I just saw a blurb from an accountant on the bank failure. He said the Silicon Valley Bank failure was the second largest in U.S. history and it used a large portion of the FDIC reserves just for that bank. He also said Wells Fargo is also in danger, and if that one failed, it would be catastrophic. He also suspected without evidence that the Administration has been borrowing form the FCIC funds reserve to keep inflation down and replacing that with IOUs, just like Johnson did with Social Security to finance the Vietnam War. It is a way to spend money without it showing up on the "books". Perhaps FDIC money is going to Ukraine. He said regional banks were at risk if a social media post led people to think their money is at risk. Have at least 2 months of cash or other liquid assets on hand to cover expenses. It will be a perfect opportunity to institute a "Digital Dollar" that can be used to control your spending and what you spend it on as well as tracking how you spend your money. We'll see how this shakes out. It could be much bigger then the 2008 failure.
Yeah, I’m thinking it’s going to be scary. People have been on edge about the economy for quite an while and things like this (link) can be self fulfilling prophecies. https://trendingpoliticsnews.com/br...ut-silicon-valley-bank/?utm_source=whatfinger
They are now saying that New York’s Signature Bank has been closed by regulators, citing systemic risk. I am not sure what that even means, but it does not sound good at all ! It is breaking news now on Twitter.
Oh ker'rapp! I just saw @Don Alaska reply as well, and I was all ready when I first saw the News this a.m., to go down and pull out all but a few dollars from my US Bank. It's not much but it's all I have. Also, thinking of stopping the auto-deposit on my SS. I don't know what's happening down at our banks, need to go down and see about it though. It's pouring rain here, and our US Bank is only open like 6 hours or less a day anyway
Damn foolish Americans letting biden stay in office and to hell with harris too. When our banks start caving in, now people are finally paying attention.
It is a scary situation, @Denise Evans , and hard to know exactly how to deal with it, or if it is even possible to find a solution . If a total collapse happens, it might not even matter what we do or do not do. I have a credit union, which is supposed to be better than a bank for safety, and I am not taking out any of my pension, but I do have some cash on hand here at home just in case things close down and we need cash. When we had the big tornadoes here, and everything was closed for around 2 weeks, nothing electronic worked, and people had to have cash for everything, so it seemed to me like it was important to be prepared for a similar emergency in the future.
The FDIC is closing banks at risk ahead of a run. The biggest threat seems to be Wells Fargo. It has been fined for illegal practices in the past, and some fear that their assets are not what they have stated them to be. The Silicon Valley Bank funded a lot of tech startups, and was being used as a cash machine by those companies. Thay apparently have the assets to cover the demand, but they are not liquid and will have to be settled by the re You can tell when Biden took office by the graph. After the pandemic receded, you can really see the impact. When everything SHOULD have been popping up, it went down the tubes. It looks like the FDIC agreed to cover the rich people's accounts as well (unlimited over $250 K) so the crash may be put off. It is the same thing that they did (kinda) in 2008, so they have kicked the can down the raod a few more years (maybe).
It is scarey, we had that whole thread on prepping and hearing about all this just this a.m., wish I'd seen the thread Friday when it started but I don't usually get on here only mornings. But I really want to get a bit more prepared, even if it's just stuffing my cupboards a bit better, and freezer, although it's so small on a fridge.
That is a good strategy, @Yvonne Smith. We have had internet and power outages here that stopped all electronic purchases even when there was no detectable disaster, so now we just have to have clerks that can make change without a machine to tell them how much to give back to the customer.
We lived close to a small country grocery when the tornadoes came through here, and with all the power out, all of their refrigerated food was counted as a loss, so they were selling to people and negotiating prices and keeping it so that making change was easy to do. That is a good thing with a small community like we had out there, people all worked together as much as they were able to do. Some of the bigger stores could not even open their doors without electricity, so they couldn’t even get inside to sell anything that was saleable.
This is a small town too, so maybe it will be good I've stayed here. I think the population was 6000 but they say half that is Pelican Bay Prison. Sometimes I wonder why I've felt as safe as I have
Oh Lord, could have gone the rest of my life without hearing that one, but I think it makes a lot of sense.