I have a feeling if a late 19th Century or 1929 level depression happens that Bank Failures will be around the corner. I think it could be big enough that the FDIC couldn't insure all the Money. What should be done in the Short term if Banks look like they'll fail,Like in 1932 and 1933?

Somehow I don't think the banks will fail to the point where everyone would loose money in the banks. Other wise people will not trust banks as much as they have in the past. There will be more and more people that will carry and use cash only.

This would be to the determent of those who want a cashless society and are planning on making it so you have to use a debit or credit card for any transaction. The powers that be will have way to much resistance towards that if the people don't trust the banks. If they don't trust the banks, then they will not trust any other system either where they can not get hold of cold hard cash.

I agree that the banks won't just "lose" all the money, they may temporarily freeze everyone's assets at most. (The government can enforce a law to make it illegal for you to withdraw money until things stabilize.)

I don't see why people would distrust a system of purely debit cards over cash, as cash already has no real value if people all decided to stop accepting it tomorrow... it's just paper. It used to be backed, but now it's so partially-backed that you wouldn't stand a chance of getting gold or anything worthwhile for it, nor would they give it out in the first place. Although I don't like the idea where you need to have your money stored in a bank in order to be able to use it, and one piece of metallic strip representing everything you own.

Either way I can't see another great depression happening in our lifetime, or possibly ever again, let alone a bank system collapse. There are bound to be a couple of quite severe recessions, but not to the point of a depression.

If you feel certain a severe depression is coming and no one is going to talk you out of it, I suppose the only logical yet rash thing to do (oxymoron?) would be to withdraw all of your money from the banks before everyone else catches on, cash out of all your stocks and any other short-term investments you could (and hope like hell it will still actually be worth something), and stock up on a lot of ammo and food. Seems to be a common trend in this forum .

[edit on 9/13/2007 by Yarcofin]

Originally posted by Yarcofin
I agree that the banks won't just "lose" all the money, they may temporarily freeze everyone's assets at most. (The government can enforce a law to make it illegal for you to withdraw money until things stabilize.)

I don't see why people would distrust a system of purely debit cards over cash, as cash already has no real value if people all decided to stop accepting it tomorrow... it's just paper. It used to be backed, but now it's so partially-backed that you wouldn't stand a chance of getting gold or anything worthwhile for it, nor would they give it out in the first place. Although I don't like the idea where you need to have your money stored in a bank in order to be able to use it, and one piece of metallic strip representing everything you own.

Either way I can't see another great depression happening in our lifetime, or possibly ever again, let alone a bank system collapse. There are bound to be a couple of quite severe recessions, but not to the point of a depression.

If you feel certain a severe depression is coming and no one is going to talk you out of it, I suppose the only logical yet rash thing to do (oxymoron?) would be to withdraw all of your money from the banks before everyone else catches on, cash out of all your stocks and any other short-term investments you could (and hope like hell it will still actually be worth something), and stock up on a lot of ammo and food. Seems to be a common trend in this forum .

[edit on 9/13/2007 by Yarcofin]

Making it Illegal to pull Your money out is,I believe,euphemistically called "A Bank Holiday".

Originally posted by Yarcofin
I agree that the banks won't just "lose" all the money, they may temporarily freeze everyone's assets at most. (The government can enforce a law to make it illegal for you to withdraw money until things stabilize

The banks will either impose withdrawal rations to prevent a cash-flight by a panicked public, or just freeze public access altogether.

Either scenario will cause a mass social panic and be the trigger for panic buying and shelf-stripping

I find it humorous Yarcofin that you say that money is just paper, that it isnt backed...against gold. Now tell me, what value does gold hold in a world where you need water and food? Im not saying thats how rash things will get, but seriously, this whole gold business, if worse comes to worst, is a laugh.

This would be to the determent of those who want a cashless society and are planning on making it so you have to use a debit or credit card for any transaction.

My personal theory on why banks(and certain other individuals and groups) want to push for a cashless society is that they eventually want to phase out our current incarnation of governance by eventually making all transactions anonymous. How can you tax something you can't keep track of? The Rise of the Corporatocracy is my worst fear actually. If you want to read a satirical take on a society that is similar, read Snow Crash by Neil Stephonson. How will they keep control of you? Through Wage-Slaving and Corporate-Employed Slum-Lords who gouge the crap outta you. You know, sorta like now except with no taxes and few laws(just "Regulations and Memos").

[edit on 14-9-2007 by sardion2000]