Bank of America CEO Brian Moynihan on Monday said the firm is preparing for the U.S. to default on its debt after surpassing its borrowing limit last month.
Lawmakers are locked in talks about whether to lift the debt ceiling, with Republicans insisting on spending cuts before a deal to raise the limit is struck, and economists are warning of financial crisis if a default does occur.
https://thehill.com/policy/finance/3845901-bank-of-america-ceo-preparing-for-us-debt-default/amp/
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So should I max out lines of credit (take cash out) and just make minimum payments plus interest for a few months, and store the cash safely? I end up paying interest and then redeposit the cash if things are okay. But if things crash and banks go belly up, I have extra cash. I would still save it in case that line of credit is handed to a collections agency. What do you think?
It’s a good strategy but remember. History says that even in a crash, the mortgage bodies will want their payments. CC, personal loans etc. Going forward, you must keep HARD copies of ANY payments. Or put that money aside and don’t touch it if the banks go belly up if you cannot make payments due to internet issues, bank shopfronts closed, direct deposit BPAY etc. We’re in for a rough ride.
Thanks!