# What happens when the bank's not there?



## Starcreek (Feb 4, 2015)

I went to log into my online checking account this morning, and couldn't do it. Probably the site is down for maintenance or there is some temporary glitch in the system. (I'll check back later.) But it got me to thinking.... What if? What if one morning I go to check my account, and it's just not there?

Maybe some cyber attack cleaned out the bank, or there's some major crash that puts all the banks on "holiday." For whatever reason, what if my account is suddenly just not accessible? Not there?

It may be useful to go over in our mind what we would do if tshtf suddenly, unexpectedly....just as it is likely to do. Think Greece, or Argentina. Think the U.S. at the end of the Roaring Twenties.

What would you do?


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## TheLazyL (Jun 5, 2012)

> What if one morning I go to check my account, and it's just not there?


.

My wife waits until the last possible minute to pay her bills online. Sometimes the last second. Web site down for maintenance, Internet interruption or a computer problem then creates a major crisis for her.

I have a tendency to plan and do things ahead of time, just in case.

So bank access going down for a day or two or even a week wouldn't bother me. Banks going down long term or permanently? I believe we will have other problems that will be of a larger concern to us.


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## jnrdesertrats (Jul 3, 2010)

Look out the window and watch everyting fall apart.


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## hiwall (Jun 15, 2012)

Everyone who is able to do so should keep a fair amount of cash in their pocket everyday and also keep a larger amount of cash in their home. I always carry several hundred dollars on me at all times even though I use my credit card for every purchase.


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## rhrobert (Apr 27, 2009)

Starcreek said:


> What would you do?


Nothing. Would barely affect me. I keep nothing in the bank, deposit just enough to cover the bills I still pay using it, on the day i pay them.

Everything else is paid in cash.


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## gabbyj310 (Oct 22, 2012)

I keep just enough to pay bills and a tiny bit extra "just in case".I would keep all my extra cash in small bills in my home in a "safe" place. Remember small bills spend easier if things are going down.Also folks remember the government can get in your safety deposit boxes too,so no gold or cash there either!!!!


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## Genevieve (Sep 21, 2009)

rhrobert said:


> Nothing. Would barely affect me. I keep nothing in the bank, deposit just enough to cover the bills I still pay using it, on the day i pay them.
> 
> Everything else is paid in cash.


This is what we do. We even let our deposit box go a few years back. the most I use the bank for is to count my change in the machine they have there and get the cash for it lol


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## RevWC (Mar 28, 2011)

I would first assume Obama wrote another executive order to confiscate all bank accounts. The Republican congress would come out and say they are furious and we need to act. They would immediately start with hearings. Nothing would happen (business as usual). Wall street would not have their funds confiscated, corporations, crony friends, or any politicians as Obama will exempt these entities with his executive order.

At the end of the day say goodbye to your savings as they did in Cypress.

My first task would be to plant all of my property with food and tobacco!


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## hiwall (Jun 15, 2012)

If there ever is a bank closing or bank holiday, they will certainly not give any warning that it is about to happen. One day your bank will be open the next day your bank (or all banks) will be closed. If that ever happens you will wish you had some cash.


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## Caribou (Aug 18, 2012)

The wife and I were invited over for dinner at a friends home. The adult daughter complained about how she had gone to the grocery store but couldn't buy any food. The credit card machines were down and as the cash machines were on the same system she couldn't get any cash either. This was all the stores fault and she had no culpability in the matter. "How do they think people are supposed to buy food if they won't accept credit cards?" She didn't even have enough cash to buy one bag of groceries and this was the stores fault.

The next thing out of her mouth was how if things went bad she was going over to the house of a guy that she worked with because he had guns and food. The wife gave me the look so I made no remarks about how I hoped she found him attractive. Neither of us made any comment about prudence of keeping some cash and food on hand as we didn't wish to have them try to move in with us if things went south. This was in a community that is only accessible by air. We get barges for about five months in the summer. We have seen air travel halted by weather every year and for longer periods by 9/11 and volcanic eruption. 

The daughter had been mayor so they are both old enough to know better. Democrats!!!:brick wall:

I'm not too worried about our cash as we keep enough on hand to top off on gas and make a last trip to the store. I don't see the stores staying open much past the the bank closure. Without the banks the stores can't pay for inventory.


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## TheLazyL (Jun 5, 2012)

OK. Logical to have some cash in case bank closes for a bit or credit cards aren't working. For that window I'll agree.

Beyond the window I disagree. I will not be selling anything for paper money, silver or gold. And I don't expect anyone to be selling either, at least not for long. Paper money leaves a bad taste in your mouth and isn't very filling.


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## Caribou (Aug 18, 2012)

TheLazyL said:


> OK. Logical to have some cash in case bank closes for a bit or credit cards aren't working. For that window I'll agree.
> 
> Beyond the window I disagree. I will not be selling anything for paper money, silver or gold. And I don't expect anyone to be selling either, at least not for long. Paper money leaves a bad taste in your mouth and isn't very filling.


Paper money will be traded well past its being of any value due to habit and it may collapse before the banks close. What am I saying? It is still being traded today after a trillion a year being printed. Many people will be late getting out of cash.

Silver and gold have been recognized as money for millennia. I will accept either IF I have something I am willing to let go.

Barter is good but it requires two parties to have something of similar value that the other wants. I like barter and I use it when I can but money is convenient and a store of wealth. No, I can't eat gold. If I have more produce than I can eat, or put up before it goes bad, I'd rather have silver than compost. I will not trade my last tomato or sack of rice for anything.


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## Viking (Mar 16, 2009)

gabbyj310 said:


> I keep just enough to pay bills and a tiny bit extra "just in case".I would keep all my extra cash in small bills in my home in a "safe" place. Remember small bills spend easier if things are going down.Also folks remember the government can get in your safety deposit boxes too,so no gold or cash there either!!!!


Never, ever forget what FDR did in 1933, seems that it was under the War Powers Act at that time, these days it is now called the Patriot Act.


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## Balls004 (Feb 28, 2015)

I'll probably have a little party if the banks close. Plus, I won't have to make a mortgage payment... :beercheer:

I lump bankers in with politicians, lawyers and insurance people. Everything of worth is at the farm anyway. I don't look for paper money to be good for much of anything except toilet paper if the banking system crashes.


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## Marcus (May 13, 2012)

Caribou said:


> The next thing out of her mouth was how if things went bad she was going over to the house of a guy that she worked with because he had guns and food. The wife gave me the look so I made no remarks about how I hoped she found him attractive.


She better hope *he* finds her attractive and that she's the first one there with that idea.


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## Country Living (Dec 15, 2009)

Balls004 said:


> I'll probably have a little party if the banks close. Plus, I won't have to make a mortgage payment... :beercheer:


The problem with not making mortgage payments or paying property taxes, even in a catastrophic situation, is someone can take advantage of the situation and swoop down in the first window of opportunity to take your property.

Just look back through the history and you'll see this done time and time again. The only variable was the circumstance in which the payments could not be made; however, the outcome was the same - loss of property to the bank or to someone who made the payments and the (former) landowners had to vacate.


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## TheLazyL (Jun 5, 2012)

Marcus said:


> She better hope *he* finds her attractive and that she's the first one there with that idea.


And a more attractive female doesn't show up later.


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## Bigdog57 (Oct 9, 2008)

It'll mean the First Muslim made good on his idea to take our accounts to 'spread the wealth' to his Koolade Drinking supporters who don't work. And we won't even get a "thanks" for our "contribution"......


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## readytogo (Apr 6, 2013)

*Lived and learn*

If by now the American public is not aware of the many kinds of fraud or possible banking scenarios (Murphy`s Laws of Probabilities) then we deserved the wrong, all over the news everyday about banking issues even with the new technologies folks,I-phones,P-phones ,Pay-by-Phone,Eat-the-Phone,sooner or latter we have to learn. 
https://www.google.com/search?q=florida+gas+station+atm+fraud
https://www.google.com/search?q=code+grabbers
http://www.snopes.com/fraud/fraud.asp
and the more plastic you use the more for the crooks to have.....


