USA was 3 hrs away from economic and political collapse when Lehman Bros. blew up

reply to post by Idotwhat


What you purpose is entirely difficult to do these days. No longer do I get cash, not even a paycheck (which you have to use a bank for). No, it's either direct deposit, or a paycheck card. All the money is 1's and 0's floating around.

I could take out my money each payday but... if I don't have at least one direct deposit per month, or 6 debit card purchases, I get charged $12!

So you could understand why I'd like banks to fail.

Originally posted by AMANNAMEDQUEST
reply to post by Idotwhat

 

What you purpose is entirely difficult to do these days. No longer do I get cash, not even a paycheck (which you have to use a bank for). No, it's either direct deposit, or a paycheck card. All the money is 1's and 0's floating around.

I could take out my money each payday but... if I don't have at least one direct deposit per month, or 6 debit card purchases, I get charged $12!

So you could understand why I'd like banks to fail.

What's worse is that most of that money doesn't even exist "distinctively" as individual transactions. I wrote the system that handles most of the "check" clearing in the US. These banks settle 1000s of checks via aggregation simultaneously. They also use the system to settle things that are not checks... (thus the quotes around the word). I actually saw a set of TARP funds being transferred around between BAC and JPMC once while watching the transactions. It's all very fishy and murky.

Also, while I never got into debit card stuff, I was told by others in the industry that it works in a similar fashion... all aggregated and settled in bulk.It really is an enormous house of cards that could fall apart at any moment.

reply to post by rogerstigers

Currently, the US government maintains over 800 billion US dollars in cash money (primarily Federal Reserve Notes) in circulation

Source: Wikipedia

So it would be impossible to take all of our money out of the banking system in cash in one day.

reply to post by TheThirdAdam


Yes almost impossible. That amounts to just over $2000 dollars per person. However, most of that "cash" is not physically in the US, but in other countries all over the world. Realistically I would guess that there is less than $500 in cash for every person in the country.

www.newyorkfed.org...

There is about $829 billion dollars of U.S. currency in circulation; the majority is held outside the United States.

reply to post by Vitchilo


Just because America is in financial trouble you want to crash and reset? wipe the slate clean? I think your going to have to ride this out like everyone else in the world will/has.

Just because its America does not mean you can just forget all the debt like that, America has dragged the world into a pit of # over the last 100 years and its now time to finally stand up like men and shoulder the responsibility.

Stop the killing, stop the robbery, stop the lies, and look at what you are doing to the world.

Bring back Glaas-Seagal, force all derivatives onto exchanges with nightly margin supervision. Glaas-Seagall separates deposit institutions from investment banks. That insulates deposits from the gamblers, and derivatives traded like every other security with margin supervision forces accurate accounting and gets rid of the OTC games and opaque balance sheets. All the bailouts in '08-present have bought us exactly this long. CONgress has squandered that time to fix things legislatively. They will attempt another bailout, but I think they'll let the market tank more and let some big institution go bankrupt (I think BoA is the prime contender ATM) in order to generate the prerequisite fear to overcome the lack of political will for another bailout.

Is not going to be any bailouts originated in the US to help the our markets, the bailout will come when the EU agree to the proposal of the Franco-German meeting, then that is when the biggest bailout to the markets will be done, saving no only the EU markets but the US that is linked to them through financial institutions..

This will be done through the IMF where the US is the biggest funder and it will be tax payer money the one to pay for that.

But the government will never tells us the final cost of the next biggest bailout because while US keeps a quota the rest of the money is kept in the Federal Reserve until needed as US have that privilege.

Wow, This is news to me, though not too shocking at all.
I'm tired of waiting with bated breath, just give me my economic Atomic Wedgy and let me go home already while I still have one to go to, Jeez.

reply to post by snowen20


This article may also bring a frightening twist to possible events after a collapse

dont-tread-on.me...