#1 Edited by Commando (1878 posts) -

We all know that yesterday, Dow had it's biggest single day point drop in history after they rejected the bailout bill. And today it rebounded a LITTLE when they talked about another bailout bill. All the banks I'm in are FDIC insured, but I really don't trust the government enough to keep my money in the bank. I don't plan on taking my money out for a very long time, but if banks continue to go under, I might actually do it. So how bad should it get before we take all of our money out of the bank?

PS: I'm not doing it yet because if I take my money out right now, I'll just be contributing to the problem.
#2 Edited by MB (11884 posts) -

If you really distrust the government that much, put your cash into gold coins.  You should be more worried about the value of the dollar than not having access to your cash...after all, if a gallon of milk ends up costing $50, what good is it to you?

Moderator
#3 Posted by BiffMcBlumpkin (3720 posts) -

If you're serious you should go to the moron bank first and make a huge deposit, then re-ask yourself the same question.

#4 Edited by BiffMcBlumpkin (3720 posts) -
MB said:
"If you really distrust the government that much, put your cash into gold coins.  You should be more worried about the value of the dollar and not having access to your cash...after all, if a gallon of milk ends up costing $50, what good is it to you?"
The answer depends on whether or not Hannaford starts accepting gold coins.
#5 Posted by Commando (1878 posts) -
MB said:
"If you really distrust the government that much, put your cash into gold coins.  You should be more worried about the value of the dollar than not having access to your cash...after all, if a gallon of milk ends up costing $50, what good is it to you?"
I guess it's not so much that I distrust them, I just know that if they start repaying every person who lost their money, that's just gonna make the government's debt even worse. I don't want the government to have to repay me, and even if it comes down to that, I expect it to take them months to do it.
#6 Posted by Jigen (189 posts) -

Putting your money into gold can be costly, people who sell gold like that will take a large chunk of your money's worth, and it would have been much better to do so 2 years ago.

Anyways, money in banks is usually covered by FDIC, you can verify that your bank or credit union is covered.  I suppose if all society fails, this won't be true anymore, but it's not like you'll be able to trade your gold for food anyways.

#7 Posted by BiffMcBlumpkin (3720 posts) -

Seriously, the hit the Dow took yesterday could easily be made up in two days time. The sky hasn't fallen, your money is "safe."

What are you planning to do after withdraw your cash? If enormous inflation is your concern the only difference between having your money in a bank or having it in an envelope underneath your mattress is your money won't earn interest underneath your mattress. 

#8 Posted by Jigen (189 posts) -
BiffMcBlumpkin said:
"Seriously, the hit the Dow took yesterday could easily be made up in two days time. The sky hasn't fallen, your money is "safe."
Depends on how much money you have.  Even with less than 1 million dollars in stock you could have lost over $150K dollars yesterday alone.
#9 Edited by DualReaver (3882 posts) -
BiffMcBlumpkin said:
"Seriously, the hit the Dow took yesterday could easily be made up in two days time. The sky hasn't fallen, your money is "safe."

What are you planning to do after withdraw your cash? If enormous inflation is your concern the only difference between having your money in a bank or having it in an envelope underneath your mattress is your money won't earn interest underneath your mattress. "
No, he just doesn't want the Government to owe him any money if the banks bankrupt.


>.>
#10 Edited by MattyFTM (14328 posts) -

The only cases where you would actually loose all your money from your bank account would be a situation that would lead to HUGE inflation rates, making the money you stored under your mattress pretty much worthless anyway. So there's no point in taking it out.

Moderator Online
#11 Posted by brukaoru (5079 posts) -

I trust any bank that is FDIC insured. If everyone lost their money and that guarantee was lost, there would be a rebellion against the government.

#12 Posted by Jigen (189 posts) -
DualReaver said:
No, he just doesn't want the Government to owe him any money if the banks bankrupt.


