Here’s an informative video that explains the risks inherent in banking with some of America’s biggest and most aggressive banks. The video does not allege that all banks are likely to file for bankruptcy. But it does suggest that the nation’s biggest banks (like Bank of America, JP Morgan, etc.) are so deeply ensnared by their “investments” in derivatives, that their bankruptcies are least possible, and perhaps inevitable.
In the event of such bankruptcies, bank customers will lose some or all of their deposits.
The video focuses on the risks associated with the biggest American banks. However, we can also speculate that if one or more of the biggest banks collapse, the financial consequences might be so “contagious” that the entire banking system (including local banks that are otherwise solvent) might also be temporarily paralyzed. If so, all depositors might be unable to access their funds for several days or weeks.
What do you suppose would happen to his country if the banking system was effectively shut down for just one week? No credit cards, no debit cards, no checks, no ATM or bank withdrawals. People would have to live for a week on just the cash they had in their hands or had squirreled away in their homes.
We could survive a week of such inconvenience, but it wouldn’t be fun. If the “inconvenience” lasted for several weeks or months, there’d be chaos.
The video concludes by suggesting that, in order to protect our deposits, every community should establish a new kind of local bank that keeps local depositors’ funds in the local community and prevents placing those funds into distant or foreign investment vehicles. That’s an interesting idea, but unlikely to be implemented in the near future.
I suggest that you: 1) consider how vulnerable some of our major banks are to bankruptcy; 2) decide how much of your wealth you’re prepared to risk in the American banking system; and 3) decide how much of your wealth that you’d like to protect by keeping it in or near your homes in the forms of cash, gold or silver.
I’m not suggesting that you close your bank accounts. I am suggesting that you keep a secret “stash” close to home in a form of money (cash, gold, silver) that could get you through several weeks or months of a banking collapse. These suggestions can be implemented immediately.