Pull out money from Bank??

[pickettt]

Originally Posted by newu5er

You can't be more wrong about this...."We’re not going to have a financial crisis. The worst is behind us." I'd be willing to bet a Hulk that you will retract these words in the future.

If I know Brett, I’d say he was being facetious. He knows what’s at stake here.

[Tepeter1]

If the country goes bust, the money has no value anyway. Liquor, precious metals, food, ammo and weapons will determine your overall security. Leave it in.


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[zengineer]

It makes as much sense as buying an entire pallet of toilet paper. Actually one of those could make you a profit so it makes even less sense.


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[Rolexoman]

We always keep a small chunk of cash tucked away but most large banks are insured and in all seriousness if markets crash and the world economy tanks cash is nothing more than tinder to start a fire as you can’t eat it and it would be worthless

[schoolboy]

Originally Posted by zengineer

It makes as much sense as buying an entire pallet of toilet paper. Actually one of those could make you a profit so it makes even less sense.


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An entire pallet of toilet paper kinda makes sense

Haha


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[Tha Baron]

Originally Posted by Rolexoman

We always keep a small chunk of cash tucked away but most large banks are insured and in all seriousness if markets crash and the world economy tanks cash is nothing more than tinder to start a fire as you can’t eat it and it would be worthless

That’s one extreme... but think about having to transact in cash and everyone else has to as well even for a short time. There is nowhere near enough cash in circulation to supply 5% of business I’d guess. Hurricane sandy left people up a creek because the electric was out and credit card readers were down. I’m not saying the covid will cause the grid to go down, but have a few thousand in 20s is never a bad idea.

People have expensive watches on their wrist all day and yet we act like having a wad of money in paper bills is crazy or high risk.

I can think of no good reason to NOT stock up on cash... obviously not your whole account but enough you could float several weeks of groceries, lawn mowers, baby sitters etc.

As far as FDIC insurance, stay under limits (your spouse counts as another $250k) and you have nothing to worry about. FDIC will 99%+ of the time find another bank to assume your deposits if the bank fails. If not they’ll cut you a check, they have a dotted line to US Treasury.

If you’re really worried your bank failing and have large commercial accounts over the limit, then maybe diversify your cash management. I wouldn’t worry about any meaningful failures (big banks) this go round but some banks will in fact fail... especially the smaller ones with poor liquidity plans and already burdened staff.

[Tha Baron]

Originally Posted by Tepeter1

If the country goes bust, the money has no value anyway. Liquor, precious metals, food, ammo and weapons will determine your overall security. Leave it in.


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Again, this isn’t an all or nothing thing... what about a several week blip? People act like the only two outcomes are 1) Puppies and Rainbows or 2) Walking Dead

[ct.matt]

We have emergency cash for gas and groceries for if the big one hits and power is out for days. Taking all your money out of FDIC insured bank accounts is stupid. Maybe learn about bank runs and their consequences

[schoolboy]

Originally Posted by Tha Baron

That’s one extreme... but think about having to transact in cash and everyone else has to as well even for a short time. There is nowhere near enough cash in circulation to supply 5% of business I’d guess. Hurricane sandy left people up a creek because the electric was out and credit card readers were down. I’m not saying the covid will cause the grid to go down, but have a few thousand in 20s is never a bad idea.

People have expensive watches on their wrist all day and yet we act like having a wad of money in paper bills is crazy or high risk.

I can think of no good reason to NOT stock up on cash... obviously not your whole account but enough you could float several weeks of groceries, lawn mowers, baby sitters etc.

As far as FDIC insurance, stay under limits (your spouse counts as another $250k) and you have nothing to worry about. FDIC will 99%+ of the time find another bank to assume your deposits if the bank fails. If not they’ll cut you a check, they have a dotted line to US Treasury.

If you’re really worried your bank failing and have large commercial accounts over the limit, then maybe diversify your cash management. I wouldn’t worry about any meaningful failures (big banks) this go round but some banks will in fact fail... especially the smaller ones with poor liquidity plans and already burdened staff.

Thanks for the thought out response.

I don’t have a lot of money, seriously.

I’m just a working class guy wondering if I should pull my money in case something happens.

But I decided to pull maybe $2000 just in case.

[schoolboy]

Originally Posted by Tha Baron

Again, this isn’t an all or nothing thing... what about a several week blip? People act like the only two outcomes are 1) Puppies and Rainbows or 2) Walking Dead

Exactly. That’s the feeling that I get from some of the responses.

[schoolboy]

Originally Posted by ct.matt

We have emergency cash for gas and groceries for if the big one hits and power is out for days. Taking all your money out of FDIC insured bank accounts is stupid. Maybe learn about bank runs and their consequences

I think learning about it would take a long time.

There are tons of details and scenarios that can happen, and they might all have different consequences.

I just wanted to ask the folks here because some of you guys seem like you’re very financially literate.

I’ve appreciated the advice though.

