I hope this is not a foreshadowing. https://nypost.com/2023/03/10/silicon-valley-bank-meltdown-sparks-contagion-fears/ https://www.cnbc.com/2023/03/10/sil...ulators-fdic-to-protect-insured-deposits.html also, Blackstone not doing well https://www.reuters.com/business/fi...operty-backed-cmbs-bloomberg-news-2023-03-02/
This has even been mentioned on the MSM, which means things are really bad. I wonder how credit unions are doing since @Mary Stetler mentioned that.
My daughter works in the big box home improvement store in town. She said there isn't enough traffic to make payroll this week. Interesting times.
Wow, the Home Depot and Lowe's closest to us have been packed with people. My husband and I were draining the kids' inheritance in the garden department all week.
Accounts are insured by the FDIC for up to $250K each account, so unless you're a real money bags, individual savers should be OK.
FDIC has $3 billion dollars to cover $9 trillion in insured accounts. It doesn't work. The plan is for the banks to turn your money into bank shares, essentially confiscating your money, but if the bank survives, so does your money. If the bank doesn't make it, you lose everything at that bank. I think it is a good idea to diversify whatever holdings you have. I am no expert on this, but both the upcoming bank failures and the 2008 crash were made possible by the Clinton maneuver that removed the separation between investment banks and commercial banks, thus allowing the commercial banks to dabble in places they shouldn't with your money like futures. The "wall" (the Glass-Steagall Act of 1933) was one of the first actions taken by Roosevelt to protect the consumer bank accounts. That was eliminated under Clinton as "unnecessary regulation". I don't think credit unions are affect as much as banks, so if you are eligible to join a credit union, those accounts are also insured and are not as subject to the craziness (I think).
Picture all over the twitter news showing people in really long lines that were lining up to take their money out of banks. Wondering how it is going to look by Monday …… Probably a lot more people using ATM machines and taking out at least some money, so a lot of banks might be short next week if this continues.
That is apparently what caused the two banks to fail. Depositors withdrew more money than the banks had on hand, and the banks had to sell assets at rock-bottom prices to try to satisfy the demand. I think both the banks that failed had holding in crypto, and that took a big dive too.
I am a bit worried about just the news of that one bank causing more runs. I had plans of taking some checks to get cashed tomorrow, although I am a prepper in all ways. Will see. I was in aldis when their computers went down once and the cashiers were begging people to use cash or they could not do transactions. I think they eventually needed exact change. Everyone helped. But it puts into perspective how much we need to prepare to do without technology, even in banks, in emergencies.
It’s looking like Monday might be interesting. https://www.breitbart.com/europe/20...s-lose-30-billion-overnight-as-panic-spreads/
I saw postings of lines around the block at banks in California despite the rain. It doesn't bode well for Monday morning.