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Expecting a bank run any day?


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No. Where I live things are actually getting to be a lot better. We're self-employed and many of our friends are self-employed and we are all starting to get really busy. Things are getting better not worse.

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I don't see it happening... so many people function off of credit cards anyway. I hardly ever see anyone paying cash at the grocery store.

 

I don't know of anyone around here that uses their credit cards for anything other than car rentals or hotels.

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Where is "around here"? I don't know how many around me use credit cards vs debit cards/cash, but I know our family does and I am fairly certain we are not the only ones.

 

I'm in Northern Alberta. I know there are people that do use their credit cards a fair amount, but they aren't very common around here.

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No, I feel very strongly that some in the media know that the more they scare people, the more attentive they are. I am a business owner and a home builder, business is good. Values are down but people are buying, moving and working. Not everybody...but I know it is getting better. Amazon just hired 1000 people in my town. :D

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From the article that the OP linked:

 

Capital is flowing from problem countries to Germany, Switzerland and the United States, among other “safe havens†in the form of currency asset and sovereign bond purchases.

 

Affected currencies include the U.S. Dollar, (NYSEARCA:UUP) up 4.5% since the start of May, which is widely seen as the safest currency in the world as the world’s largest economy stands behind it and the dollar is still the world’s reserve currency.

 

The article is implying that the problem in Spain and Greece could positively affect the US. To the OP: why do you interpret this as a possible bank run on this side of the pond?

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Do you just mean credit cards or do you mean credit or debit cards? I hardly ever see anyone write a check or pay cash at the grocery store.

I meant just credit cards, although in the little town I'm in, most the people here use cash. We're a small town though and it's become very popular to budget things exactly and to take out the cash you will need for the month. I know that in the areas surrounding me that it's become pretty common to use cash as well, but debit cards are still used fairly frequently, just not in my own town. Credit cards are not though, the only people I see using them around here are the few that have a reputation for being terrible with finances.

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but debit cards are still used fairly frequently, just not in my own town. Credit cards are not though, the only people I see using them around here are the few that have a reputation for being terrible with finances.

 

How would you know the difference? I have a credit card (that we use for big things to rack up points, then we pay it off) and a debit card, but they look almost exactly the same. Unless you had the same bank as I do, how would you know?

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I meant just credit cards, although in the little town I'm in, most the people here use cash. We're a small town though and it's become very popular to budget things exactly and to take out the cash you will need for the month. I know that in the areas surrounding me that it's become pretty common to use cash as well, but debit cards are still used fairly frequently, just not in my own town. Credit cards are not though, the only people I see using them around here are the few that have a reputation for being terrible with finances.

Wow! You must be in a very small town. Otherwise I can't imagine how so many people would be taking an interest in others finances. If someone tried to look that closely at my cards or my finances I'd smack them.

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I meant just credit cards, although in the little town I'm in, most the people here use cash. We're a small town though and it's become very popular to budget things exactly and to take out the cash you will need for the month. I know that in the areas surrounding me that it's become pretty common to use cash as well, but debit cards are still used fairly frequently, just not in my own town. Credit cards are not though, the only people I see using them around here are the few that have a reputation for being terrible with finances.

 

I recently spent some time with family members who live in an even smaller town than mine. This twenty-something couple told me about a local lunch counter that they have never tried because they never carry cash and the lunch counter is a cash only establishment. I wonder if the patrons are, in general, of an older generation than my nephew and his wife.

 

Wow! You must be in a very small town. Otherwise I can't imagine how so many people would be taking an interest in others finances. If someone tried to look that closely at my cards or my finances I'd smack them.

 

:lol::lol:

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yes, it's possible.

 

Am I worried? No. Concerned about the possibility, but there's nothing I can do about it, other than pray and have faith.

 

Am I prepared? Very little. We try to keep $500+ in cash for emergencies. No, that will not pay the mortgage, but is good for an emergency.

 

I'm a little surprised about the responses on this forum.

 

Other forums (financial, some Christian, and preparedness forums) are VERY concerned and are preparing and keeping a very big eye on this.

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yes, it's possible.

 

Am I worried? No. Concerned about the possibility, but there's nothing I can do about it, other than pray and have faith.

 

Am I prepared? Very little. We try to keep $500+ in cash for emergencies. No, that will not pay the mortgage, but is good for an emergency.

 

I'm a little surprised about the responses on this forum.

Other forums (financial, some Christian, and preparedness forums) are VERY concerned and are preparing and keeping a very big eye on this.

 

The response on discussion forums is generally not a good measure of how legitimate of a concern something like this is.

Preparedness forums usually see everything as a sign that the Big One is here.

Conservative Christian forums tend to overlap with the demographics of the preparedness group.

Financial forums are a mixed bag. I have not encountered many with high quality discussions or information. I do get a chuckle out of the comments on stories on CNBC, just because they range from insightful to tinfoil hat-esque.

 

My background includes international and monetary economics, and I see nothing that indicates a potential run on banks in the United States, or really anywhere else (Greece possibly excluded).

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No. Where I live things are actually getting to be a lot better. We're self-employed and many of our friends are self-employed and we are all starting to get really busy. Things are getting better not worse.

 

Do you think some of what we're seeing around here is pent up demand? That folks have been putting off some types of purchases for years, until they've reached a point where they can't wait any longer for that good or service?

 

I think we've entered the season of holding breath until the election outcome. After that I bet we'll see some activity. But bank runs? Seems unlikely. Rising taxes? Seems unavoidable. I what we will see is another major wave of change in personal spending habits.

