Skip to comments.Are treasuries a way of avoiding the bank collapse?
Posted on 04/02/2013 6:39:00 AM PDT by E. Pluribus Unum
If I move my savings to a brokerage account and purchase 2-year treasuries (the shortest term available at my broker) would that at least protect me from having my money stolen by the banks?
When MF Global went bankrupt, those holding treasuries suffered haircuts as the segregated funds losses were divided equally among all the clients, no matter what the assets were. But, that was a commodities brokerage, not a stock brokerage. At a stock brokerage, you would have SIPC protection which does apply to cash, up to $250 k IIRC. (But, how many assets can SPIC afford to protect?)
No. At least MF Global says no. You used to be able to buy treasuries at the local Fed. I don’t think they do that anymore.
Probably less than the FDIC.
If you buy a safe and put all your savings in it, the government could confiscate it just because they consider large quantities of cash to be evidence of criminal acts.
Buy direct, cut out the middleman, your broker.
Not risk free though, you will be paid back with devalued dollars.
I would suggest to eat, drink, and be merry. For tomorrow you will die.
The currency either becomes worthless immediately ( not gonna happen) or loses value due to rapid inflation.
Much more likely could be a Cyprus-like scenario, when there is an extended bank holiday. Given that banks pay zip, nada, zilch in interest..you might feel better keeping more cash on hand..say 6 months worth..assuming you have a safe, and/or a safe, and fire-proof place at home to keep it..
Broader perspective..it makes more sense now to consider having a greater % of your assets in gold. ( I personally think the stock markets will correct at least 30% ( if not more) before the 2014 election..so again the question, if you own gold..is where to keep it...having physical possession of some ( if not all..depending on the amount..) makes more sense than ever now...again, assuming you have a secure place to keep it..
Having physical possession of any valuable asset is scary. If people see a safe being moved into your house, they know where to come.
You will retain your initial deposit, generally speaking. BUT every time the Fed injects $85b into the system, your money is devalued.
If your desire is to maintain “value” you should invest in real assets (land, precious metals ,etc.). If we suffer deflation, those assets will decline in price—but so will everything else.
When the system collapses entirely...it really doesn’t matter. You will own what you can protect or carry with you.
About the only financial organization worthy of some trust today is USAA. If anyone in your family is a veteran, you can sign up with them. They are run and operated by prior service military. Among other benefits:
1) Their auto and home insurance rates are lower than *any* other insurer. Some complaints, but far fewer than other insurers as well.
2) They offer tax free short, medium and long term muni bond funds. USTEX Tax Exempt Long-Term Fund, for example, maintained a 4.5-5% yield until the last year, when so many people have moved their money into it as a safe haven that its yield has dropped to its current 3.87% annual. Which is still a heck of a lot better than most taxable yields of twice+ that much, especially with the loss of low capital gains taxes.
Your assets - and your physical person - are the property of the Federal Government.
Many, many Republicans have voted for legislation upholding this concept, FATCA being the most egregious example, so don't look for help from them.
Under the existing system there is no way to protect anything you own from government confiscation, even your labor, if the government decides they are determined to have it. The only temporary respite lies in relative anonymity, but new mega-databases are breaching even that thin defense.
But history also teaches us that even the strongest systems come and go, in time. They'll turn on and destroy each other, as Rand showed in Atlas Shrugged, long before they will be able to bring their totalitarian Utopia into being.
If you buy a safe, and put your money it in, Obama stole over 30% so far by printing the value of the money in it away.
Pay off your morgage and all debts, that is money well invested.
Got that done years ago.
Like your tag...
The ultimate liberal Utopia is around the corner, this collapse is engineered to bring it in. The ultimate liberal leader will lead it, the Anti-Christ.
Wouldn’t it be better to pay off your mortgage with devalued future dollars?
treasuries and bank collapse in a mkt correction
Personally I think the only really safe things to buy are food, gold, silver and land.
Where do you keep it?
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