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## LastOutlaw (Jun 1, 2013)

Balls004 said:


> I'll probably have a little party if the banks close. Plus, I won't have to make a mortgage payment... :beercheer:
> 
> I lump bankers in with politicians, lawyers and insurance people. Everything of worth is at the farm anyway. I don't look for paper money to be good for much of anything except toilet paper if the banking system crashes.


Why do people always assume they will be left in their homes without having to pay anyone for their home any longer? Did this happen to people who had homes that were financed by any of the banks that collapsed in 2008? No it didn't. Believe me that the bankers are not going to just up and disappear if the SHTF. They will still want their money. If not them then whichever bigger bank that just got a bail in and gobbled up the other bank that failed.

Meet the new boss....the same as the old boss.


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## helicopter5472 (Feb 25, 2013)

If the banks close and our system of banking collapses. Lets say your house is paid off. You have yearly tax on your property. Lets say your tax is 1200 dollars a year. If the banking system fails, then chances are your job will stop since most places couldn't pay, schools and any other services provided by your taxing district are also going to stop. I know that 48% of my property taxes are for the schools. If they can't provide the services, they can't tax you for them. Just how would that work and or be enforced? Maybe I'm reading into this further down the road.


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## tsrwivey (Dec 31, 2010)

helicopter5472 said:


> If they can't provide the services, they can't tax you for them. Just how would that work or be enforced


It's my understanding they, in fact, are still requiring the farmers in California to pay the contracted amount but aren't delivering the contracted water. What makes school taxes any different? I agree with you that they *shouldn't* tax you for services they aren't providing but I'd bet the farm they will.

With many people struggling to feed themselves & their families, there'd be plenty of folks available to do the dirty work of collecting what's owed, mafia style if necessary.


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## Starcreek (Feb 4, 2015)

LastOutlaw said:


> Why do people always assume they will be left in their homes without having to pay anyone for their home any longer? Did this happen to people who had homes that were financed by any of the banks that collapsed in 2008? No it didn't. Believe me that the bankers are not going to just up and disappear if the SHTF. They will still want their money. If not them then whichever bigger bank that just got a bail in and gobbled up the other bank that failed.
> 
> Meet the new boss....the same as the old boss.


Probably correct. I read somewhere that during the Great Depression many people lost their homes when the banks foreclosed.


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## Caribou (Aug 18, 2012)

helicopter5472 said:


> If the banks close and our system of banking collapses. Lets say your house is paid off. You have yearly tax on your property. Lets say your tax is 1200 dollars a year. If the banking system fails, then chances are your job will stop since most places couldn't pay, schools and any other services provided by your taxing district are also going to stop. I know that 48% of my property taxes are for the schools. If they can't provide the services, they can't tax you for them. Just how would that work and or be enforced? Maybe I'm reading into this further down the road.


I think you are confusing rational, moral, and ethical practices with governmental actions.

The one advantage you will have with cash is in debts. You must accept cash for any debts. However, you do not have to accept cash for a sale. You can stipulate a sale in rice, silver, or any other manner. If you issue credit then you are legally required to accept cash. If we start having hyperinflation then you can take your cash to the bank and pay them off with these worthless dollars as long as the bank is open. The same is true with your taxes and it will probably take the government longer to figure a way around this than the banks.


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## Marcus (May 13, 2012)

Caribou said:


> I think you are confusing rational, moral, and ethical practices with governmental actions.
> 
> The one advantage you will have with cash is in debts. You must accept cash for any debts. However, you do not have to accept cash for a sale. You can stipulate a sale in rice, silver, or any other manner. If you issue credit then you are legally required to accept cash. If we start having hyperinflation then you can take your cash to the bank and pay them off with these worthless dollars as long as the bank is open. The same is true with your taxes and it will probably take the government longer to figure a way around this than the banks.


You are absolutely correct as this is the law. Our money even says this right on front: *This note is legal tender for all debts, public and private.*

In a hyperinflation scenario, it is wise to pay off all debt once the real value of the currency has fallen 50+%. *But, there are some exceptions.*

Since almost everyone will be behind the inflation curve (prices will be going up faster than pay), paying off some credit cards (those tied to a floating rate) will be important since the interest rates charged will go up at a faster rate than other debt instruments. I suspect most banks will freeze credit card accounts and attempt to convert these cards to debit cards of some ilk. If anyone was living in Argentina during their crisis, I'd like to hear how the banks handled this issue. I would imagine that personal credit dried up.

