Bank Failures. Not my wheelhouse.. Questions

[MurphyGuy]

So we're seeing a few banks fail due to rising interest rates and bad bank investments.

So here's my question. If the FDIC insures every account up to $250,000, would a person with $1,000,000 get all their money back if it was split into 4 different accounts?
Looks like the answer is yes.. so why would anyone ever put more than 250 into a single account?

EDIT>.. The answer is no.. it's not per account, it's per depositor.

 

[aenyc]

Per depositor.
If you and wife are on joint acct you are "protected" up to 500,000.
But as i said, there wont be a "run" on the bank. They will print all the needed "cash".
The robbery will be via paying $150 for eggs and $100 for milk

 

[MurphyGuy]

Per depositor.
If you and wife are on joint acct you are "protected" up to 500,000.
But as i said, there wont be a "run" on the bank. They will print all the needed "cash".
The robbery will be via paying $150 for eggs and $100 for milk

I can make my own eggs and my neighbor has their own milk. Chickens and cows, and in two hours I could easily add pigs to the pig pen.

The people who are screwed are in the city, us country folks would be just fine.

 

[time2roll]

So far the losses on the recent failures have been minor and all depositors will get all their money.
Even those with millions deposited will not lose a penny.
Losses are paid for by money collected from all banks as part of the FDIC reqirements.

Stock holders get nothing unless the bank liquidates for more than the depositors collect.
Top management team loses their employment.

 

[klystron]

Per depositor.
If you and wife are on joint acct you are "protected" up to 500,000.

And also, certain differrent account types - IRAs are treated separately from normal deposit accounts. You and your spouse can have a joint CD insured up to 500k and each a separate IRA insured up to 250k, all at the same institution, for a total of 1 million FDIC insured. POD accounts also have their own rules.

 

[aenyc]

I can make my own eggs and my neighbor has their own milk. Chickens and cows, and in two hours I could easily add pigs to the pig pen.

The people who are screwed are in the city, us country folks would be just fine.

I can almost guarantee you that if they succeed in CBDC schemes, even the country folks will be screwed pretty badly. Just wait until they need fuel to power up the farm machinery and to keep warm in winter.
The whole prepper bravado only works under certain limited circumstances.

 

[MurphyGuy]

I can almost guarantee you that if they succeed in CBDC schemes, even the country folks will be screwed pretty badly. Just wait until they need fuel to power up the farm machinery and to keep warm in winter.
The whole prepper bravado only works under certain limited circumstances.

Cash is not going to go away anytime soon.. not in my lifetime and not in yours.

While big business may adapt it, and even individuals under certain circumstances, cash will still be here.

My "prepper bravado" has reduced my electric bill to a $7 month meter charge, has completely eliminated my heating bill, and if I choose to do so, could reduce our food bill by 90% or more.

I own two homes and have zero debt.

What other people choose to do is their business. If they wish to invest their money into fast food, expensive phones, and nearly useless televisions, then I support their freedom of choice.

If a digital currency works, then what's the problem? That the government can track you? They can do that now with your credit/debit card... (Please tell me you're not foolish enough to have a debit card..)

We already have Western Union and a dozen other electronic payment systems.. Bit coin, Paypal, etc etc. Pretty sure none of these people are going to be happy with a government backed electronic payment system however.. that's going to bring some serious pain to some very big companies.. might even put paypal out of business.

 

[Bob B]

If a digital currency works, then what's the problem? That the government can track you? They can do that now with your credit/debit card... (Please tell me you're not foolish enough to have a debit card..)

It's not the digital currency itself that is the problem .... it is when it is all controlled by one central bank.
Take a look at how China has total control of the people with their digital currency ... social credits and debits .... You step outside their lines and your funds evaporate .... this is what they want for us, and if you listen to them talk, they aren't trying very hard to hide it.

