Source: Is your money safe at the bank? An economist says 'no' and withdraws his | Making Sen$e | PBS NewsHour | PBS
It is a long read but it is good...
Here is some High lights...
Former Harvard Professor of Economics Terry Burnham fears starting a “run” on Bank of America after he made public his decision to withdraw $1 million dollars from his checking account as a protest against Janet Yellen beginning her term as Federal Reserve head this month.
In an article posted above from PBS entitled Is your money safe at the bank? An economist says ‘no’ and withdraws his, Burnham, an ardent critic of the Fed, writes, “Why do I risk starting a run on Bank of America by withdrawing my money and presuming that many fellow depositors will read this and rush to withdraw too? Because they pay me zero interest. Thus, even an infinitesimal chance Bank of America will not repay me in full, whenever I ask, switches the cost-benefit conclusion from stay to flee.”
Burnham explains that Bank of America may be “unwilling or unable” to return his money should one of a number of different circumstances arise, such as depositors demanding their money back en masse, or if the investments on which 90% of depositors’ money Bank of America has loaned out to cover go bust.
In addition, Burnham points out that the FDIC, which guarantees to insure deposits up to $250,000, only has about $41 billion in reserve against $6 trillion in insured deposits.
The Harvard economist pins the blame of economic uncertainty on government intervention, and specifically Ben Bernanke and the Federal Reserve for pursuing absurd quantitative easing policies which will “unravel in the U.S. as it has every other time it has been tried from Weimar Germany to Robert Mugabe’s Zimbabwe.”
Burnham’s words are sure to send another ominous chill through markets already beset with paranoia following a drop of 1000 points on the Dow Jones since its height in December. Global markets are also getting crushed with the Nikkei falling over 4% yesterday and European markets also suffering drastic downturns.
Source: BBC News - HSBC imposes restrictions on large cash withdrawals
A recent spate of banker suicides has stoked fears that a major financial crash could be just around the corner, one indication of which could be banks like HSBC imposing capital controls on customers attempting to withdraw larger sums of money.
Source: Russian Bank Halts All Cash Withdrawals | Zero Hedge
Last week, Russian lender ‘My Bank’ also temporarily banned all cash withdrawals.
OOO and dont forget about this...
Source: MEANS: U.S. economy on schedule to crash March 4, 2014 - Washington Times
Those wild and crazy Mayans put down their marker that the end of the world would occur on Dec. 21, 2012 — about two months from now. There is, of course, some small chance that they might be right. On the other hand, there is a very large probability that the real end of the world will occur around March 4, 2014.
The doomsday clock will ring then because the U.S. economy may fully crash around that date, which will, in turn, bring down all world economies and all hope of any recovery for the foreseeable future — certainly over the course of most of our lifetimes.
As Mac Slavo highlights, Grady Means, economist and advisor to Vice President Nelson Rockefeller, predicted that the 4th of March 2014 would be the date on which the economic collapse accelerated, followed by, “A run on the bank (that) will start suddenly, build quickly and snowball.”
So the question is, do you trust something that you do not have control over??? I DONT!!!
Remember we do not OWN our Federal Reserve Note's the Private Bank does....
So if they want there notes back they can take them back...
And if you Bank with CHASE here is some more info...
Source: Chase Revamps Cash Deposit Rules to Ease Money-Laundering Risks | Fox Business
Source: Chase Bank And New Cash Deposit Rules - JPMorgan Bank and Trust Company, National Association
I was wondering if anyone has encountered what is going to be the new rules for "any" bank cash deposits as of March 1, 2014? I just returned from my local Chase Bank to deposit a small amount of cash for my daughter into her checking account since she knows I go several times a week doing my own banking. It saves her a trip to the bank and they have always deposited the money without a problem. Today I was told that they received a letter from the Federal Government stating they can no longer accept cash deposits "of any amount" from anyone except the person who owns the account as of March 1, 2014. They claim it is due to trying to catch people who are money laundering . I told the teller when I deposit for my daughter it is usually only one or two hundred dollars in cash and it is usually for Christmas or her birthday presents. I thought money laundering was for thousands of dollars of cash. So in the future if she or anyone wants to get someone else to deposit cash in their account, it can no longer be done after 3/1/14 even if it is her own money. They will have to go to the bank themselves and deposit the cash.
The Chase rep said all banks may not be doing this as fast as Chase is but Chase must be very compliant with all Federal laws. Could it be because they are in so much trouble that the government is keeping a closer eye on what is going on at Chase Banks? This is a very innocent thing I was doing as a favor to my daughter and I really resent being now treated like a "money launderer" because others may be abusing the banking system. Just wondered if anyone else has been informed about this new "rule" to be enacted soon. Thanks.
I was at a CHASE and they said the same thing to my wife (she only cashes her check there cuz of here work uses CHASE)
So anyways what do you guys think???