For those with ARMs, most only reset every 6 months or yearly. So there is an opportunity to take advantage of the hyperinflation and pay back a mortgage with cheaper dollars. However, there is also a risk after the first rate adjustment if the mortgage holder over-corrects on the rate increase and inflation falls significantly.

For those with fixed rate mortgages (which I highly recommend), paying off a mortgage is a very good idea after hyperinflation has devalued the currency. The issue will be one of timing since, at some point, there will be a restructuring of the currency and a translation of existing debt into the new currency. Another issue will be gathering currency in time to take advantage of the opportunity since most accounts I've read emphasized the daily hand to mouth existence during the hyperinflation.


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## ZoomZoom (Dec 18, 2009)

I think there will be a warning before the banks close.

It would be a government grab of retirement accounts. There's trillions sitting in those so they're licking their chops wanting to get their hands on it.

If that ever happens, move quickly, very quickly.


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## hiwall (Jun 15, 2012)

If there is any kind of a warning on bank closers then the banks/gov know that the result would be rank runs. This could easily be stopped with capitol controls (only allowing very limited withdrawals).
This is interesting......................

*Largest Bank In America Joins War On Cash*


> Today, as Mises' Jo Salerno reports, the war has acquired a powerful new ally in Chase, the largest bank in the U.S., which has enacted a policy restricting the use of cash in selected markets; bans cash payments for credit cards, mortgages, and auto loans; and disallows the storage of "any cash or coins" in safe deposit boxes.
> What is a surprise is how little notice the rollout of Chase's new policy has received.
> 
> As of March, Chase began restricting the use of cash in selected markets, including Greater Cleveland.
> ...


http://www.zerohedge.com/news/2015-04-23/largest-bank-america-joins-war-cash

Note - gold and silver are down right now!


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## LastOutlaw (Jun 1, 2013)

ZoomZoom said:


> I think there will be a warning before the banks close.
> 
> It would be a government grab of retirement accounts. There's trillions sitting in those so they're licking their chops wanting to get their hands on it.
> 
> If that ever happens, move quickly, very quickly.


Probably the way this would go down is bank holiday declared and all crucial bank employees locked in and living off of the Gov purchased BOBs ( Treasury buying emergency bags for bank employees) that were reported on a few months ago as they gut accounts and safety deposit boxes in a "bail-in" much like happened in Cypress.
NO ADVANCE WARNING.


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## ZoomZoom (Dec 18, 2009)

From the article (bolding is mine):
"Today, as Mises' Jo Salerno reports, the war has acquired a powerful new ally in Chase, the largest bank in the U.S., which has enacted a policy *restricting the use of cash in selected markets; bans cash payments for credit cards, mortgages*"

The dollar bills I have in front of me all say "THIS NOTE IS LEGAL TENDER FOR ALL DEBTS, PUBLIC AND PRIVATE".

If they refuse to accept cash, don't the then have to consider that debt settled (at least for the amount presented in cash)?


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## Balls004 (Feb 28, 2015)

LastOutlaw said:


> Why do people always assume they will be left in their homes without having to pay anyone for their home any longer? Did this happen to people who had homes that were financed by any of the banks that collapsed in 2008? No it didn't. Believe me that the bankers are not going to just up and disappear if the SHTF. They will still want their money. If not them then whichever bigger bank that just got a bail in and gobbled up the other bank that failed.
> 
> Meet the new boss....the same as the old boss.


It's pretty simple, if the banks crash. I transfer money from my bank to the bank that has finally ended up with my mortgage every month. If they have crashed, it's going to take a while before they get their stuff together enough to actually make the transaction possible.

They better hurry though, because in 8 months, they're going to be SOL, because it's mine free and clear. Everyone knows how efficient the government is at collecting taxes. So I figure I've got a bit of a window there.


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