Jonty30 :"The biggest reason for the instability is because banks have extended themselves too far with making loans with your money."
Delta7 :"..Truist is in trouble.
Please read ALL your account disclosures,
USAA just had some concerning changes in withdrawal “ rules”.
It’s coming."
”A new study by Florida Atlantic University believes that 94 separate US banks are facing a significant risk of bank runs.
The at risk banks have all reported a 50% or higher ratio of uninsured deposits to total deposits.
Basically, they simply do not have the hard currency to shell out in the event of a panic. “
” Banks currently limit cash withdrawals under the pretense of money laundering and security.
They will ask all sorts of questions if you even TRY to withdraw your money.
They realize we are on the verge of a crisis in banking on a global scale. “
”The University’s Liquidity Risk from Exposures to Uninsured Deposits index found that BNY Mellon and John Deere Financial have a 100% ratio of uninsured deposits,
followed by State Street Bank (92.6%), Northern Trust (73.9%), Citibank (72.5%), HSBC Bank (69.8%),
JP Morgan Chase (51.7%), and U.S. Bank (50.4%). “
”The Federal Deposit Insurance Corporation (FDIC) has the power to shutdown a bank before a bank run occurs.
The FDIC is controlled by Congress and acts as a safety measure to protect insured deposits in the event of bank runs.
Deposits over $250,000 are not insured nor are mutual funds, annuities, life insurance, bonds, or stocks.
Uninsured depositors have experienced a mere 6% in losses over the past 16 years..”
”The FDIC relies on the Deposit Insurance Fund (DIF), which is backed by Washington.
Now, what happens when multiple large banks fail?
It was easy for the government to write off a few banks to brush the severity of the situation under the rug.
If everyone tried to withdraw their accounts at the same time, the government would not have the hard currency to back it.
This is one of the major reasons that we will see a conversion from hard currency to digital. “( Emphasis Mine)
”I have stressed that studies in ancient times as well as modern show that during a crisis you head toward DEFLATION as money becomes scarce,
the VELOCITY of money collapses, and people HOARD wealth – they do not spend it.
The US will experience a period of stagflation as GDP will decline as inflation soars.
Banks will begin to fail in Europe before it becomes a global contagion.”
(My Comment) : This is one of the reasons why commercial and neighborhood banks want to create digital currency.
They simply don't have the hard currency assets to cover a possible run on the bank.
The banks don't have the hard currency and the government would be more than happy to shift into digital currency which the government will control
and thereby control the spending habits, commercial enterprises, and digital currency availability to the populace.
In other words, government control of national assets.
Now ask yourself, do you trust Congress and government with your total resources, especially as exemplified by the last three and a half years Federal balanced budgets ?
Study Finds 75 Percent of U.S. Banks Didn’t Hedge Interest Rate Risk; Unrealized Losses on Securities $516 Billion at End of First Quarter
Lovely explanation. That’s basically it.
I’ve been using cash and stashing cash as much as I’ve been able to these past few years.
The ‘all digital currency’ chatter is very unnerving.