Could you be FORCED to leave your money in a bank?

[Missourian]

One prominent investor says he foresees this regulation on the horizon...

Hendry said that he could imagine the instatement of a new regulation that might prevent people from withdrawing their money.

“My fear -- and I do not say this lightly -- given the present peril with regard to the magnitude of losses on security portfolios held within predominantly the regional banks, you have to cast your mind back to 1934 and the Gold Reserve Act,” Hendry said. “I can actually conceive of a federal or treasury rule coming in and saying ‘for the next 180 days, you can’t pull your money out of the banking sector.’”

https://www.thestreet.com/money/notorious-investor-has-dire-prediction-for-people-with-money-in-banks

From a certain perspective I can see the utility of this kind of regulation. People are panicky...and just rumors of a collapse can become self fulfilling prophecy...

On the other hand...seems awfully authoritarian...

What are your thoughts?

 

[Oddball]

That's what a centralized digital currency is all bout.....And the pure despotism of that only begins there.

 

[Votto]

That's what a centralized digital currency is all bout.....And the pure despotism of that only begins there.

Right, digital currency always belong with the state, you never own it

You then hope the government lets you use it.

 

[OhPleaseJustQuit]

Right, digital currency always belong with the state, you never own it

You then hope the government lets you use it.

.

That's why the dollars have been slowly marching their way out of my bank account and into real tangible wealth.

.

 

[Esdraelon]

Right, digital currency always belong with the state, you never own it

You then hope the government lets you use it.

And that you can suffer through the demands of some unelected bureaucrat who has control over how you are allowed to spend it. Too many people aren't paying attention. With our debt load, adding about 1-2 $T more per year, and the instability in the system it causes, a collapse is on the way. I expect DC will allow people to suffer and see exactly how bad it CAN be, then offer CBDC as their "salvation".
Nice of them, eh?

 

[Harpy Eagle]

One prominent investor says he foresees this regulation on the horizon...

Hendry said that he could imagine the instatement of a new regulation that might prevent people from withdrawing their money.

“My fear -- and I do not say this lightly -- given the present peril with regard to the magnitude of losses on security portfolios held within predominantly the regional banks, you have to cast your mind back to 1934 and the Gold Reserve Act,” Hendry said. “I can actually conceive of a federal or treasury rule coming in and saying ‘for the next 180 days, you can’t pull your money out of the banking sector.’”

https://www.thestreet.com/money/notorious-investor-has-dire-prediction-for-people-with-money-in-banks

From a certain perspective I can see the utility of this kind of regulation. People are panicky...and just rumors of a collapse can become self fulfilling prophecy...

On the other hand...seems awfully authoritarian...

What are your thoughts?

Is this the same guy you posted that said the market was going to crash in 60 days...70 days ago?

 

[Missourian]

Is this the same guy you posted that said the market was going to crash in 60 days...70 days ago?

Did you listen to him?

 

[Harpy Eagle]

Did you listen to him?

Of course not, I am not a rube like you.

 

[Missourian]

Of course not, I am not a rube like you.

Then what are you bitchin' about?

 

[Harpy Eagle]

Then what are you bitchin' about?

I am not bitching, I am mocking you and your rubeness

 

[Missourian]

I am not bitching, I am mocking you and your rubeness

Sounds like bitchin' to me.

I suggest if you are that upset about that guy being wrong...you should send him a very stern letter.

 

[Augustine_]

One prominent investor says he foresees this regulation on the horizon...

Hendry said that he could imagine the instatement of a new regulation that might prevent people from withdrawing their money.

“My fear -- and I do not say this lightly -- given the present peril with regard to the magnitude of losses on security portfolios held within predominantly the regional banks, you have to cast your mind back to 1934 and the Gold Reserve Act,” Hendry said. “I can actually conceive of a federal or treasury rule coming in and saying ‘for the next 180 days, you can’t pull your money out of the banking sector.’”

https://www.thestreet.com/money/notorious-investor-has-dire-prediction-for-people-with-money-in-banks

From a certain perspective I can see the utility of this kind of regulation. People are panicky...and just rumors of a collapse can become self fulfilling prophecy...

On the other hand...seems awfully authoritarian...

What are your thoughts?

The oligarchs who control the nation's capital will do whatever it takes to protect the oligarchs that control the nation's capital

 

[leftwinger]

With Negative interest rates to fund the over-spending.
Including $600B debt interest annually.

 

[Missourian]

That's what a centralized digital currency is all bout.....And the pure despotism of that only begins there.

Right, digital currency always belong with the state, you never own it

You then hope the government lets you use it.

I haven't done the deep dive into centralized digital currency yet.

 

[Missourian]

I am not bitching, I am mocking you and your rubeness

You should go back and read the OP of that thread...

Missourian said:

"Don't have anything to add to that...not a stock expert. It just feels very very Black Monday-esque.

The title of that article is a little misleading...McDonald actually says "best chance" if the S&P earning fail to meet expectations.