[Dyim]

A few thousand would be reasonable if you want to make yourself feel better. Taking out 5 figures in cash would not make sense IMO.

If there is going to be crazy inflation; it would be diamonds, physical gold, and BNIB SS sports Rolex/ nautilus

[Rock]

Runs on banks are like runs on toilet paper. They are about people panicking and CAUSING a problem that didn't exist previously.
The economy isn't going to "crash". Modern governments will not allow that to occur.
There is no good reason to withdraw large amounts of cash from your 'bank' unless you are trying to cause it to fail. If everybody stays calm there will not be problems accessing your savings. Financial institutions that are subseptible to a minor "run" are/were not sound organisations in the first place.
Many small to medium size Credit Unions and Banks require you to give notice regarding large cash withdrawals - this is normal.
Panic is the danger here. Don't panic.

[EEpro]

A few thousand is a good idea. Hopefully you have a safe or locking box you can bolt down to the slab.

[bdex75]

I keep $5-$10k in cash around. Just incase I want to buy something on weekend and the bank is closed. My retirement assets are still in the market. My pension is still with my Fortune 20 company.

Here is how I look at it. If there is that much of a run on the banks that you are worried about getting cash that cash is probably close to useless.

Yes it is insured by the FDIC at the bank but if it gets that bad (it never will) the whole system will collapse.

In other words, large amounts of cash will have no value.

Gold or PM??? Maybe.

Food, water, things we cannot talk about here. Probably a better asset at that point.

How dark and deep are we going?

I am prepared for it all.


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[macuser553]

From time to time, governments do freeze bank accounts. They even sometimes steal money from them (e.g. the Cyprus haircut of the 2000s). Likewise, governments can demonetize and make paper money invalid (ala India 2016). It probably makes sense to keep some cash on hand. That said, it is hard to pay large bills like mortgages and even taxes with paper currency. Cash is likely a depreciating asset, but if a bit of it makes you feel comfortable, why not. I think having some paper cash on hand is a good idea, but it probably does not make sense to totally move an account into paper cash.

[ruffa]

Originally Posted by Rock

Runs on banks are like runs on toilet paper. They are about people panicking and CAUSING a problem that didn't exist previously.
The economy isn't going to "crash". Modern governments will not allow that to occur.
There is no good reason to withdraw large amounts of cash from your 'bank' unless you are trying to cause it to fail. If everybody stays calm there will not be problems accessing your savings. Financial institutions that are subseptible to a minor "run" are/were not sound organisations in the first place.
Many small to medium size Credit Unions and Banks require you to give notice regarding large cash withdrawals - this is normal.
Panic is the danger here. Don't panic.

Say there’s a power outage in your area for a few weeks and you have no cash on hand? Meanwhile some stores and gas stations are open but can only accept cash? This is life, unexpected things happen. You’re not invincible.

[Rock]

If there was a 'power outage' that lasted for more than a week it would be declared a "disaster" and the government move in with emergency generators and cash support payments for anyone in need. I know this because I was part of the 'Recovery' effort after a Cyclone in 2005 and went through another in 2013 that took our power and water out for a week.
We are not talking about small amounts of cash here - say up to a grand - we're talking about people rushing in to their bank and withdrawing their savings.

[Burlington]

Have a couple of weeks worth of currency available otherwise it’s safest in the bank.

[newu5er]

Originally Posted by pickettt

If I know Brett, I’d say he was being facetious. He knows what’s at stake here.

Ok totally missed the sarcasm which I’m.known for. Appreciate the context.


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[Monte Cristo]

Originally Posted by Bigblu10

With several women in the household it evaporates faster than water in the desert!

I hear ya brother

[padi56]

Yes business and money is important but some in this thread should think about this,the most precious thing we have is life, yet it has absolutely no trade-in value.

[Patton250]

Originally Posted by newu5er

You can't be more wrong about this...."We’re not going to have a financial crisis. The worst is behind us." I'd be willing to bet a Hulk that you will retract these words in the future.

First off we are already in a financial crisis right now. We were put there by the government on purpose. The only way you are right is if we keep the country closed for many months. If that happens then I will retract my previous statement. If we open up May 1 then I’m absolutely not going to retract those words. In my opinion the United States is one of the greatest countries in the history of the planet. When we resolve ourselves there’s nothing we can’t accomplish. I mean just pick up a US history book and read it then get back to me.

The fundamentals of the US economy were as strong as it’s ever been in it’s history when it was forced to a stop purposely by the government. I’m sure it will be a bumpy start up but there’s zero reason why we shouldn’t be able to pick it right back up where we left off. Unless you have some secret knowledge of some underlying thing that was going to cause disaster before all this went down and if you do please share.

I don’t understand why optimism is frowned upon so much. I would think you would hope I was right and you were wrong. Unless you’re hoping to get the hulk under MSRP caused by the country going into a massive recession?