>.>"
Maybe he should just donate all his money to some politician if he's feeling so patriotic.  The gov't is supposed to be for the people, not the other way around.
#13 Edited by BiffMcBlumpkin (3720 posts) -
Jigen said:
"BiffMcBlumpkin said:
"Seriously, the hit the Dow took ye
#14 Edited by DualReaver (3882 posts) -

$50 says he donates it to Palin.


BiffMcBlumpkin said:

"He's talking about physically pulling his savings from a commercial bank, not unloading a tanking stock or worrying about his investments. He's worried that the market crashing will cause a run on the banks (upsetting Jimmy Stuart) and him not being able to physically withdraw his money from his savings, otherwise he wouldn't have been talking about FDIC.
Never going to happen."

Read his updated reason as to why, it's even better.

Commando
said:
"I guess it's not so much that I distrust them, I just know that if they start repaying every person who lost their money, that's just gonna make the government's debt even worse. I don't want the government to have to repay me, and even if it comes down to that, I expect it to take them months to do it."

#15 Posted by Commando (1878 posts) -
DualReaver said:
"Jigen said:
"DualReaver said:
No, he just doesn't want the Government to owe him any money if the banks bankrupt.


>.>"
Maybe he should just donate all his money to some politician if he's feeling so patriotic.  The gov't is supposed to be for the people, not the other way around."
$50 says he donates it to Palin."
Nah I don't like Palin that much. I like McCain but I think him choosing Palin was a mistake. Still voting for him though.
#16 Posted by Jigen (189 posts) -
DualReaver said:
$50 says he donates it to Palin."
Hey baby, wanna dance?
#17 Posted by Player1 (3850 posts) -

Like mentioned above here, if your seriously worried, put it into gold coins...or move to a country with different currency. Because even if you take your money out, the value of the dollar will still equal jack squat. 

#18 Posted by Commando (1878 posts) -
Player1 said:
"Like mentioned above here, if your seriously worried, put it into gold coins...or move to a country with different currency. Because even if you take your money out, the value of the dollar will still equal jack squat. "
I'm not so sure moving to another country would be very good. Europe is doing just as bad as we are, and I don't wanna move to a 3rd world piece of shit country. The dollar is actually catching up to the Euro right now, which makes me believe Europe is doing even worse than we are.
#19 Edited by BiffMcBlumpkin (3720 posts) -
DualReaver said:
BiffMcBlumpkin said:
"He's talking about physically pulling his savings from a commercial bank, not unloading a tanking stock or worrying about his investments. He's worried that the market crashing will cause a run on the banks (upsetting Jimmy Stuart) and him not being able to physically withdraw his money from his savings, otherwise he wouldn't have been talking about FDIC.
Never going to happen."
"
Then I guess he doesn't understand the difference between these huge, failing Investment Banks and the Commercial Banking industry.

Places like Bear Stearns, Merril Lynch, etc are not insured depository establishments as are the commercial banks he's talking about, where he keeps his money. 

They're completely different beasts, and pulling his money from his savings and sticking it in a magical envelope would be something a crazy person would do.
#20 Posted by Commando (1878 posts) -
BiffMcBlumpkin said:
"DualReaver said:
BiffMcBlumpkin said:
"He's talking about physically pulling his savings from a commercial bank, not unloading a tanking stock or worrying about his investments. He's worried that the market crashing will cause a run on the banks (upsetting Jimmy Stuart) and him not being able to physically withdraw his money from his savings, otherwise he wouldn't have been talking about FDIC.
Never going to happen."
"
Then I guess he doesn't understand the difference between these huge, failing Investment Banks and the Commercial Banking industry.

Places like Bear Stearns, Merril Lynch, etc are not insured depository establishments as are the commercial banks he's talking about, where he keeps his money. 

They're completely different beasts, and pulling his money from his savings and sticking it in a magical envelope would be something a crazy person would do."
If things get like they were in the early 30s, it might be our only choice
#21 Edited by BiffMcBlumpkin (3720 posts) -
Commando said:
"BiffMcBlumpkin said:
"DualReaver said:
BiffMcBlumpkin said:
"He's talking about physically pulling his savings from a commercial bank, not unloading a tanking stock or worrying about his investments. He's worried that the market crashing will cause a run on the banks (upsetting Jimmy Stuart) and him not being able to physically withdraw his money from his savings, otherwise he wouldn't have been talking about FDIC.
Never going to happen."
"
Then I guess he doesn't understand the difference between these huge, failing Investment Banks and the Commercial Banking industry.

