[Revi]

This is a bad situation. What do you suggest we do to prepare for bank problems? It seems like it's a good idea to have some cash on hand. What else?

[billg]

It's coming...

http://www.moneyandmarkets.com/citigrou ... ible-28325

[copious.abundance]

I'll be waiting for this one, too.

[patience]

For us, preparing for a bank "holiday" has meant cash on hand for an extended period without functioning banks, credit cards, and a lot of businesses.

We paid off the CC's, keep only a checking account with a small balance, and arranged to be able to pay all our bills with cash, including utilities, phone, internet, etc.. Insurance would be cancelled except for cars. I think this much should be top priority.

We are old, so our mortgage was paid some years ago, and we have cash to pay the property taxes for several years. We keep a freezer full of meat and enough groceries on hand to endure a long period without shopping. I have what I need to keep our repair business running for at least 6 months without buying anything, which includes welding supplies, material stocks, cutting tools, and hardware. I have open accounts at our 2 major suppliers that can be paid with money orders by snail mail. We have a wood stove going in very soon and enough wood for the winter. Solar PV could be turned on very quickly, with a backup generator and fuel stored. Gasoline for garden tractors, a gas powered welder, chain saw, and minimal transportation use, plus LP for the kitchen stove, coal for the forge, and welding gases are all on hand.

Farmers we do business with have dairy cows, chickens, and beef. Over the hill is a small river with fish, and deer play in the field next to us. There are 6 barrels of wheat in the barn and a burr mill. We make our own flour and do all our own baking. We have a cistern and water collection for the house, and almost finished with that for the gardens. Next year's garden seeds and supplies are here, and the orchard is bearing nicely.

The more disconnected you can get from the present economic system, the better off you will be.

[eXpat]

$this->bbcode_second_pass_quote('billg', 'I')t's coming... [url=http://www.moneyandmarkets.com/citigroup-collapses-banking-shutdown-possible-28325]link

[patience]

In the current crisis, I cannot understand having blind trust in US Treasuries. While I will grant that T's have been the safest and probably are still the safest, next to cash, with the looming US budget problems, how can one not have some concern about the future of Treasuries and the dollar?

Marc Faber is counselling people in the US to own physical gold, and have it domiciled in another country to avoid possible confiscation. Jim Rodgers, Jim Sinclair, Peter Schiff, are all talking their book of course, with similiar advice. Meanwhile, Nouriel Roubini has become an unabashed Keynesian, telling govts to spend, spend, spend, which is what the new regime promises to do, and quickly. If we can believe anything these people are saying, then it does not bode well for the US and its' securities.

The US could well face a meltdown of the sort experienced in Russia, Argentina, and others not so long ago. How'd that work out for holders of their govts' debts?

For myself, I want no part of anything paper for the forseeable future. I think the trust placed in govts is badly misplaced, given the history of govts and what they have done when in extremis. I expect the desirability of US Treasuries to undergo an about face, and too quickly to exit them in time. On such things, one must be preemptive.

[emeraldg40]

Was that link an ad?

[AirlinePilot]

Denninger today.

Some simple Math, Denninger style.

http://market-ticker.org/archives/1476- ... lvent.html

[basil_hayden]

At least the third time this was posted today, sweet doomer porn I guess.

[ian807]

Not exactly news. We've known for quite some time that if the banks were forced to mark their assets at current market rates, they'd be so far underwater that little glowing fish would nip at their heels.

"Mark to Market" rules have been as they say, "relaxed" in the continuing story of "Grand Theft Banko"

[Buggy]

I have been saying this for a while, and I actually read it somewhere today. America will keep on living the way we live until somebody(Country, Military) stops us. We have been insolvent for at least 20 years. We started pillaging the world in 1913.

[mefistofeles]

And water is wet.

[TreeFarmer]

$this->bbcode_second_pass_quote('Buggy', 'I') have been saying this for a while, and I actually read it somewhere today. America will keep on living the way we live until somebody(Country, Military) stops us. We have been insolvent for at least 20 years. We started pillaging the world in 1913.

[SeaGypsy]

America is like the guy with the Mercedes on your street. He might be insolvent but because he looks flash and keeps spending money; someone is always prepared to lend him another million.

There is a saying in business that your 1st million is the hardest to make; do that once and the banks will always loan you more.

A lot of the flashiest individuals exist on compounded debt refinancing; with their creditors always thinking that if worse comes to worst they will get to pick at the bones after.

[kiwichick]

heard today on bloomberg that the fed has close to $1 trillion
in "reserves"


????????????????

[FireJack]

Since the collapse last fall the economy has been living on ever increasing amount of stimulus or printing money. Just how long can this go on for?

Edit: Is it just me or is a economic collapse nearing. What else can they do to hide these problems?

[SeaGypsy]

$this->bbcode_second_pass_quote('FireJack', 'S')ince the collapse last fall the economy has been living on ever increasing amount of stimulus or printing money. Just how long can this go on for?

[eXpat]

Are Bank Of America, Wells Fargo and Wachovia planning for a Bank holiday?
- Bank of America
http://www.businessinsider.com/2008/10/is-bank-of-america-warning-of-a-bank-holiday-
- Wells Fargo / Wachovia
http://tickerforum.org/cgi-ticker/akcs-www?post=113255

[biofuel13]

$this->bbcode_second_pass_quote('eXpat', 'A')re Bank Of America, Wells Fargo and Wachovia planning for a Bank holiday?
- Bank of America
http://www.businessinsider.com/2008/10/is-bank-of-america-warning-of-a-bank-holiday-
- Wells Fargo / Wachovia
http://tickerforum.org/cgi-ticker/akcs-www?post=113255

[eXpat]

$this->bbcode_second_pass_quote('biofuel13', '')$this->bbcode_second_pass_quote('eXpat', 'A')re Bank Of America, Wells Fargo and Wachovia planning for a Bank holiday?
- Bank of America link
- Wells Fargo / Wachovia link