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Do you think some of what we're seeing around here is pent up demand? That folks have been putting off some types of purchases for years, until they've reached a point where they can't wait any longer for that good or service?

 

That plays at least some role, although I believe a lot of that was worked out in 2011.

 

I think we've entered the season of holding breath until the election outcome.

 

Pretty much. I expect a lot of movements within the market but they will likely stay within a certain range (obviously dependent upon future data as well). I don't see any significant change in the employment figures over the next few months due to the holding pattern we have entered.

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If the world of finance collapses, so does pretty much everything else in the U.S. They won't be delivering to the groceries, drugstores or Walmart if the financial system isn't in place to ensure that happens. I've been following the financial situation fairly closely since 2008, and while they've managed to prop things up by printing a lot of money, bailing out banks, and creating ever more debt, that cannot go on forever.

 

When Europe collapses, the U.S. & global collapse is not far behind. Then you pretty much own what you own, and whatever skills you may happen to have. I wish I thought this scenario were "impossible" but I don't think anyone has a solution to the European problem, and things are likely to get worse. A lot worse.

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The response on discussion forums is generally not a good measure of how legitimate of a concern something like this is.

Preparedness forums usually see everything as a sign that the Big One is here.

Conservative Christian forums tend to overlap with the demographics of the preparedness group.

Financial forums are a mixed bag. I have not encountered many with high quality discussions or information. I do get a chuckle out of the comments on stories on CNBC, just because they range from insightful to tinfoil hat-esque.

 

My background includes international and monetary economics, and I see nothing that indicates a potential run on banks in the United States, or really anywhere else (Greece possibly excluded).

 

Neither does Paul Krugman. But then, very few people foresaw the Crash of '08. This next one is going to be worse by far.

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Neither does Paul Krugman. But then, very few people foresaw the Crash of '08. This next one is going to be worse by far.

 

 

The conditions in 08 were more ripe for a collapse than right now, and they were exacerbated by inconsistent actions when the collapse started. A couple of key decisions could have softened the blow tremendously.

 

The thing to take out of the 2008 collapse is that as bad as it was, and as crippling an effect as it had, it was still weathered better than the Great Depression and the panics prior to it.

 

Will there be another crash in the future? Probably. Anytime soon? Barring significant unforeseen external impacts, no.

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No. It would not have surprised me about 2 years ago, but things seem to be on the uptick around here.

 

No. Where I live things are actually getting to be a lot better. We're self-employed and many of our friends are self-employed and we are all starting to get really busy. Things are getting better not worse.

 

:iagree:We're seeing the same thing.

 

Do you think some of what we're seeing around here is pent up demand? That folks have been putting off some types of purchases for years, until they've reached a point where they can't wait any longer for that good or service?

 

I think we've entered the season of holding breath until the election outcome. After that I bet we'll see some activity. But bank runs? Seems unlikely. Rising taxes? Seems unavoidable. I what we will see is another major wave of change in personal spending habits.

 

Possibly, but our industry is tourism and we are feeling a palpable difference in the *way* people are spending money. It's really quite remarkable.

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Possibly, but our industry is tourism and we are feeling a palpable difference in the *way* people are spending money. It's really quite remarkable.

 

Same in my neck of the woods. In fact, I am shocked by the amount of building that is being undertaken, home and commercial.

 

There is a subset that is spending money, not just hiding it under their mattresses.

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Same in my neck of the woods. In fact, I am shocked by the amount of building that is being undertaken, home and commercial.

 

There is a subset that is spending money, not just hiding it under their mattresses.

 

We see it here in what people are willing to spend on their kids. Two years ago, private sports programs took a hit. Now they have waiting lists again.

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:confused: Potential bank runs in Greece, perhaps. I presume most of our membership is not based in Europe but in North America. Do I expect bank runs in the US? No. Nor does either of the posted articles make that leap.

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If the world of finance collapses, so does pretty much everything else in the U.S. They won't be delivering to the groceries, drugstores or Walmart if the financial system isn't in place to ensure that happens. I've been following the financial situation fairly closely since 2008, and while they've managed to prop things up by printing a lot of money, bailing out banks, and creating ever more debt, that cannot go on forever.

 

When Europe collapses, the U.S. & global collapse is not far behind. Then you pretty much own what you own, and whatever skills you may happen to have. I wish I thought this scenario were "impossible" but I don't think anyone has a solution to the European problem, and things are likely to get worse. A lot worse.

 

Your post makes me kind of glad we live on a farm with fairly good options for feeding ourselves (and our neighbors). If anyone cares, there's 16 acres for sale right next to us... if you have a spare 230K. ;)

 

BUT, I don't think there's going to be a run on banks in this country. Things were getting better here this spring. Right now I'm not so sure it's still getting better. I think it's slacking off. This is just based upon jobs hubby's been getting in (a great economic barometer in the past). Time will tell I suppose.

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Oh, tourism in the area (Gettysburg) is up, but it always goes up when the economy heads down... we're close enough to be day trips for a good portion of the population, so it's a less expensive vacation. It's good for "our" economy (locally), but not necessarily so good overall.

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Other forums (financial, some Christian, and preparedness forums) are VERY concerned and are preparing and keeping a very big eye on this.

 

Many businesses make big profits off of other people's paranoia. It is hardly surprising that there are online communities that foster it. But, I don't think most people are even aware of those sentiments other than the survivalist people on tv shows.

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