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.
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.
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.