The key is opening up the country. The numbers are already starting to look better on this virus and it looks like our good friends in Washington were way off on their models and it’s not going to be anywhere near as bad as what they predicted. If it continues that way the economy will takeoff like a rocket when it is officially allowed to by the government. I would hope everyone agrees that’s a good thing. IMHO

[brandrea]

Originally Posted by padi56

Yes business and money is important but some in this thread should think about this,the most precious thing we have is life, yet it has absolutely no trade-in value.

Couldn’t agree more Peter.

[brandrea]

Originally Posted by 1st amg

I think you are over reacting. Everyone of the financial advisors I have spoken with seem to all think that the 2008 debacle was much much worse.

It’s a tough crowd isn’t it Nick? A lot of armchair quarter backs here lately.

[swatty]

Imagine if you took all your cash out of the bank and then to stop spreading the virus you are not allowed to use cash , only tap and go, what do you do then ?
It’s happening here now .

[newu5er]

Originally Posted by Patton250

First off we are already in a financial crisis right now. We were put there by the government on purpose. The only way you are right is if we keep the country closed for many months. If that happens then I will retract my previous statement. If we open up May 1 then I’m absolutely not going to retract those words. In my opinion the United States is one of the greatest countries in the history of the planet. When we resolve ourselves there’s nothing we can’t accomplish. I mean just pick up a US history book and read it then get back to me.

The fundamentals of the US economy were as strong as it’s ever been in it’s history when it was forced to a stop purposely by the government. I’m sure it will be a bumpy start up but there’s zero reason why we shouldn’t be able to pick it right back up where we left off. Unless you have some secret knowledge of some underlying thing that was going to cause disaster before all this went down and if you do please share.

I don’t understand why optimism is frowned upon so much. I would think you would hope I was right and you were wrong. Unless you’re hoping to get the hulk under MSRP caused by the country going into a massive recession?

The key is opening up the country. The numbers are already starting to look better on this virus and it looks like our good friends in Washington were way off on their models and it’s not going to be anywhere near as bad as what they predicted. If it continues that way the economy will takeoff like a rocket when it is officially allowed to by the government. I would hope everyone agrees that’s a good thing. IMHO

You read a lot more into my post than what is reasonable. In the finance world we call that an assumption, which has the possibility of being wrong a certain percentage of time.

No one is debating:
1) That the US is one of the greatest country in the world
2) People have to think positively in terms of the outcome
3) Optimism isn't frowned upon
4) That the economy wasn't strong
5) That everyone would agree the economy taking off "like a rocket" isn't a good thing
6) The economy won't rebound eventually

So now you know the portion of your post I agree with, go back and read and comprehend what I said...

This isn't a stop start situation and to describe an economic rebound in this scenario as "bumpy" just shows the level of comprehension you have of economics in general. Either that or you choose only to read what supports the fantasy in your mind which is somewhat evidenced by your posts. My point was you are wrong because you have no basis to declare "the worst is behind us" and "we're not going to have a financial crisis"....sorry, but that's just plain wrong. We are entering into a recession and you can't say you've seen the end of something that hasn't ended yet. You may not choose to retract your statements, nor should you have to, but I'll bump this post to remind you of one example where you speak about something you know relatively little about.

No one has a crystal ball. There is optimism in the market right now that is unfounded. Just because the market reacts in a certain way, doesn't mean there is good reason behind it. There will be a bump, we saw some of that yesterday, but that's a signal of optimism we have found a bottom on the virus. The end of the virus and the end of the economic damage that has occurred are two different things despite having a cause and effect relationship as you attempted to note "forced to a stop purposely by the government". And yes, there are many reasons why we can't just start back up "right where we left off"...retail is decimated, a large amount of SMBs will not survive, millions unemployed. Do you think we just pick up where we left off when more than 25% of the US economy has been dormant for months? When US households are holding record levels of debt and jobs are lost, what do you think happens? I help you, we make an attempt to stimulate the economy by sending out checks. What happens when those checks aren't enough and we have to send out more checks? What happens when the Fed takes rates to zero, but there isn't any cash circulating? Maybe this is resonating, but I doubt it.



Lastly, I used the Hulk example as a way to make the conversation watch-related despite this being an open discussion forum. Really has no bearing on the conversation other than a friendly bet you could take if you believed in your position. We both know the outcome of that though. I'm not a hairdresser and I don't own a lawncare business. I've been in finance for over 25 years, but you do you man.

[beshannon]

Originally Posted by padi56

Yes business and money is important but some in this thread should think about this,the most precious thing we have is life, yet it has absolutely no trade-in value.

I completely agree and still do not understand the point of the original post

[walds11]

Originally Posted by beshannon

I completely agree and still do not understand the point of the original post

Me either Good grief.

[newu5er]

Originally Posted by walds11

Me either Good grief.

OP just asked if he would be in a better position to pull money from the financial system due to what some people think is an impending crisis of varying proportions. The level of crisis is what is being debated in relation to that initial question. Think he got his answer.