Places like Bear Stearns, Merril Lynch, etc are not insured depository establishments as are the commercial banks he's talking about, where he keeps his money. 

They're completely different beasts, and pulling his money from his savings and sticking it in a magical envelope would be something a crazy person would do."
If things get like they were in the early 30s, it might be our only choice"

The reason the FDIC exists is because of those kinds of bank panics.

Back then people actually risked losing their money (or a lrage portion of it) when a bank went under. It isn't like that today, and regardless, the commerical banking industry is fine. Unless you have a time machine large enough to fit the entire country into it's not going to revert to the systems in place before and during the early 1930's.
#22 Posted by Jigen (189 posts) -

Yea I wouldn't worry about it.  It would take a near total collapse of civilization, and nothing can be avoided in those situations.

#23 Edited by BiffMcBlumpkin (3720 posts) -
Jigen said:
"Yea I wouldn't worry about it.  It would take a near total collapse of civilization, and nothing can be avoided in those situations."

Even if the sky were falling, I still don't understand what he's getting at.
If the dollar was rendered worthless it wouldn't matter if he had his in a FDIC insured bank or in his wallet, he wouldn't be losing his money either way in the physical sense, it would just be losing value. 
#24 Posted by Giantkitty (808 posts) -

If you're that worried, buy some extra food. As long as it isn't that perishable, the worst that will happen is you'll eat it later anyways. Just don't buy hundreds of packages of Ramen noodles you'll get sick of.

Or if you don't think the US economy will collapse, pay off your debts, especially interest bearing ones, like credit cards

#25 Posted by Solid_SnakeXx (1771 posts) -

Take all your money now and move to mexico.
Mexico is going to be the new world power BELIEVE ME!

#26 Posted by Jigen (189 posts) -
Giantkitty said:
"If you're that worried, buy some extra food. As long as it isn't that perishable, the worst that will happen is you'll eat it later anyways. Just don't buy hundreds of packages of Ramen noodles you'll get sick of.

Or if you don't think the US economy will collapse, pay off your debts, especially interest bearing ones, like credit cards"
It's always a good idea to have a stockpile of food actually.  That and water, batteries...  you can look up other survival kits as well.  If it comes to starvation, ramen noodles are better than nothing.
#27 Posted by BiffMcBlumpkin (3720 posts) -
Jigen said:
"Giantkitty said:
"If you're that worried, buy some extra food. As long as it isn't that perishable, the worst that will happen is you'll eat it later anyways. Just don't buy hundreds of packages of Ramen noodles you'll get sick of.

Or if you don't think the US economy will collapse, pay off your debts, especially interest bearing ones, like credit cards"
It's always a good idea to have a stockpile of food actually.  That and water, batteries...  you can look up other survival kits as well.  If it comes to starvation, ramen noodles are better than nothing."
Or buy a gun, and you get it all for free.
#28 Posted by SmugDarkLoser (4619 posts) -

take your money out of the bank and invest it- it is the BEST time our generation will ever see for investment most likely.

#29 Posted by SmugDarkLoser (4619 posts) -
Jigen said:
"Giantkitty said:
"If you're that worried, buy some extra food. As long as it isn't that perishable, the worst that will happen is you'll eat it later anyways. Just don't buy hundreds of packages of Ramen noodles you'll get sick of.

Or if you don't think the US economy will collapse, pay off your debts, especially interest bearing ones, like credit cards"
It's always a good idea to have a stockpile of food actually.  That and water, batteries...  you can look up other survival kits as well.  If it comes to starvation, ramen noodles are better than nothing."

actually, ramen is one of the best.  It's loaded with fats, sugars, and calories and is very cheap.  Very good for survival