Where will your money be when the ball drops?

[jajbellsouthnet]

I believe the present condition of our economy to be something like this:
A guy who pays $1,500 per month on a $250,000 mortage.
He also pays $600 per month on a $28,000 car loan.
He pays $200 per month on a credit card bill of $14,000.
He borrows $2,300 each month to make his payments.
And he doesn't have a job or any money in the bank.
That's the United States economy. We have no factories left, very few producing farms and almost no mines. The government borrows $3 billion each and every day just to make payroll (welfare, social security, medicare). Because welfare and medicare/medicade have become industries in themselves, they can't even cut these programs in an attempt to balance the budget and reduce the deficit. My county in Florida gets 58% of it's entire income from these government giveaways. Take them away and we cease to exist. Someday, somewhere, someone is going to refuse to lend us the money to finance this insanity. I believe that time is near and have given a lot of thought as to how I can handle it.
Overseas investment is out. If I don't trust my own government, I sure as H--- am not going to trust someone 10,000 miles away. FDIC insured deposits? My bank tells me that in the event of a large scale financial failure, the FDIC is going to "discount" insured deposits or restrict the amount of funds you can withdraw at one time. Stocks?
Do names like EMRON, GM and WorldCom ring a bell? I lost a large portion of my 401K in GM stock. So.....what to do? I bought some gold, some silver, some solar energy equipment and a bunch of guns and medical supplies but still felt that something was missing. I am now expanding my 1 acre garden with more raised beds and lots of carefully selected non-hybrid seeds and medicinal plants.
I think that all the bases are covered.
Do any of you believe that the economy is drowning in debt and will shortly fail? If so, what preparations are you taking?
Do you believe that the economy will not fail? Why not? How will it be saved?
Curious minds want to know..............

[1lifetolive]

Yeah I believe our economy is on a slippery slope,
I just retired in july, our pension plan (which 10 years ago was considered to be in the top 3 for the state of michigan) is in serious trouble, So far 25% less a month, with more cuts anticipated..
We relocated to a mountain state, 30 miles from a small town , in a somewhat remote area surrounded by national forrest, the neighbors are good ole country folk & Amish families..
We burn wood, hunt, fish, garden and can.This spring will get some chickens & rabbits....No debt &
low monthlys.....No gold or silver, invest instead in things that we can use or barter.
FDIC insured, What a joke. A well to do friend was told, "worst case senario they have 99 years to give you your money". I can't get the fine print from my bank spelling out the payment terms...So for now we take the risk...
When? Havn't a clue.

[jajbellsouthnet]

I didn't get the FDIC information from anything on a piece of bank stationary. When the bank representative gave me that info, her voice went from very cheery, normal voice to almost a whisper. She held her head down and didn't look directly at me so no one nearby would realize that she was talking. I got the impression that she needed the job and giving me that information could cost her her job. I believe that she felt guilty that the bank was being less than honest with it's customers. You're right about "...how long they will take to give you your money." According to her, the FDIC will let you have your money back in one lump sum, but that amount will be "discounted" by +/- 50%. You will get half or less of the money you have deposited. Your other option is to take whatever you get when they decide to give it to you and hope that you eventually get all of it back. No set schedule here. Not that it will be worth much when you get it.........

[nightshift]

Yes, I beleive we are headed for trouble in this country. Not that it is a good thing but I don't have alot in the bank right now do to a financial situation. I have toyed with pulling it out and stashing it. Oh, no, I'll lose my 1.5% interest. I am working on getting rid of debt and have made a real dent in it. Only owe @ $5500 in non mortgage debt and less than $50K on that. Sound like alot but have been hit hard recently. I agree with working to fed your self, ect. Still working on it and hopefully we will have a little more time.

[Viv]

*I just retired in july, our pension plan (which 10 years ago was considered to be in the top 3 for the state of michigan) * is in serious trouble, So far 25% less a month, with more cuts anticipated..
*

May I ask a personal question? Are you receiving monthly checks or did you take your retirment lump sum? If your checks are being cut regularly wouldn't you be better off to cut and run with what they have left to offer you. You could put it in the bank or in a safe at home but at least they could not cut it down to -0- at some point.

