Bank Runs Feared

[Riot]

Originally Posted by dellinger63

You just don't get it. In your opinion the economy has hit bottom and we're coming back. Get a clue!

Well, thanks for trying to tell me what I think, but in my opinion the economy has hit bottom, but it will be a markedly longer than usual haul back, and there is still a real possibility of a significant double dip.

That said, the "Move your money" campaign (move out from the big, bailed out banks) appears to have had some success.

[dalakhani]

Okay, I am going to feed into the hysteria. Bank runs are indeed very possible...if the government takes off the respirator.

Banks can make money right now because of the steep yield curve. Consumers and businesses can still make payments on adjusting rates because the adjustments are in many cases driving payments DOWN. Now what happens if the government stops intervening and yields start to climb? It doesnt take a rocket scientist to see how the dominoes will fall.

The US will do everything in its power to keep rates low for as long as the eye can see. A rise in rates will be devastating to the economy regardless of what bernanke or anyone says. We are buying time right now...and we need a lot of it to fix this mess.

So has the economy hit bottom? I think there is validity to the statement that we were as close as can be in the fall of 2008 without it completely toppling. Could we be there again?

Rates are going to have to stay low and the government is going to keep having to play a large role in our economy. Unless of course there is a better plan. If so, Im all ears.

[Riot]

Originally Posted by dalakhani

Now what happens if the government stops intervening and yields start to climb? It doesnt take a rocket scientist to see how the dominoes will fall.

Hey, finally a free-market economy, just as many here want

[randallscott35]

Originally Posted by dalakhani

Okay, I am going to feed into the hysteria. Bank runs are indeed very possible...if the government takes off the respirator.

Banks can make money right now because of the steep yield curve. Consumers and businesses can still make payments on adjusting rates because the adjustments are in many cases driving payments DOWN. Now what happens if the government stops intervening and yields start to climb? It doesnt take a rocket scientist to see how the dominoes will fall.

The US will do everything in its power to keep rates low for as long as the eye can see. A rise in rates will be devastating to the economy regardless of what bernanke or anyone says. We are buying time right now...and we need a lot of it to fix this mess.

So has the economy hit bottom? I think there is validity to the statement that we were as close as can be in the fall of 2008 without it completely toppling. Could we be there again?

Rates are going to have to stay low and the government is going to keep having to play a large role in our economy. Unless of course there is a better plan. If so, Im all ears.

Let people continue their false sense of FDIC etc....Electronic bank runs have already happened when MM funds broke the buck back in Sept '08.

[Riot]

Originally Posted by randallscott35

Let people continue their false sense of FDIC etc....Electronic bank runs have already happened when MM funds broke the buck back in Sept '08.

Are you maintaining you'll never get FDIC insured money if there is a run on a bank? Yes, the bank may run out of cash and go broke,and you may not get your money that day, but you'll get your FDIC insured money back. You say no? Did people not get their FDIC money back with MM Funds? Or was that not FDIC insured money?

Seriously - I'm not willing to go back to the 1700's, with all of us carrying around bags of gold protected by our guns.

[randallscott35]

Originally Posted by Riot

Are you maintaining you'll never get FDIC insured money if there is a run on a bank? Yes, the bank may run out of cash and go broke,and you may not get your money that day, but you'll get your FDIC insured money back. You say no?

Seriously - I'm not willing to go back to the 1700's, with all of us carrying around bags of gold protected by our guns.

http://market-ticker.org/archives/19...-Accounts.html

[Riot]

Originally Posted by randallscott35

http://market-ticker.org/archives/19...-Accounts.html

Ah, I got you now - going back to the article within the one you quoted. Looks a really nasty fee scam to screw customers. But I still don't understand what this has to do with possible bank runs.

So buyer beware. If you are with Citi, you have a month and a half read the fine print on your accounts, and to take control and responsibility for your own financial well-being.

"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change."

And Citi says it applies only to Texas.

What is federal banking law regarding this type of stuff - Dala?

[randallscott35]

Originally Posted by Riot

Ah, I got you now - going back to the article within the one you quoted. Looks a really nasty fee scam to screw customers. But I still don't understand what this has to do with possible bank runs.

So buyer beware. If you are with Citi, you have a month and a half read the fine print on your accounts, and to take control and responsibility for your own financial well-being.

I will say anything is possible. The last year and a half should prove that.

[dellinger63]

Originally Posted by Riot

So buyer beware. If you are with Citi, you have a month and a half read the fine print on your accounts, and to take control and responsibility for your own financial well-being.?

and if you had followed your own advice and applied it to reading the fine print on your health insurance policy there would be a lot less bitching out of you.