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Forum
-> Household Management
-> Finances
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amother
OP
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 Mon, Mar 13 2023, 8:22 am
Were they able to withdraw their money?
How does it work?
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amother
Freesia
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Mon, Mar 13 2023, 8:23 am
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amother
Dimgray
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Mon, Mar 13 2023, 8:27 am
There's so much fearmongering and overdramatization going on.
There are protocols and safeguards for exactly this kind of situation.
No one is going to lose their money and there isn't going to be another great depression.
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amother
IndianRed
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Mon, Mar 13 2023, 8:49 am
| amother Dimgray wrote: | There's so much fearmongering and overdramatization going on.
There are protocols and safeguards for exactly this kind of situation.
No one is going to lose their money and there isn't going to be another great depression. |
Actually the fear is very real. The indisputable fact is that the FDIC only insures up to 250k per account (holder). In SVB they had 175 billion in deposits. 150 billion of that (around 80%) was in accounts exceeding 250k. That money was not insured. Period. Had the Fed not decided to step in and guarantee those deposits, every penny could have been lost.
I don't know what the numbers are in signature, but you can be sure most of the deposits were not guaranteed.
As far as a depression goes, I'm not going to make a prediction. I'll just say that our economy is accustomed to working when rates are zero and money is easy. Because of inflation (caused by the easy money policy, and handouts) rates MUST rise. What's more is that the normal action taken by governments to fight recessions is to lower rates and hand out stimulus and free money. Because this recession was caused by inflation and too much stimulus, the very methods used to fight recessions would actually make it worse. There likely will be no free money/stimulus if things get bad.
I'm not trying to fear monger but I actually believe we are in for a very severe recession. We're going to find out if our economy can function with high interest rates and no free money. I'm guessing a firm no. I doubt you can present a logical reason why we won't go into a deep recession other then to say it's fearmongering. We shall see.
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amother
OP
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Mon, Mar 13 2023, 8:58 am
| amother IndianRed wrote: | Actually the fear is very real. The indisputable fact is that the FDIC only insures up to 250k per account (holder). In SVB they had 175 billion in deposits. 150 billion of that (around 80%) was in accounts exceeding 250k. That money was not insured. Period. Had the Fed not decided to step in and guarantee those deposits, every penny could have been lost.
I don't know what the numbers are in signature, but you can be sure most of the deposits were not guaranteed.
As far as a depression goes, I'm not going to make a prediction. I'll just say that our economy is accustomed to working when rates are zero and money is easy. Because of inflation (caused by the easy money policy, and handouts) rates MUST rise. What's more is that the normal action taken by governments to fight recessions is to lower rates and hand out stimulus and free money. Because this recession was caused by inflation and too much stimulus, the very methods used to fight recessions would actually make it worse. There likely will be no free money/stimulus if things get bad.
I'm not trying to fear monger but I actually believe we are in for a very severe recession. We're going to find out if our economy can function with high interest rates and no free money. I'm guessing a firm no. I doubt you can present a logical reason why we won't go into a deep recession other then to say it's fearmongering. We shall see. |
What do you recommend as the safest place to keep cash?
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amother
Lemonchiffon
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Mon, Mar 13 2023, 9:03 am
| amother Dimgray wrote: | There's so much fearmongering and overdramatization going on.
There are protocols and safeguards for exactly this kind of situation.
No one is going to lose their money and there isn't going to be another great depression. |
Seriously? Maybe you can advise what to do with our hundreds of thousands in the bank that we put away for college/marrying our family of young children?
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amother
IndianRed
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Mon, Mar 13 2023, 9:06 am
| amother OP wrote: | | What do you recommend as the safest place to keep cash? |
US savings bods and treasuries are 100% safe. Any bank (assuming they are FDIC insured) is 100% safe until 250k.
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amother
Dimgray
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Mon, Mar 13 2023, 9:08 am
| amother Lemonchiffon wrote: | | Seriously? Maybe you can advise what to do with our hundreds of thousands in the bank that we put away for college/marrying our family of young children? |
You don't need to do anything unless you have more than 500k in a joint account or 250k in a single account
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amother
Lemonchiffon
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Mon, Mar 13 2023, 9:18 am
| amother Dimgray wrote: | | You don't need to do anything unless you have more than 500k in a joint account or 250k in a single account |
Nice to be so calm with other peoples money and make false predictions.
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amother
OP
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Tue, Mar 14 2023, 9:30 am
Update:
Signature Bank checks given out after bank collapse to account holders and then deposited into other banks, have an "extended hold".
Theyre not clearing as quickly as checks usually do.
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amother
Chartreuse
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Tue, Mar 14 2023, 9:38 am
It's sane, rational advice. I follow the same practice. Make sure your money in the bank is FDIC insured. Don't keep it all in one place. Don't panic.
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amother
Heather
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Tue, Mar 14 2023, 9:38 am
Indeed scary stuff
Hopefully nothing worse
News is credit Suisse is going down next
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