Page 1
Page 1
Started By
Message

If people cannot trust the banks to put cash will they not move it to the markets?

Posted on 3/12/23 at 8:38 pm
Posted by Tvilletiger
PVB
Member since Oct 2015
4673 posts
Posted on 3/12/23 at 8:38 pm
With all the cash that cannot be insured why would they not now all move it to stocks. Should we see a nice bump in the stock market? I am sure I am not getting it all.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51386 posts
Posted on 3/12/23 at 8:44 pm to
This is a bump in the road. If you see BoA or Cap One go down, then you should start worrying. Until then, there's no reason to create more panic than what already exists.

There will likely be a bit more withdrawals over the next few days than normal, but once people realize their bank isn't going anywhere things will calm down again.

Also, people are insured up to $250k. How many people do you know who have more than $250k in a bank?
Posted by Scruffy
Kansas City
Member since Jul 2011
71959 posts
Posted on 3/12/23 at 8:46 pm to
quote:

With all the cash that cannot be insured why would they not now all move it to stocks. Should we see a nice bump in the stock market? I am sure I am not getting it all.
I am as much of a doomsayer as many, and more than most, but a “run on the banks” isn’t in the cards.

Your average American doesn’t pay enough attention to resort to such a situation in modern day.

It would have to be a catastrophic event, which this bank failure is not.

Capital One or BoA would have to fail to even get close to that point.
This post was edited on 3/12/23 at 8:47 pm
Posted by Scruffy
Kansas City
Member since Jul 2011
71959 posts
Posted on 3/12/23 at 8:49 pm to
quote:

Also, people are insured up to $250k. How many people do you know who have more than $250k in a bank?
If it were to happen, I don’t think that would be a comfort to most people.

What would the timeline be on receiving that?

Most people don’t have a cash supply at home for emergencies (good idea to have some cash set aside).
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
420775 posts
Posted on 3/12/23 at 8:50 pm to
quote:

Most people don’t have a cash supply at home for emergencies (good idea to have some cash set aside).

If there is a run on a bank like BOA or Capital One, I don't know if paper money will be that valuable anymore either
Posted by Scruffy
Kansas City
Member since Jul 2011
71959 posts
Posted on 3/12/23 at 8:51 pm to
quote:

If there is a run on a bank like BOA or Capital One, I don't know if paper money will be that valuable anymore either
Also true.

We can start trading in bullets or bottle caps.

Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51386 posts
Posted on 3/12/23 at 9:11 pm to
quote:

If there is a run on a bank like BOA or Capital One, I don't know if paper money will be that valuable anymore either


Which is why it's smart to diversify in gold, silver and lead. If the first two aren't able to get you through, the world is at a point where you can rely only on the third.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
420775 posts
Posted on 3/12/23 at 9:19 pm to
quote:

Which is why it's smart to diversify in gold, silver and lead. If the first two aren't able to get you through, the world is at a point where you can rely only on the third.

I talked about this on the poli board. 99.9% of us aren't built to "rely on lead" as you put it.
Posted by Tarps99
Lafourche Parish
Member since Apr 2017
7292 posts
Posted on 3/13/23 at 5:41 am to
quote:

With all the cash that cannot be insured why would they not now all move it to stocks. Should we see a nice bump in the stock market? I am sure I am not getting it all.


Have you seen the market lately?

Terrible returns on most stocks. Why would I put my money in the market where I can lose 5, 10, 15, 20, 30, 50%, or more of my money if the stock market tanks?

The only decent investment right now is Treasuries. You get decent interest rates now that rates are rising. If liquidity is needed, short term treasuries. You can buy them in as short as 1 month terms.
Posted by Enadious
formerly B5Lurker City of Central
Member since Aug 2004
17687 posts
Posted on 3/13/23 at 6:46 am to
quote:

How many people do you know who have more than $250k in a bank?

People who went to cash to avoid the current market drop?
Posted by meansonny
ATL
Member since Sep 2012
25479 posts
Posted on 3/13/23 at 8:15 am to
quote:

Also, people are insured up to $250k. How many people do you know who have more than $250k in a bank?

I would guess that the majority of wage earners have their money tied up in their employer's payroll account with over $250,000.

So in the sense that they may not get paid on a Friday, a good many more people than you are giving credit to.
Posted by boogiewoogie1978
Little Rock
Member since Aug 2012
16940 posts
Posted on 3/13/23 at 8:22 am to
quote:

If people cannot trust the banks to put cash will they not move it to the markets?

Why would people lose trust? Also, I keep my money in a local federal credit union because of shite like this.
Posted by TrussvilleTide
The Endless Void
Member since Sep 2021
4069 posts
Posted on 3/13/23 at 9:25 am to
quote:

Which is why it's smart to diversify in gold, silver and lead. If the first two aren't able to get you through, the world is at a point where you can rely only on the third.


If paper money goes down all that will be relevant for the future is the third
Posted by rltiger
Metairie
Member since Oct 2004
820 posts
Posted on 3/13/23 at 9:52 am to
Many businesses for payroll, accounts payable.
Posted by bayoudude
Member since Dec 2007
24940 posts
Posted on 3/13/23 at 10:14 am to
quote:

With all the cash that cannot be insured why would they not now all move it to stocks.


Didn’t work out well for those heavily invested in the markets in 1929
Posted by lowspark12
nashville, tn
Member since Aug 2009
22365 posts
Posted on 3/13/23 at 10:18 am to
How many banks failed in 2008 and the FDIC made depositors whole?… 500?
Posted by NorCali
Member since Feb 2015
1043 posts
Posted on 3/13/23 at 10:28 am to
Yes, see the run on the US treasuries. all are down as cash is moved there and returns go down because of high demand.
Supposedly Gold is to but I haven't looked at the numbers
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram