how likely is a run on the banks?

fearme · #1 08-24-2007, 07:55 PM

ive read other investing forums and some are saying a run on the banks are possible

also i have money sitting in a money market account with smith barney that is not fdic insured, how risky is this?

emon87 · #2 08-24-2007, 08:23 PM

why would there be a run on the banks? what is the reasoning of the other forums. I see no reason for one.

DcifrThs · #3 08-24-2007, 08:35 PM

[ QUOTE ]
ive read other investing forums and some are saying a run on the banks are possible

also i have money sitting in a money market account with smith barney that is not fdic insured, how risky is this?

[/ QUOTE ]

i seriously doubt there'd be a bank run.

what is the logical reason that there'd be a run on banks?

Barron

maxtower · #4 08-24-2007, 09:31 PM

Most people are in debt anyway. No one saves anymore. With a credit based inflationary monetary policy, you need to be borrowing as much as you can handle, maybe more.

johndenver · #5 08-24-2007, 10:59 PM

[ QUOTE ]
Most people are in debt anyway. No one saves anymore. With a credit based inflationary monetary policy, you need to be borrowing as much as you can handle, maybe more.

[/ QUOTE ]

explain? i need to be borrowing the max i can? why?

emon87 · #6 08-25-2007, 12:47 AM

[ QUOTE ]
[ QUOTE ]
Most people are in debt anyway. No one saves anymore. With a credit based inflationary monetary policy, you need to be borrowing as much as you can handle, maybe more.

[/ QUOTE ]

explain? i need to be borrowing the max i can? why?

[/ QUOTE ]

short answer: dollar declines in value and inflation increases, making the $$ you borrow now worth much less in the future.

i don't agree tho

fearme · #7 08-25-2007, 03:21 AM

i think ppl were saying banks arent carrying that much cash on them and are scared they will fail or something, so ppl will rush to cash out

MatthewRyan · #8 08-25-2007, 04:42 AM

FDIC anyone?

The once and future king · #9 08-25-2007, 05:11 AM

[ QUOTE ]
ive read other investing forums and some are saying a run on the banks are possible

also i have money sitting in a money market account with smith barney that is not fdic insured, how risky is this?

[/ QUOTE ]

People who are out of hand dismissing the above should look at libor rates over the last few days.

Banks dont trust each other at all at the moment and no one outside of the banking system really knows why. I mean they have general ideas such as sub prime credit crunch swap rate blow outs ect but no detail on why libor had gone through the roof.

Im not saying the op is that likely but sumthins brewin.

Fishhead24 · #10 08-25-2007, 07:26 AM

For those that believe this, they refer to it as WTSHTF(when the [censored] hits the fan).

It is the reason many, many individuals are hoarding precious metals such as copper, silver, and gold..........because U.S. "paper money" may become almost worthless at some point in time, and it will occur fast.

Metals will always have value.........and worldwide.

I know some indiviuals that have $10,000+ in copper pennies(pre-1982 coins are 95% copper) in their basements as a hedge against paper money becoming absolutely worthless....................good idea on their parts. Personally, I have a few $50 bags of copper pennies myself laying around the house.