Can we have a thread about what the hell to do right now?
🗣️ DISCUSSION 💬
First of all, I'm an idiot when it comes to anything financial. I know many of you aren't. What is the safest thing to do with the money (fiat) that we do have right now? Leave it in our local bank? Credit union? Keep it as cash in my sock drawer? Also, the money in my 401k? Switch it over to bonds or something else I don't fully understand? Any thoughts from someone who's been paying better attention to these things than I?
First all, breathe. Calm yourself.
Do NOT jump into financial instruments you do NOT understand.
By now, you should have cash on hand. Cash will still be useful for quite a while. The dollar still holds its status as the petro dollar.
If, you do not have cash on hand, I would start there. Another post said 5K, sound advice.
Over the past year, this is the strategy I have been following:
Get out of debt. House, vehicles, etc. All paid off. Debt will be the killer as vehicles can be repossessed or you could lose your home.
Major appliances and repairs purchased or completed. This includes back up heating and water filtration. All done with cash.
Silver. I have converted a chunk of fiat into silver. I don't plan on using it.
Health. What do I need on hand, what do I need to learn?
Food prep stocked up.
Barter skills. What skills do I have to barter and what do I need to improve or sharpen here? Steps taken.
Hydroponic gardening. Stated this on a small scale. Also, I have seeds for spring.
My 401K. It's numbers on paper. I am not near retirement age. I am letting it ride.
My bank. I bank at WF and a local bank. WF has 12 trillion in derivatives - which is somewhat concerning. Given WF being part of the CBDC pilot earlier this year, I am betting they wont let it fail. Plus, my accounts are under 250K which make them FDIC insured.
My local bank. Zero derivatives. No need to panic here. Again, FDIC covers the account.
I do not understand bitcoin, so I avoid it. Sounds like fiat but untangible. I could be missing out. So be it.
Bonds. I avoid. These are debt instruments. I am expecting defaults during this time. Losing proposition - even the municipal bonds (city bonds).
I expect things to turn south for a while as people panic. I expect atms to be shut down and bank doors to be shut. I have been working to prepare so I can ride out the storm.
Banking strategy is one part of prep. Good luck.
Good post, but 1 point that I believe could be a problem. FDIC doesn't have the resources to underwrite a full-scale economic collapse. Keep money in banks at your own peril.
Yes. Trying to divest risk as much as possible while keeping panic at bay.
The FED is propping this up as much as possible. We are in free fall. We have not landed, yet. We are in the middle right now, today. Fear is the mind killer.
Looks like the FED is will be printing like crazy, we will bail out FDIC via inflation.
This means that even if your money is in a credit union, it's not "safe". The dollars are still there, but they are worth substantially less due to the impending inflation.
Ty for your warning. ☺
It's the least I can do. I may not be that smart but I know enough to listen to based people who are. The info I got was that FDIC has $41B in assets vs 6Tr in deposit accounts, just in the US. What a mind job
I hear ya.
No one should ever INVEST in Bitcoin, unless they understand the technology.
However, I would recommend to anyone to consider INVESTING a few hours of their life into watching Andreas Antonopoulos videos. He's the geek that puts the Bitcoin technology and how it functions into plain english. You'll be glad you did. Once you wrap your head around it, you'll be informed. There is no 'missing out'. It is NOT an investment. It is NOT a diGiTaL aSseT that gets bought/traded/valued in terms of [their] fiat...... That is simply what the bankster media has most people believing.
Watch Andreas' talks. It is very entertaining as well.
Ty. Obviously I haven't even done the bare minimum in this space - which is why I avoid it. ☺
I will take a look. Thanks.
For those of us that likely won’t get to watch the videos, what is bitcoin if it’s not a digital asset? I low-key assumed that it was created as an outlet to divert investment away from bullion as the currency crashes.
Please, do yourself a favour and invest time into understanding what Bitcoin really is..... what the tech is, how it works.
What hard money vs easy money is etc.
Then you'll understand why it is NOT a digital asset. Unless you understand the tech, it is simply impossible for me to explain to you why it is NOT a digital asset.
How does that work? So if the bank doesn’t have your money that you think you stored there, how can they repossess your house or vehicles? Or does that only apply to loans with banks you don’t have your money saved at?
If you dont make your mortgage payment or car payment, your loans go into default.
This would also happen under "normal" times.
If you default on your loan(s), you lose the asset(s).
Edit. Even if the bank you have your loan with crashes, the loan is sold as an asset to another bank. The loan has value. YOU however, still need to make the payments.
Dee, as I have been reading through these comments, it seems you have a pretty good background in finance. Glad to read your comments and thoughts. Thanks.
But if the reason I wouldn’t make my mortgage payment is because my money stored in said bank is gone, how can it be my fault it defaulted?
You took out the loan. You need to make the payment.
It is no different than if you had all your money in your sock drawer and somebody broke in and stole it.
The entity holding the loan doesn't care. They just want your payment.
This is why I stated that debt will be a killer.
I'm sorry. I don't mean to come across as flippant about this.
I think that the way our economy has been running as a debt economy we are poised for a massive awaking.
Preach it brother!
Sister. 😄
Carry on!
FDIC just used the money that’s supposed to protect the little accounts to bail out the rich silicon valley depositors.
Saw that this morning. My understanding is that there wasn't even enough FDIC money to pay out SVB depositors at 100%. Which means they are printing because there are two other banks where the depositors need to be bailed out at 100%.
EDIT: Keep in mind these depositors got reimbursed at well over the 250K limit. Oprah supposedly had over 1/2 billion in SVB.