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Originally posted by BlueAjah
reply to post by Wifibrains
This is very true, and has probably always been that way.
That is how banks work.
I remember years ago, before direct deposit was the norm, and people actually took their checks to the bank to cash...
Our company had to always call the local bank to warn them a few days in advance if our company was doing a second payroll for the week, which we did twice a year before a vacation "shutdown", when we paid employees in advance. If we did not warn the bank, they would not have enough cash on hand to cash the paychecks when employees brought them in.
Now with direct deposit, we never even see our cash. It is kind of an illusion that the "money" even exists, if you think about it. It goes directly into the bank, and from there directly to our debtors. And maybe we get a little cash allowance out of it from an ATM machine once in a while.
The "cash" does not really exist.
The other reason they are told to do this, is they really do want to eliminate cash, the banks would love everything to be electronic, their ability to commit fraud, take fees, and cut costs improve if it goes away.
-They then went to great lengths to assure her our money was both insured and safe in their bank.
Originally posted by OptimusSubprime
reply to post by Iwinder
Every few months I walk into my local Wells Fargo and take out $5000 in order to go and buy silver... they act like I ask for $10 Billion and it takes a good 30 minutes to get my money.
Originally posted by St Udio
reply to post by Iwinder
-They then went to great lengths to assure her our money was both insured and safe in their bank.
that was a false statement by the bank... in fact the FDIC deposit insurance fund has only about $25 billion in reserves to cover claims that can be greater than $5 Trillion if many of the top 40 banks had a severe crisis tomorrow
i cannot retreive the link at the moment but i did read the $25Bn figure of funds available for insured account holders... the FDIC will need money-from-air if there were a money run on the USA banks from anticipating a +10% "Cyprus-like" Tax on depositers conducted here in the USA
the system could collapse or trigger hyper inflation at the least
reply to post by sprtpilot
If anything remotely resembling a bank run got going here, you can bet some "emergency measure" would be immediately imposed preventing cash withdrawals.
Getting cash out and stashing it is all well and good for the short term. If the S ever hit the fan with a run on banks, they would crush the dollar and cash would be worthless and goes for most other currencies as well.
Originally posted by Bedlam
I've gotten 10K in cash out, and it's like pulling teeth.
Worse, the cops can intercept you outside the bank and steal your money. Then you have to put up thousands in bond and hire a lawyer to get it back, if you can.
If I was packing serious cash around, I'd be way more afraid of cops than a thief, I can legally shoot a thief taking my cash, but if a cop snags it, it's just gone.
Thank the war on drugs.
Originally posted by Catalyst317
I believe that banks should be held to the same standards as casinos are. They must hold as much cash on hand as they have in deposits (or bets as casinos go). This would stop A LOT of the illegal banking that happens.
Originally posted by Bedlam
reply to post by Iwinder
Thank the war on drugs. It spawned asset forfeiture, which seems unconstitutional on the face of it, but which the government LOVES as a source of income.
Of course, if you didn't incentivize cops by giving them part of it, they'd be less likely to act like highwaymen. Human nature being what it is, that's just asking for trouble.
Originally posted by Iwinder
Originally posted by Catalyst317
I believe that banks should be held to the same standards as casinos are. They must hold as much cash on hand as they have in deposits (or bets as casinos go). This would stop A LOT of the illegal banking that happens.
Is that possible? I am not being a smart ass but asking is that actually possible and I think the answer is obvious to all.
Your post is awesome and has merit in thought.
Regards, Iwinder