I wasn't around in 1929...but I was in 1987.

You experts can discuss the ins and outs of the article...I'm just going to read the replies."

---

The thread garnered over 300 replies, which I would say makes it a successful discussion...the second highest on the front page of the Stock Market Forum.

You understand that this is a discussion message board, right?

So, what exactly is your problem?

 

[Flopper]

One prominent investor says he foresees this regulation on the horizon...

Hendry said that he could imagine the instatement of a new regulation that might prevent people from withdrawing their money.

“My fear -- and I do not say this lightly -- given the present peril with regard to the magnitude of losses on security portfolios held within predominantly the regional banks, you have to cast your mind back to 1934 and the Gold Reserve Act,” Hendry said. “I can actually conceive of a federal or treasury rule coming in and saying ‘for the next 180 days, you can’t pull your money out of the banking sector.’”

https://www.thestreet.com/money/notorious-investor-has-dire-prediction-for-people-with-money-in-banks

From a certain perspective I can see the utility of this kind of regulation. People are panicky...and just rumors of a collapse can become self fulfilling prophecy...

On the other hand...seems awfully authoritarian...

What are your thoughts?

In certain situation banks can hold your money for longer periods than you might think. Federal regulations allow banks to hold deposited funds for a set period, meaning you can't tap into that money until after the hold is lifted. But the bank can't keep your money on hold indefinitely. Federal law outlines rules for funds availability and how long a bank can hold deposited funds. How long they hold it depends on type of account, and the emergency. Only if the emergency effected the entire bank system would such draconian rules as bank holidays and extended holds up to 30 days be applied. However since the FED can borrow money from the treasury, those measures would probably not be needed. However, if the nation's spending limit has been reached and congress is allowing defaults, you better have goods stored away in your bomb shelter because it would be a rough ride.

Keep in mind that most banks only keep about 10% of their funds in reserve. The rest is loaned out. In an emergency where large numbers of depositors demand their money, the bank would do overnight loans from the Fed. If overnight loans are not sufficient to cover withdrawals, the banks are allowed to borrow from other banks. And if the banks loans are not judged good enough security for the loans, then the Fed steps in and makes good deposits in accordance with FDIC insurance regulations. By this time the bank stockholders will have lost just about everything. Then the bank will be sold off to the highest bidder. In the Silicon Valley bank failure, bank shares in a short period went from over $125 to about $2 a share. I believe Chase or Wells Fargo purchased what remained of the bank for somewhat less than $2 a share. Although bank depositors are protected the shareholders in the bank can lose everything.

 

[The Duke]

And that you can suffer through the demands of some unelected bureaucrat who has control over how you are allowed to spend it. Too many people aren't paying attention. With our debt load, adding about 1-2 $T more per year, and the instability in the system it causes, a collapse is on the way. I expect DC will allow people to suffer and see exactly how bad it CAN be, then offer CBDC as their "salvation".
Nice of them, eh?

Cash is freedom, people!

 

[iku]

Any update? Sure glad the stock market did not crash.

 

[OhPleaseJustQuit]

In certain situation banks can hold your money for longer periods than you might think. Federal regulations allow banks to hold deposited funds for a set period, meaning you can't tap into that money until after the hold is lifted. But the bank can't keep your money on hold indefinitely. Federal law outlines rules for funds availability and how long a bank can hold deposited funds. How long they hold it depends on type of account, and the emergency. Only if the emergency effected the entire bank system would such draconian rules as bank holidays and extended holds up to 30 days be applied. However since the FED can borrow money from the treasury, those measures would probably not be needed. However, if the nation's spending limit has been reached and congress is allowing defaults, you better have goods stored away in your bomb shelter because it would be a rough ride.

Keep in mind that most banks only keep about 10% of their funds in reserve. The rest is loaned out. In an emergency where large numbers of depositors demand their money, the bank would do overnight loans from the Fed. If overnight loans are not sufficient to cover withdrawals, the banks are allowed to borrow from other banks. And if the banks loans are not judged good enough security for the loans, then the Fed steps in and makes good deposits in accordance with FDIC insurance regulations. By this time the bank stockholders will have lost just about everything. Then the bank will be sold off to the highest bidder. In the Silicon Valley bank failure, bank shares in a short period went from over $125 to about $2 a share. I believe Chase or Wells Fargo purchased what remained of the bank for somewhat less than $2 a share. Although bank depositors are protected the shareholders in the bank can lose everything.

.

Slowly taking everything out of savings so as not to set off any alarms, I pay cash for a lot of stuff if I know that the person appreciates it. My doctor says "Cash is King" and thanks me every time.

.

 

[iku]

.

Slowly taking everything out of savings so as not to set off any alarms, I pay cash for a lot of stuff if I know that the person appreciates it. My doctor says "Cash is King" and thanks me every time.

.

Medicaid? I only pay with cash for guns.