 

[D71]

I went to a store today the sign out front said cash only. The cashier said the bank card readers stopped working Friday evening. At all the stores in their chain. Imagine that. A whole chain of stores no way to do credit or bank cards …. Cash only. Started last friday. Connected hahahaa

 

[time2roll]

It's not the digital currency itself that is the problem .... it is when it is all controlled by one central bank.
Take a look at how China has total control of the people with their digital currency ... social credits and debits .... You step outside their lines and your funds evaporate .... this is what they want for us, and if you listen to them talk, they aren't trying very hard to hide it.

Have a link to that? I understand the social credit rating and never heard of actual legally earned cash deposit disappearing as a consequence.

 

[D71]

“The US dollar could go digital. Here’s what you need to know​

Catherine Thorbecke, CNN Business
Updated 11:28 AM EST, Fri March 11, 2022”

https://www.cnn.com/2022/03/11/tech/us-digital-dollar-cbdc/index.html

biden eo for digital 14067

Government-backed digital money to represent $213B in payments by 2030

Digital currencies backed by government banks still face a mountain of challenges before they'll be ready for prime time, but 114 countries are involved in various projects, either in the planning stage or all-out pilots.

www.computerworld.com

if you don’t think this will be bad you are crazy. They will have complete access to control you via your money.

Why do you want to give up your freedoms

 

[Bob B]

Have a link to that? I understand the social credit rating and never heard of actual legally earned cash deposit disappearing as a consequence.

I don't have a link handy at the moment .... If I run across a good article, I will post a link ..... but as an example of how financial pressure can be applied even without a central bank, look at what Trudeau did in Canada to kill the truckers strike.
The protesters were identified .... beginning with their leaders ... and their bank accounts were confiscated .... more and more financial pressure was put on .... even confiscating the accounts of people who donated to the protester ...til the protest collapsed

You could argue one way or another if the protest was a good thing .... just assume for a moment it is a protest you are in favor of ..... and was shut down in this way.

I'm going on memory from what happened, so I don't have a link to that either, but it can easily be found..

 

[MurphyGuy]

It's not the digital currency itself that is the problem .... it is when it is all controlled by one central bank.
Take a look at how China has total control of the people with their digital currency ... social credits and debits .... You step outside their lines and your funds evaporate .... this is what they want for us, and if you listen to them talk, they aren't trying very hard to hide it.

Here in the USA, they can freeze your bank account, credit card, and any other financial asset you have as well.

How is what you're describing any different?

 

[time2roll]

IIRC that money flow stopped because it was regulated donations to the protest... not legally earned deposits being confiscated.
The protests were made without permit and were interfering with legal and necessary business activity.
As the protests continued into the US it was quickly determined it was all just a ploy to falsely represent the issue and drum up donations for profit not for any real cause.

MAGA has been under investigation for these same issues. Promising to collect money for a cause and spending for personal enrichment. This is illegal.

 

[MurphyGuy]

It's not the digital currency itself that is the problem .... it is when it is all controlled by one central bank.
Take a look at how China has total control of the people with their digital currency ... social credits and debits .... You step outside their lines and your funds evaporate .... this is what they want for us, and if you listen to them talk, they aren't trying very hard to hide it.

More:
They can take your home here too. Thanks to the republicans..
It was a conservative supreme court that ruled in 2005 (Kelo v. City of New London) that the government could take property from one private party and give it to another private party, which pretty much made property rights zero.

They can also take any cash you have without ever charging you with a crime.

So how is any of what you said different than what we already have?

 

[D71]

IIRC that money flow stopped because it was regulated donations to the protest... not legally earned deposits being confiscated.
The protests were made without permit and were interfering with legal and necessary business activity.
As the protests continued into the US it was quickly determined it was all just a ploy to falsely represent the issue and drum up donations for profit not for any real cause.

MAGA has been under investigation for these same issues. Promising to collect money for a cause and spending for personal enrichment. This is illegal.

