16th largest bank, over 200 billion in assets, trouble for a month or more, investors made an appr. 40 billion run on the bank....bank needed cash, tried to raise 2 billion, sold their bond portfolio, most likely for pennies on the dollar, due to the interest rate increases. Stock holders made 2 runs on the market twice this week, So there goes that asset.
The things folks don't understand(I was a banker in another life) is that with one bank, the FDIC will cover the account up to 250K(funds available by monday)...but if a whole bunch of banks have the same problem, at the same time....it could be 1929 all over again! The FDIC will not have enough money to cover a major bank collapse.
Do you think that our government wants to talk about this? The Treasury Department, Bank regulators or anyone else?
Bottom line is until the Federal Reserve(my former employer) perfects their own version of bitcoin...and they are, to better control all our spending...we still need banks.
Based on price, buy some 1 oz silver bars to take to the store to buy groceries. Everyone says "buy" gold...but do you want to bring a $2000 1 oz gold bar to the store to buy a loaf of bread and a 6 pack or Bud Light?
Finally, get some cash out of the bank(store it in your mattress or somewhere). Folks may still accept cash after a bank collapse...until it turns out like the currency of the South after the civil war. Also, get your important documents out of your bank safe deposit box, buy a fireproof gun safe.....and store all those documents in there with your guns!!
Asking why? Because if the banking system collapses, you will never get back into your bank ever again.
Why would there be a bank collapse? Guess what folks. Most all of our Treasury notes, bonds and bilsl are purchasing by foreign nations. Look at out horrible debt load in this country. Our treasury sales finance much of our deficit spending. Most everywhere, oil can only be purchased in US dollars. Ever since Nixon took us off the gold standard in 1970, that is how oil had been purchased. So many dollars for the USA. If countries no longer wish to pay for oil in dollars(China is current working to do this)...[Edited by admin for language, by chevman57]
[Edited by admin for political language, by chevman57]
I could go on and on...but enough for no.
