I wonder how many folks have withdrawn all their cash in fear of Monday?

[bigtree]

I haven't seen ANYTHING that would cause me to take that action myself, but I wonder if that's occurred on a widespread enough level to have some sort of impact on the credit market. What would be the effect of such a run on the banks -- even a mild one?



edit: changed 'from ATMs" to just 'cash'

[LiberalFighter]

1. If they withdrew everything via their ATM then they didn't have much in the bank.

[bigtree]

4. right

It wouldn't be a catastrophe . . .would it?

[LiberalFighter]

27. They were already at that level before this happened.

[rainbow4321]

14. Most banks have a 24 hour limit on how much you can withdraw from an ATM

Mine is $500 in a 24 hour period. For most account owners it would probably be more worth just actually going to the bank to get their money.

Some may not see another's account as having "much" but to that acccount owner it may be everything/alot.

[magellan]

2. But why would they? The bailout's going through

Happy days are here again!

Yeah, actually, it'll be a while before that song makes a comeback.

[texastoast]

8. I talked to my rep's office on Friday

and her aide said there was no legislation at this time. Has something changed?

[TechBear_Seattle]

3. That kind of panic is stupid and pointless

Assuming you are with an accredited bank, your money is guaranteed protected up to $100,000. If you have more than that in the bank, you are not going to pull it out via an ATM.

[bigtree]

5. right, they'd consider it's insured

[Selatius]

12. People panic all the time. True the FDIC ensures deposits up to 100K, but...

if multiple banks fail, then the FDIC may have trouble covering everybody's withdrawal requests. Unfortunately, the FDIC does not have infinite cash to maintain bank liquidity. A series of large bank failures can hit the FDIC pretty hard, and several have already failed, so if a nationwide run on smaller banks were to begin, the FDIC would be outgunned. This is why it is important that people don't panic, but irresponsible speeches by people like Bush that scares people do not help at all.

[knowledgeispwr]

6. I don't see why people would do that, and I hope it doesn't happen.

We don't need panic.

[bigtree]

9. I was thinking that it might be an impulse, a small defensive move

by folks who can't get a hold of any notion beyond banks are in trouble.

[Mojorabbit]

7. I pulled 5 grand

from the bank on Thurs as a just in case measure. Bank holidays have happened in the past. If nothing else it is two months of mortgage payments/or cash in hand available and I plan to put it back in when everything settles down.

[bigtree]

11. that's what I thought some folks might do

I wonder what the figures are on those types of withdrawals in the past few days?

[Mojorabbit]

28. I have read a lot about the great depression

I think probably my bottom line is I don't have much trust in Congress to get this right.I think they will come up with a half assed compromise that will ultimately fail.

[FirstLight]

10. i don't have much, but i don't trust the FDIC

you think they are gonna have any money left after all these dealings? not

i have cash, i cashed my paycheck, i left only $5 in my accounts... but that is almost normal, since rent suks me dry anyhow.

[bigtree]

13. lol

. . . the only thing I have in is what's left after my mortgage.

[Anywho6]

15. Well, I cashed my $900 unemployment check Thursday...

...instead of depositing it as usual and withdrew the max for my partner from the ATM so we would have plenty of cash on hand. It was pretty disturbing when I walked into the Wells Fargo (where I have banked for the 10 years I have lived in CA) and there were several supervisor-type people milling around in the busy lobby and, as you walked in the door, you were asked by a person with a clipboard if you were cashing a check or depositing. It made my stomach tense and I definitely had a feeling of dread.

Afterward, I called my mom and asked her to go to the bank on Friday and take out at least a few hundred dollars just in case. She told me, "That's exactly what they're telling people NOT to do." I told her, "And you're still believing 'them'? Please just do it. If you don't need it within the next week or two, you can out it back." I explained to her that the concern is that people with millions are pulling their money out of banks and investing in treasuries because of the $100k FDIC limit.

[billyoc]

17. $900?!

:wtf: Unemployment max in New York is $405!

:rofl:

[Anywho6]

23. Yes, here it is $450 a week n/t

[billyoc]

24. ohoh, I thought that was for a one week check.

:hi:

[bigtree]

18. wow. so, a great deal of apprehension there

And the small amount of cash you have makes it easy to withdraw and handle.

Now, here's where I should tell you that that action is just what banks are hoping to avoid. Where's Jimmy Stewart?

[Anywho6]

25. At this point, I don't give a rat's arse about what the BANKS are hoping

Time to take care of me and mine at this moment in time.

[bigtree]

26. of course, you're worried about your own first. that's natural.

[dkofos]

16. Hah, what cash??

[Contrary1]

19. I frequent a small Mom and Pop meat market a few miles from my house...

The owner told me that regular customers have been coming in all week with wads of cash to purchase
quantities of meat to freeze.

Most of these are older folks, and several have told him they have cleared out their bank accounts.

[bigtree]

20. that matches my wife's account at the small market where she works

some of the older folks stocking up and matressing their cash

[texastoast]

21. Diversifying?

A lot of these older folks had parents who went through the Great Depression and had the example of what happens when the banks fail. My folks went through it as young people with absolutely nothing. No jobs, but everything was very cheap. Bread was a nickel a loaf, but no one had a nickel.

My in-laws were children too. They tell stories of families in wagons pulling up to their farm asking for milk for babies. They allowed families camp on their land before "going on their way." People foraged for wild onions and boiled them for their dinner to feed those enormous families of uncontrolled numbers.

Experiences like that stay with you, and well should for the lessons we hope they teach.

[Selatius]

22. They still remember the Great Depression. When they spook, things are truly bad. nt

[lonestarnot]

29. Fucking A. I wondered when this thread would appear.