What has blm been doing with donated money? 1 member was caught buying houses and such rest goes in the kit to mess the democratic party. That is why they democrats took the knee and allowed the illegal riots and acts to fly. Money. Www.Actblue.com The blm claim marxist training. Communism in USA by Eisenhower’s Law so communism was outlawed.

Did you vote for Biden? Were you a squid They blm rioters should be locked up for years with no trial …. Then www.actblue.com money should be taken to pay the ppl’s family for loved ones killed or injured, rebuild, and repair everything they damaged all across the USA during riots. Everything they did was illegal.

 

[LeoThomson]

So we're seeing a few banks fail due to rising interest rates and bad bank investments.

It was just a bad investment for that bank, other banks where people are more stable, don't suffer from it. In the end it was not the lack of funds, it was the availability of the funds in the time frame (a run on the bank)

So here's my question. If the FDIC insures every account up to $250,000, would a person with $1,000,000 get all their money back if it was split into 4 different accounts?
Looks like the answer is yes.. so why would anyone ever put more than 250 into a single account?

EDIT>.. The answer is no.. it's not per account, it's per depositor.

You can deposit your money in different banks and different countries as well.

I think the big deposits (over 250k for example) should get a reduced amount back when the bank fails. And governments could put in some decent regulation so banks can be trusted to remain solvent. Hiding the money under the mattress is rather risky.

 

[LeoThomson]

2008–2011 Icelandic financial crisis - Wikipedia

en.wikipedia.org

 

[aenyc]

MurphyGuy, you clearly do not understand what CBDCs are and how they work.

Here is a very good presentation on the subject, but since you are not going to watch it I will summarize it here for you in a few sentences.

The biggest danger to CBDC is that is programmable money, down to the actual unit (like a single paper dollar). Each unit can have an expiration date (so they can dictate by what time it has to be spent or it will become worthless). Each unit can also be programmed on what you can and can not spend it (So for example they can specify that you can buy cricket legs but not chicken). Each unit can be geo fenced. For example, they will issue a lockdown order and limit travel to 5 miles. If you attempt to use the CBDC at a merchant that is located 6 miles from your designated origin it will simply not work for payment.
These are just very few most basic examples and i did not even mention things like "bail-ins" (there will never be a bank run because you can not put it under your mattress. Negative interest rates are super easy to implement (again you can not take the money out), etc etc etc.
But you keep dreaming buddy. Try not paying the property tax on your two fully paid out properties. You will then see who really owns it very very quickly.

Episode 433 – CBDCs: Beyond the Basics | The Corbett Report

www.corbettreport.com

What Is Programmable Money?

by James Corbett corbettreport.com October 15, 2022 There are 3 types of people in this world. There are those who read that SWIFT has "solve[d] the significant challenge of interoperability in cross-border transactions by bridging between different distributed ledger technology (DLT) networks...

corbettreport.substack.com

Also regarding your "difference question" - in your example taking your cash requires a significant expenditure of force (and thus money). They can not really realistically come to every door and take your cash under some BS pretense (they can do it to individual people that they percieve as a threat and they most definitely do that (Canadian trucker is a good example), however they know too well that they can not do it to everyone. Here is where CBDCs come in - refuse your latest vaxx booster, and few keystrokes, and you can no longer participate in most of society. No need to use force or spend money. Total and complete control over everyone

 

[aenyc]

Guess who benefited from the small bank collapse? The usual suspects

So consolidation is phase 1 of this project, makes total sense. Covid did a major blow to small and medium businesses, and this "crisis" will blow up small and medium banks. Very predictable stuff if you are paying attention.

BTW, anecdotal evidence, Chase is one of the few banks that still refuses to give decent rate on liquid deposits. While most banks now offer at least 3.5% on liquid deposits, Chase still offers 0.05%.

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

"Your CBDC currency will be issued based on pre-determined funding from one of 10 remaining banks working in partnership with the Treasury and Fed that customers can chose from. If you like your bank you can keep your bank."