Posted: Tue Jul 15, 2008 10:51 am Post subject: Re: Practical information for dealing with bank runs?
Yesplease, There's over a trillion dollars at risk, and likely over two trillion once the chaos works it's way through the system. Care to make a wager?
Posted: Tue Jul 15, 2008 1:23 pm Post subject: Re: Practical information for dealing with bank runs?
A trillion? Maybe if we count the impact throughout the world economy, but will the US gov end up paying that much? I doubt it. In any event, I've tried wagers on the forum and everyone always backs out. _________________
Joined: Sep 25, 2004 Posts: 4420 Location: Boston, MA
Posted: Tue Jul 15, 2008 1:37 pm Post subject: Re: Practical information for dealing with bank runs?
yesplease wrote:
A trillion? Maybe if we count the impact throughout the world economy, but will the US gov end up paying that much? I doubt it. In any event, I've tried wagers on the forum and everyone always backs out.
I don't back out, ask Roccman or Ayoob. I'm on the hook for $50 to each of them if oil crosses $200 a barrel. Another $50 to Roccman if electricity prices rise more than 15% this year.
But then again, I'm somewhat of a gambling addict so don't use me as an example.
As for bank runs, if you put a second name on the bank account, you double your protection to $200,000. You should make sure you trust that person 100% or else they could clean you out. A spouse or dependent child usually works.
IRAs are protected up to $250,000 (if I recall correctly).
If you have more than $200,000 in cash, you don't need my advice. _________________ "www.peakoil.com is the Myspace of the Apocalypse."
Posted: Tue Jul 15, 2008 1:50 pm Post subject: Re: Practical information for dealing with bank runs?
In my previous business, the line of credit issuewas critical. Losing it is very bad if you need it to operate. I'd draw it all out and consider the extra interest to be a cost of insurance that allows you to do business, if you can afford it.
The supply lines for Just In Time money are very shaky right now.
Posted: Thu Jul 17, 2008 9:01 am Post subject: Re: Practical information for dealing with bank runs?
Tyler_JC wrote:
yesplease wrote:
A trillion? Maybe if we count the impact throughout the world economy, but will the US gov end up paying that much? I doubt it. In any event, I've tried wagers on the forum and everyone always backs out.
I don't back out, ask Roccman or Ayoob. I'm on the hook for $50 to each of them if oil crosses $200 a barrel. Another $50 to Roccman if electricity prices rise more than 15% this year.
Where's the fun in that? I mean, betting is betting, but if people wanna be fleeced, that isn't fair. I bet someone Uranium wouldn't break $200 and it didn't even touch $150, falling to under $100 by the specified date. I suppose I should have gone lower and taken odds, but it's not like they responded to me or posted on this site since.
In any event, I don't think I'd like your odds, not enough of a ROI... _________________
LOS ANGELES - The frustration didn't end for some IndyMac customers when they finally were able to withdraw their funds from the failing Southern California bank seized last week by federal regulators.
Some people have run into more problems when they tried to deposit IndyMac cashier checks at other banks.
_________________ "The problems of today will not be solved by the same thinking that produced the problems in the first place." - Albert Einstein
Posted: Thu Jul 17, 2008 12:06 pm Post subject: Re: Practical information for dealing with bank runs?
Tyler_JC wrote:
As for bank runs, if you put a second name on the bank account, you double your protection to $200,000.
That's assuming the second person doesn't already have an account with that bank. _________________ "I was born in a deep forest
I wish I could live here all my life
I am made from stones and roots
My home, these woods and roads
All my life I loved this sound
Of the woods all around
Eagles fly where the winds blow free" -Korpiklaani
Posted: Thu Jul 17, 2008 12:12 pm Post subject: Re: Practical information for dealing with bank runs?
Don't they prorate it? I mean, if there are two people on a $80,000 deposit, then both of those people could still have $60,000 in another account or share of accounts at the same bank, correct? _________________
Posted: Fri Jul 18, 2008 1:17 pm Post subject: Re: Practical information for dealing with bank runs?
This is all pretty irrelevant for most people right? How many people in our debt-ridden culture(avg debt/assets 135%) actually have enough savings to worry about?
Posted: Fri Jul 18, 2008 4:00 pm Post subject: Re: Practical information for dealing with bank runs?
yesplease wrote:
A trillion? Maybe if we count the impact throughout the world economy, but will the US gov end up paying that much? I doubt it. In any event, I've tried wagers on the forum and everyone always backs out.
I'm talking about a trillion just in the U.S. God knows what the international ramifications will be.
Posted: Sat Jul 19, 2008 1:36 am Post subject: Re: Practical information for dealing with bank runs?
Twilight wrote:
You might actually be at greater risk from something going wrong with direct debit / standing order transfers, such ending up with a duplicate
In the case of these recently failed banks, does anybody know what has happened to direct deposit/standing order transactions? For example, I am thinking of salary deposited semi-monthly into an account, and mortgage payment debited on the same day. Any stories about this?
Posted: Sat Jul 19, 2008 3:14 pm Post subject: Re: Practical information for dealing with bank runs?
Koyaanisqatsi wrote:
In the case of these recently failed banks, does anybody know what has happened to direct deposit/standing order transactions? For example, I am thinking of salary deposited semi-monthly into an account, and mortgage payment debited on the same day. Any stories about this?
When Netbank failed, my salary was being direct deposited there, and many of my bills were being automatically paid from my Netbank checking account.
The transition wasn't too difficult. There are usually no transactions on weekends, and accounts were only closed for one weekend. After the accounts were switched to ING Direct, we were given a countdown of sorts: a timeline as to when various Netbank functions would go away. Dates when paper checks would no longer be accepted, ATM transactions would no longer work, electronic transfers would no longer be honored, etc.
So I had get everything switched over to a new account. Though despite their claim that electronic transfers would no longer be accepted after December, they still are.
The only problem I had was with an automatic investment into a mutual fund. The fund was bought out by another company at the same time Netbank was taken over by ING Direct, and though I told them to stop deducting money from my account, it fell through the cracks, and they kept doing it. They still are. Even though ING Direct said they would no longer honor EFTs. I'm sure a phone call would fix it, but I don't mind, so I'm leaving it for now. _________________ "The problems of today will not be solved by the same thinking that produced the problems in the first place." - Albert Einstein
Posted: Sat Jul 19, 2008 3:29 pm Post subject: Re: Practical information for dealing with bank runs?
Leanan wrote:
When Netbank failed, my salary was being direct deposited there, and many of my bills were being automatically paid from my Netbank checking account. ...
Thanks, Leanan, that's very helpful information and reassuring. I guess the only thing I have to worry about is a major financial meltdown (across multiple banks) - but then I suppose I'd have larger things to worry about than the direct deposit!
Posted: Sat Jul 19, 2008 4:28 pm Post subject: Re: Practical information for dealing with bank runs?
threadbear wrote:
yesplease wrote:
A trillion? Maybe if we count the impact throughout the world economy, but will the US gov end up paying that much? I doubt it. In any event, I've tried wagers on the forum and everyone always backs out.
I'm talking about a trillion just in the U.S. God knows what the international ramifications will be.
May be, but I doubt that'll be what the US govt pays. I suppose if you're referring to the "losses" investors were conned out of, sure. But that's people getting ripped a new one in a different way. Ain't nothing new under the sun... _________________
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