Posted on 01/25/2013 3:30:02 PM PST by Nachum
US Federal Reserve is reporting a major deposit withdrawal from the nation’s bank accounts. The financial system hasn’t seen such a massive fund outflow since 9/11 attacks.
The first week of January 2013 has seen $114 billion withdrawn from 25 of the US’ biggest banks, pushing deposits down to $5.37 trillion, according to the US Fed. Financial analysts suggest it could be down to the Transaction Account Guarantee insurance program coming to an end on December 31 last year and clients moving their money that is no longer insured by the government.
The program was introduced in the wake of the 2008 crisis in order to support the banking system. It provided insurance for around $1.5 trillion in non-interest-bearing accounts with a limit of $250,000. It was aimed at medium and small banks as the creators of the program believed bigger banks would cope with the crisis themselves.
So the current “fast pace” of withdrawal comes as a surprise to financial analysts because the deposits are slipping away from those banks which supposedly were safe. Experts expected savers in small and medium banks would turn to bigger players come December 31.
(Excerpt) Read more at rt.com ...
No.
Thanks.
PS: All the food and supplies will be purchased by the ones who have gold...
No, all the gold will be purchased by the ones who have the food and supplies. It is hard to eat a gold brick; better to have brick cheese.
At less than 1% interest, I feel more secure with my cash in my safe.
At less than 1% interest, I feel more secure with my cash in my safe
We are doing the same a few thou at a time. Screw the banks.
You won't hurt them by pulling out a few thou.
.
Friday news dump.
.
Say, that’s great idea! Thanks for the tip.
People are withdrawing fiat dollars and buying gold and silver.
Monetizing the debt potentially will lead to hyper-inflation...
January 24, 2013
‘Fed’s Holdings of U.S. Gov’t Debt Hit Record $1,696,691,000,000; Up 257% Under Obama’
http://cnsnews.com/news/article/fed-s-holdings-us-govt-debt-hit-record-1696691000000-257-under-obama
I imagine the majority of the deposits are quickly withdrawn as most folks are living pretty close to the bone and don’t leave much sitting in the bank for very long.
The article doesn't agree.
"pushing deposits down to $5.37 trillion"
I don’t understand why banks have to know why, but the bank here asked about a new tractor and again another piece of household equipment. Those questions were never asked at another location in years past.
That would be us! $400.00 here for car repairs; $500.00 there for tuition; another $$$ for the son who recently graduated from college and has no job prospects... Hope we have enough saved up to pay our income taxes come April...
Should we suffer a major banking collapse, all digital cash and money markets will vanish. No time for a run to the Bedford Falls S&L for greenbacks.
A tall stack of small bills hoarded in advance of the rush. A recommendation only. It might buy a little more time. Nothing more.
That would be us as well. Hubby and I were living very comfortable; until everything went up. Not only are our expenses keeping us spending more than ever, all of our kids need help when they have an emergency. Our kids are all employed in what used to be considered decent jobs too. It is getting crazy out there.
Been accelerating prepping purchases. Mostly little stuff in small quatities. Might have to go bigger on some things. Hope any trouble doesn’t happen until it gets warmer.
Germany wants ALL of its gold from France before it gets “nationalized” (ie., stolen) by the communists.
I guess Germany has the same fear with the US.
Same here. Every time I go to Walmart I grab 8 - 10 cans of Campbells Chunky soups. At $1.50/can, it's hard to go wrong. Each one is a meal, and there's a ton of varieties. I get a lot of the chicken/sausage gumbo and beef barley. The old fashioned vegetable soups are good, too.
(( ping ))
Check this out.
Out of curiosity, for people who have to make payrolls,...how do you make ends meet when:
1) The Fed IRS decides they aren’t going to even start processing Fed Income Tax returns until after Jan13.
2) Computer fraud and identity theft wipes out your accounts except for a pittance.
3) Bank policy refuses to freeze accounts which have fraudulent withdrawals being charged against them.
4) Emergency funds placed in the accounts after suffering identity theft are then frozen and removed by the banking institution to pay off the fraudulent withdrawals.
5) State Income Tax procedures are delayed because the state refuses to post 2012 income tax forms until after Jan13.
Is it any wonder other forms of liquidity aren’t being removed out of the system?
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