[1lifetolive]

sahw,
Taking it in a lump sum isn't an option...
If I live 21/2 years I will draw out all that i put in.
If the fund was zero'd out today There would be 10 years worth of payments.

[jajbellsouthnet]

I noticed today (26 Feb) that 1 oz. U.S. Golden Eagles are above $700 each. A recent newspaper article pointed out that the new $1 coin costs the government 7 cents to produce. Hellooooooooo....................

[edward_4576]

I just checked COMEX gold and it was below $700 an ounce. Now that the market "readjusted" itself (snicker) lets see what happens.

Is this the beginning

[Rancher]

I hear and read many comments in many places bad mouthing the stock market. Many are comments about someone who lost money in stocks.

I do not have a pension and am not covered under Social Security. My income comes from my invetments in the stock market. I made my first investment, $50, in 1954, the year I was discharged from the military when I came back from Korea.

I have never had a losing year in the market. If I remember correctly, in my lifetime, the Dow has gone from under 1000 to 14,000 today. The stock market has been the key to my lifestyle and I paid off my one and only mortgage in 1967, on a ranch bought in 1958 with a 30 year mortgage. I have never had any debt since 1967. I use only one credit card, an American Express Business Card and I pay by check or cash for everything my wife and I buy, including my new truck and car approximately every 5 years.

The business of America is business. I suggest that no one should invest in anything without understanding the investment. This is only gambling. But, Learn to invest. Learn to manage your investments and don't gamble. Many times I notice that the Mass News Media contributes to false invetment information. For example, Enron has a bad name, rightly so. However, anyone, including myself, who pays attention to investment basics, made good money from Enron. You would not know this from the common perception from news reports.

I suggest that anyone seriously considering investing in the stock market regularly read information sources such as Investors Business Daily (subscribe or read in the Library), Wall Street Journal, Forbes Magazine, etc. I am a member and I am a regular instructor in two local Investment Clubs and I highly recommend anyone to become a member of your local club. As with any business, learn as much as you can from reputable teachers and you can be successfully profitable.

If you are willing to spend an hour per day managing your investments in the stock market, you can be profitable. Management is the key.

[annabella1]

what money?

[Poisian]

The dollar is devaluing rapidly and the way is being paved for the Amero across the continent of North America. The economy will only get worse -- and will not recover. The middle class in the United States and Canada is history. I don't believe there is a middle class in Mexico. More war is on the way and it is costing us everything we have left...

Goodbye, United States, Bill of Rights, Constitution, and Declaration of Independence, it has been nice knowing you. Hello, Mexican truck drivers and migrants, cheap Chinese junk, Hillary, Socialism, and North American Union.

I've got a lot invested in junk silver and silver bullion, books, i.e., knowledge, hope, red wheat, blue corn, tepary beans, water storage, Survivalism in general, combat equipment, etc.

[johnjmw]

When the ball drops? Ouch! Money, of any type will be worth nothing. I think it will be only a barter economy. (if the ball hits bottom) Other than a complete collapse I agree with Rancher. Invest well in stocks and keep no debt that is not absolutely needed (mortgage as short as possible) I am trying to keep in both good mutual funds and directly in stocks.
I'm not sure if there will really be a value for gold or silver in a real collapse. Till then, stock up on useful and trade able stuff,,,, will there be coffee to go with your guns and ammo?

[mike82934]

I'm not sure if there will really be a value for gold or silver in a real collapse. *Till then, stock up on useful and trade able *stuff,,,, will there be coffee to go with your guns and ammo?

I've never believed that gold and silver will be worth much in an economic collapse. Sure, maybe if you take it to a foreign country that hasn't fallen, you'll be able to cash it in and buy things with it there. Most people in a collapsed country are not going to want gold, since you can't eat it, keep warm with it, or defend yourself with it. I can somewhat understand gold's use if you're just trying to protect your fair earnings against the fed's fiat currency. In the event of a total collapse, though, I think it's going to be things that directly insure comfort and survival that will have real value.

