Bank Collapse

I was watching this video where this man claim that he is a bank teller who was being trained for a "bank emergency." He stated that he worked at the bank for three years and this was his first time training for this possible event. During an actual event, they would lock the doors and only allow three people in at a time. They would have armed guards and store a limited amount of funds due to safety issues. Can you imagine that people will go in 3 at a time peacefully? I doubt it. Are you storing up funds to have on hand when this happens?

 

Banks are just institutions that manage money, central banks print that money. Money is only a piece of paper with a speculative value in it, It's only worth what market tendencies establish. If banks crumble then only their clients will have problems, that will not mean at all the collapse of economy. 3 at a time is quite inconvenient and a poor way to
fix a crisis like that. The smartest move is to just divert the value to another currency easier to replicate.

 

Pardon me but I don't quite get it, that training for emergency. I am a bank employee for a long time and although my assignment is in the head office, I also have assignments in the branches. But I have to admit that I have no explicit knowledge of the emergency procedures in time of calamities or a break in. However, from what I gathered from my colleagues, an emergency procedure would really shut the door.

I'm really confused with the title. Do you mean bank collapse is a bank run where depositors are withdrawing in panic?

 

A bank emergency? Do you mean some sort of natural disaster that might motivate people to withdraw their money and buy up? Bank runs don't tend to happen as a result of things like that. The only other 'bank emergency' I can think of is just a bank run, which is a response to economic pressure and won't really precipitate any survivalist needs.

No reason to store funds for either event of that nature. For the latter, we've got debit cards and lines of credit. For the former, we don't have anything. Certain people are hoping that in the event of a financially incapacitating emergency, one so that all the banks fail and financial institutions as we know them are destroyed, gold and silver will become the new standard, but that doesn't make a whole lot of sense to me. Any sort of traumatic event that wipes out everything like that would leave a lot of people with almost no care for gold. You can't eat it. You can't get rich on it. It's much harder to find in the open air than when it was adopted as the basis of trade -- and even then there was time where there were significant lapses in the use of both gold and silver. We'd probably end up with a hybrid of a barter system and Virginia's old colonial system based on the value of a local crop (which might differ depending on the region).

 

There's much people could have learned from the Greek crisis if they were receptive. There is no guarantee that banks will always be open, their ATMS working 24/7. Same way people need to save enough money to last them six months, they should have about half of that money in cash.

That's long enough for a recovery if there is one and also long enough for looters who didn't have cash to seize what they need if a total collapse follows. So if you have enough for three months there's a high likelihood if things get worse that you may not need that money from then on.

 

Yes Corzhens. I believe this is what the article was indicating. I don't recall what scenario they were using other than something would cause people to want to take out their money. The article was stating that banks only have so much money it keeps in the branch.

 

I think cash will only be good to have for the first few days after a disaster, after that its going to be useful items and then as things stabilize I think precious metals an stones will start to gain value again. For me I would rather invest money in supplies for survival or precious metals, then I won't need to worry about this scenario too much.

 

Its not a far fetched idea for a bank to collapse. A stable looking bank almost went into receivership in my country after becoming insolvent and facing liquidity problems. This resulted in panic withdrawals after it emerged that the bank had escaped the notice of the central bank by manipulating their financial statements. They had to be bailed out by the central bank's emergency facility purposely established with such a scenario in mind.

 

Previously I believed that, considering what happened during the Great Depression, that anything close would ever be allowed to happen again. However, recently my paycheck was not direct deposited on the day it was due, and I found out that it wasn't just me or just my company, but it was a much more widespread event. I didn't know why, and couldn't gauge just how far it reached because it was not televised. We found out later in the day that, apparently, all of our financial information is nothing more than numbers in a computer file. The files sent to the Federal Reserve by the bank my company uses were somehow corrupted, along with several other banks, so the employees of any company using those particular banks did not get paid. We were told the glitch was in the Federal Reserve's systems, and not the banks. They did have it fixed by the end of the day, and we all received our pay the next day. In addition, we all received apology letters and $25 gift cards. That definitely scared me enough to want to begin keep cash on hand which I didn't do before.

 

What will in most probability happen is due to past failures and a few changes in banking rules ( you are no longer a depositor but are an unsecured creditor!)
The first bank to go belly up will shaft its unsecured creditors ( previously depositors) and others not wanting to get shafted will withdraw there deposits from
other banks so crashing a few other banks scareing any remaining depositors to empty there accounts crashing more banks!
2008 did not snowball out of control because most depositors believed there deposits were safe, and generally they were!

Not so now, with the quiet change in terminology creditors miss out and that is you!
The next crisis will be a whopper
I have removed all cash from my accounts and only keep enough in there to servive needs!
The rest is in cash under my bed! figuratively!
The interest they give you just ain't worth the risk!

Next time you are in your bank ask them to state your status! Depositor or unsecured creditor?
See if you get a short concise answer!

 

A stable looking bank almost went into receivership in my country after becoming insolvent and facing liquidity problems. This resulted in panic withdrawals after it emerged that the bank had escaped the notice of the central bank by manipulating their financial statements. They had to be bailed out by the central bank's emergency facility purposely established with such a scenario in mind.

 

Western banks are leveraged at over 31:1. Plus, many of their "assets" are in the form of derivatives. If real estate drops, the leveraging fiasco goes turbo. FSLIC and FDIC can only cover a tiny fraction of deposits. Bank runs will be shut down in a New York minute. Thinking about getting cash out, ha ha ha ho ho ha ha ha ha ho ha ha ha ho ho ha ha ha ha ho ha ha ha ho ho ha ha ha ha ho ha ha ha ho ho ha ha ha ha ho ha ha ha ho ho ha ha ha ha ho ha ha ha ho ho ha ha ha ha ho !!!

Cash could hold value for a few days after a collapse. You might buy-up some last-minute supplies, but you'll have to spend it quick before hyperinflation turns it back into ink-stained rag-paper. Cash = ephemeral = think barter, post SHTF

The U.S. Fed has been keeping a new script in mine storage (yes, just like the cheese storage going back to the 1980s), but this stuff will turn into cigarette paper pretty quick after issue even though troops will force merchants to take it ... at least for a while.

Speaking of barter and cigarettes, cigarettes will be future dollars. So will .22 LR ammo. So will ...

 

China PetroDollar

http://www.zerohedge.com/news/2017-06-01/chinas-next-step-destroy-dollar