Unchained Preppers
General Category => News & Politics => Topic started by: JoJo on June 28, 2017, 08:24:52 PM
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On Fox Business Network today they said big banks have enough money on hand if a recession occurs. Does this mean if there is a run on the banks they will be able to give you your money or????
Finance is definitely not one of my big points.
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not my forte ether but - the FDIC will protect you from most typical bank runs.
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give this a read - a banks blood is its cash flow. cash reserves are a bulwark against bad paper and low deposit rates.
http://www.investopedia.com/terms/b/bank-stress-test.asp (http://www.investopedia.com/terms/b/bank-stress-test.asp)
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I was thinking more on the line of a major financial collapse, if the banks having so much cash on hand would that prevent one.
There's talk of President Trump going back to the gold standard.
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in a major collapse money has no value - so there's that :) a big 'depression era' collapse means the money stays in the bank - no one can take out a loan. the bank benefits by being able to stay in business even with all the write downs.
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Trump probably doesn't want a gold standard. (my opinion) he does a lot of his work by leveraging loans and investors capital - it isn't easy to do that kind of business in a world that uses money rather than e-currency.
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Thanks Kbop makes sense now.