If you really want something that will be valuable when TSHTF, buy tobacco. ;) :P

[livinlite]

I've been thinking about this for a while now. *I make about 2.5-3% on my ING account that has about $5K in it. *I have a 0% credit-card that I put $5K worth of expenses on to free up another $5K of "cash" that is also earning interest...but ready if needed to pay off card before interest charges start. *And I'm not aggressively paying off my student loans so I can amass for ready cash.

My thinking is, if TSHTF, I won't care about my student loans/car loan/credit debt...but I WILL care to have cash available and in hand to buy as much of what I need ASAP or convert to another currency upon leaving (if we have to), etc. *Sure, the cash may devalue quickly, but that's better than getting nothing when the bank/ATM says "sorry".

Not the best long-term strategy, and once we get about $20K free and clear, I'll work on that debt/savings...but till then, I'll keep living cheap and making sure I have ready access to my fundage. *I am also making sure I maintain my good credit standing, etc. for buying land shortly *;) *

These are convuluted times that call for convuluted plans.

@ Poisan:

I think it's much more likely we'll trend towards Fascism than Socialism. *Both would suck, but with how power is amassed in this country, I'd see our military taking over, labor/debtor camps, etc. *Money is king and the people of the this country, because of their choices and gov't policies of the last 40 years or so, are deeply owned by other countries...in one way, we are communists, owned by China, a Chinese welfare-state living off their goods/labor. But, it's kind of foolish to think in terms of just our government...it's global at this point. *Nations differentiate themselves with styles of ruling, but it's all one ruling class the world over and they will do whatever necessary to stay in power. *It will be much different than the governments of a segregated world of 100 years ago. *I think... ??? I'm happy I get to live in the one that gives the most personal freedom...even at this late date, but there will come a day where they try to take that from us...or are forced to by other governments who demand to be paid for the loans. We shall see...

[sharp_shepherd]

I've never believed that gold and silver will be worth much in an economic collapse.

If you really want something that will be valuable when TSHTF, buy tobacco. *;) :P


I agree but will raise you with guns and ammo. People are more likely to buy guns and ammo than tobacco because you can protect your family as well as hunt. To bad for those ppl who are so so against guns. Those will be the ones selling their gold and silver for a few crumbs of food.....if they aren't mobbed, robbed, rapped and murdered first.

[livinlite]

Just read something about the Silver Star Bank in Nevada being closed by the Feds...is this number 9 or 10 so far?

[Aiken]

Silver State Bank is #11 for the year.

[flatwater]

Spent ;D
flatwater

[livinlite]

WaMu #12

Pulled all but $200 of my cash last week.

Sock Drawer Savings and Loan is offering 100% solvency. 0% interest, but immediate withdrawels at my discretion ;D

[TheUnboundOne]

Dear Jajbellsouthnet,

Howdy, Jaj!

To answer the question, I haven't banked in years and anything I have other than nominal amounts in a debit card or PayPal and some company stock is strictly cash. *

My employer cashes my check for no charge, so I especially don't need a bank for that purpose.

Thus, I know where my money will be when the ball drops. *If anyone else wants to know, that is a need-to-know question.

:)

And folks, whatever you do, keep your Pennies, Nickels, Dimes, and Quarters. *Even if the currency goes belly up, you can still use them along with your produce and groceries for electricity. *No joke:

Create a Lemon Battery
http://www.youtube.com/watch?v=AY9qcDCFeVI

Cola Battery
http://www.metacafe.com/watch/727730/cola_battery/

One particular design was in the book The Dangerous Book for Boys that used quarters and aluminum foil as the electrodes and components of the battery pile.

And if you want some real power, you could also use ice trays and earth along with your coinage:

12V Earth Battery
http://www.metacafe.com/watch/yt-eztcSWZpfJg/12v_earth_battery/

[zachweiss]

WaMu #12

Pulled all but $200 of my cash last week.

Sock Drawer Savings and Loan is offering 100% solvency. 0% interest, but immediate withdrawels at my discretion Grin

Haha.....my bank is very similar.

Just add a mentally disturbed military veteran with a Remington 12-gage pump as bank security and we are pretty much banking at the same financial institution!