What if everybody cashed in all their assets?!?!

Does anyone thing that the banks have enough money to cover us if we all sold our houses, cashed out all of our bank accounts and assets?!?!? Im still under the impression that most of this money being lent out with interest is really just numbers on a computer screen.. and the money really doesnt exist at all!

I completely agree.
It would be an interesting topic to research.
I wonder what a bank manager would say if you asked him about it.

Wasn't that event the basis for the movie "It's a wonderful life?"

charles

What an excellent question! I wish I had an answer for you, but I don't. I am looking forward to seeing this topic progress.

Here is a thread I started awhile back in regards a related topic.

I agree it is all BS and hot air. A faith based system that is being tested and maybe even corrupted.

www.abovepolitics.com...

I forgot you had that thread RealTruth. I even responded to it. I guess I must have gotten busy, I never did finish all the posts. Guess I better do that. Maybe by recreating the question we'll get new answers and ideas from others.

Do you ever wonder if this is the Anti-Christ, the banking system that is.
Anti-Christ means instead of Christ. This monetary system takes faith to use credit. You can serve God or Mammon. I know I'm sick of working 14 hours aday, seven days a week. This working for fiat paper completely controls my being. I base my whole life around trying to get these banking instruments in order to buy & sell.
I don't know but it kind of seems like people worship the all mighty dollar.

They'll just print money out of thin air to pay you with more worthless currency.

If anything, you should 'cash out' of your cash and buy more hard assets.

Paper money DOES grow on trees, and they're flooding the market with it.

Originally posted by hikix
Does anyone thing that the banks have enough money to cover us if we all sold our houses, cashed out all of our bank accounts and assets?!?!? Im still under the impression that most of this money being lent out with interest is really just numbers on a computer screen.. and the money really doesnt exist at all!

I would say they would. The mass sell off would cause the value of items to drop. Simple supply and demand. If there is too much of the same thing they easy to get and you end up with a buyers market.

Originally posted by hikix
Does anyone thing that the banks have enough money to cover us if we all sold our houses, cashed out all of our bank accounts and assets?!?!?

Of course not.

Im still under the impression that most of this money being lent out with interest is really just numbers on a computer screen.. and the money really doesnt exist at all!

The banks have NEVER had all the money that was put into them. In the past, when there were financial panics in a region, people would put a 'run' on the banks, trying to withdraw all their money, and that would cause the bank to collapse, and then EVERYONE got screwed.

Just remember this something is only worth what people are willing to pay for it. So all the appraisals, values truly mean almost nothing, if the market takes a dump or we get a depression, objects are only worth what people are willing to pay or have for the item.

Either way, if everyone tries to empty their bank accounts, like they go to the bank and want to withdraw the cash, there isn't enough cash at the bank to cover it, not even most of it.

Isn't this what happened during the Great Depression? The market crashed, and everyone tried to liquidate their assetts and get their money out of the banks. The problem was that the banks didn't have the hard currency to give everyone their money- and all hell broke loose.

That's why so many elderly Americans, especially those who were around for the stock market crash of 1929, or those whose parents were, don't trust the banking system. They hide their money under their mattresses, in jars and cans in the cubbard, under their floor boards, etc, etc. If anyone has been unfortunate (or fortunate, depending on your relationship with the person) enough to have to go through the home and belongings of a deceased grandparent or great aunt/uncle, you probably discovered cash and coins in all sorts of weird places. They hide money in so many places that they can't keep track of them sometimes and completely forget. And of course they don't trust anyone besides their spouces (and sometimes not even their spouces!) to tell them where their money is hidden in case of a death or other emergency.

My sister and brother-in-law purchased a house from an elderly woman who was put in a nursing home. When I was helping them clean the place up and get settled in, I found a hundred dollar bill underneath the washing machine in the basement! It's no wonder that criminals often target the homes of the elderly. It's not just because they're weak and easy prey, it's also because they know that the elderly often keep a lot of their cash and valuables in their home rather than in a bank and safe deposit box. Of course this isn't true of all elderly folks, and I don't want to portray a stereotype. There are folks of all ages who don't trust the banking system in this country, of course.

Anyway, my advice to anyone with savings/investments is to put at least 10-20% of their portfolios in gold. Gold has never been worth nothing. And when governments and economies and currencies collapse, gold will still be there and it has always been there in the past. Although gold is at record highs right now, and despite the fact that gold dropped about 10% during the stock market "correction" this past week, I think its still a solid investment. There's only so much gold on earth, and unlike currency you can't just create more of it. And I think we pretty much know the locations of almost all of the gold on earth. It wouldn't surprise me if we reached a point where very little to no more of it could be mined. Imagine how much it'd sky rocket at that point!

Originally posted by Nygdan
Either way, if everyone tries to empty their bank accounts, like they go to the bank and want to withdraw the cash, there isn't enough cash at the bank to cover it, not even most of it.

Not enough cash, gold, silver....paper is worthless and like I said money is a faith based system like religion.

If there is little or no faith then we all have a problem.

Realtruth,
Please provide some evidence of what you're saying.

As far as withdrawals, I've actually asked.
5k in cash, Benjamins only. No twenties, or below. At one time, per month.

Claimed, tax purposes.

Anyway, why fight it. It's here.
We are a socially (sp) generated society based on our banking system.
Unless you go to a barter system, it's what we have to work with.

Just my 2 cent,
Lex

Originally posted by Rasputin13
Isn't this what happened during the Great Depression? The market crashed, and everyone tried to liquidate their assetts and get their money out of the banks. The problem was that the banks didn't have the hard currency to give everyone their money- and all hell broke loose.

What happened in the Great Depression was exactly what is going on today, to much credit being extended and high interest on the credit or loans. One major hiccup in the economy and people with large debt are screwed.

Most people that think OK! I can afford that monthly payment, but what they do not realize is that the banks can call the total amount of a house note in at times of deflation. Don't believe me do your research.

Deflation 101

Example if you buy a house in an area were every house is $100k, so you buy at $100,000 and put $20,000 down and the bank loans you $80,000, now if the market starts to tank in the housing industry and people start to panic and sell their homes for $75,000 the banks have an option to call the remainder of your $80,000 in at any time during this mess. Yes even if you didn't miss a payment.

Most people really don't read the fine print or know lending laws, but lending institutions have that option.


[edit on 3-3-2007 by Realtruth]

I got a settlement check in 1998 $75,000 , I went to the bank to cash it Im in NY , they only had $29,500 to give me and had to call another bank to get a Armored truck to get the rest they tried to talk me out of chasing it and making a deposit , So I would say they there is no money to cover millions if you made a run on a bank, they cant even cash a 75000 dollar check

everything is electronic... does anyone really think that the vault in a bank holds all of the bank members money?!?!? If everyone who is a member to one specific location took out all their cash... there would be alot of scrambling going on!!!

Biggest reason the Private Federal Reserve took the USA of the Gold Standard.

Back a long time ago every dollar printed had to be backed up by equal amount of gold.

Something to think about.

it's funny and scary to think the credit system and loans are really just numbers in a computer not backed 100 per cent