They’re going to nationalize the big banks — the choice is being made by the reality of the situation. The Administration is in denial because letting on that it’s about to happen will drive the stock prices of the banks to zero. (So it will happen on a weekend.)
My question. All my investments are in cash. Where should I put the cash?
I realize FDIC protects my deposit accounts, but this is going to be messy and unprecedented and go on for who knows how long. And I need to worry about something else now that Sweetie Reid is over his virus.
I know this one!
Keep your money in FDIC-insured accounts at levels safely below the insurance limit, which is $250,000. If you’re a nervous Nellie, spread it out over a couple of banks.
When banks are taken over by the FDIC, it happens on weekends not because of the stock market, but because it gives the FDIC team time to close the books and re-open a fresh set, switch systems, and get everything in order to open Monday morning. The goal of the operation is: no disruption. Disruptions, after all, are what inspire messiness like bank runs.
I don’t know of any cases in recent history where banks closed, Depression-style, for a period of days and weeks. Maybe there are some, but there aren’t many.
My bank was recently taken over by another bank at the behest of the FDIC. It was fairly big news around here, and I kept waiting for some kind of communication — a letter, an email, something in my online banking account — but nothing happened. (Online banking went down for a few hours, but it could have been routine maintenance.) Everything has been perfectly normal ever since. I’ve noticed, in a couple of months, two changes: the new bank’s name is now included with the old bank’s on the junk mail they send us, and my ATM card works for free in the new bank’s ATMs.
So: stay under the FDIC limit, put your money in a couple of banks if you’re feeling extra careful, and maybe hide $500 in cash somewhere I can find it easily when I sneak into your house. Under your mattress is good, but anyplace cliche will do.
Have you thought about under you matress?
It doesn’t matter what bank.
With all the government spending inflation will eat up all your money before the bank can fail.
Buy gold.
Tom, it’s a long way to drive for $500.
John, I can’t, the guns are under the mattress.
Ephraim, I never know whether you’re serious or not.
Some guy on my Twitter feed keeps yammering about comic books – they always appreciate.