Your Money in the Banks

[Hobie]

One of the members in a forum put up a interesting post...

'Every night banks have to check their cash reserves and if they do not have enough to cover their expenses they are not allowed to open the next day..... to insure everyone is ok there are banks that loan banks enough daily loans that they pay back after opening to keep things going on....

Thursday night at midnight the Federal Reserve loaned the banks that make these loans 500 billion dollars.... literally nothing of this magnitude or even close to it has ever happened in the long history of fractional banking.... its a serious sign that something very serious is wrong...

Like toilet paper, cash will not be available to everyone should we all panic and want money at the same time.... worse than that the banks really don't have to give you the money in your account if they don't have it go give..... the money you have in your accounts is a debt the bank has..... but the actual money there belongs to them according to the law.

You are right... there is a lot more wrong than a virus here and the virus may well push the other problems over the cliff.' How Banks Lend $9 Out of Every $10 You Deposit

I just finished putting up solar panels for the house with some money I received. I now understand why God led me to do that and not store it in the bank.

 

[church mouse guy]

This economy is a house of cards. The debt is so great that no one knows how long this bubble will last. The Democrats refuse to stop borrowing and some of the GOP are big spenders also. We have almost never had a balanced budget since 1932 when the New Deal was started. I think Coolidge was the last one to pay down the debt and to cut federal spending.

 

[InTheLight]

'Every night banks have to check their cash reserves and if they do not have enough to cover their expenses they are not allowed to open the next day..... to insure everyone is ok there are banks that loan banks enough daily loans that they pay back after opening to keep things going on....

Thursday night at midnight the Federal Reserve loaned the banks that make these loans 500 billion dollars.... literally nothing of this magnitude or even close to it has ever happened in the long history of fractional banking.... its a serious sign that something very serious is wrong...

It's true that loans by the Federal Reserve at midnight made to banks so they have enough cash on hand has never happened. It didn't happen Thursday night at midnight, either. It certainly didn't involve $500 billion dollars.

Banks don't keep a certain amount of cash on hand to "cover their expenses." They keep enough cash on hand to meet their customer's needs for cash transactions.

What did happen was the US government has authorized $50 billion in emergency loan money to be made available to businesses in response to the coronavirus crisis.


Sent from my Nexus 7 using Tapatalk

 

[HankD]

hard cash via the ATM or tellers booth is not a big problem because the virus can "stick" to the money.
CASHPHOBIA
I haven't heard of any bank holidays even in Italy. Yet.
Cards are best.

 

[David Kent]

You assume that the paper money you get from a machine is worth more than toilet paper. It is just an iou and iou's are only worth anything if they are honoured.

 

[HankD]

You assume that the paper money you get from a machine is worth more than toilet paper. It is just an iou and iou's are only worth anything if they are honoured.

no i dont assume anything David.
I understand the global monetary system of fiat money and how to protect whatever wealth I possess.
Seems you do also.

 

[Baptist in Richmond]

You assume that the paper money you get from a machine is worth more than toilet paper. It is just an iou and iou's are only worth anything if they are honoured.

Well, at least the paper money. If you have a "Walking Liberty" coin, at least it is worth the ounce of silver used to make it..... assuming the silver still has value.

Regards,
BiR

 

[Hobie]

Well, I just came from the bank, and they are limiting how much you can take out. But its not official, so may just be managers discretion, we shall see...