[READ] Government worried about Bank runs? Was at the bank today...

[Sentient Void]

So I was at the bank (TD Bank) today, and they were in the process of replacing some FDIC stickers on their countertops near the teller line.

The new stickers read something along the lines of (I'm paraphrasing and going by memory):

Between December 31, 2010 and December 31, 2012, all *non-interest yielding deposit accounts* will have unlimited guarantees by the FDIC...[...]... in addition to the standard $250,000 for all deposit accounts.

Is the government worried about a sudden significant drop in confidence in the system and a much greater chance of potential bank runs within this time frame, and passing this new policy (regardless of it's insolvency) in order to instill additional confidence in the financial system to get people to resist the urge to withdraw on the fear of money not being there? We all know that the system is insolvent, and major economic problems will come down the road, but it really hit home when I saw that in the bank.

Honestly, head to your local bank and look for the stickers on and around their countertops in regards to FDIC insurance guarantees, and/or ask them if they've changed at all so you see what I'm talking about.

I hope you guys own some gold/silver!

[Sentient Void]

bump because I feel this is of note.

[TNforPaul45]

Very interesting.

[Vessol]

You know, I never understood why people feared bank runs. They used this as an excuse to create the Fed.

[Anti Federalist]

You know, I never understood why people feared bank runs. They used this as an excuse to create the Fed.

When living from paycheck to paycheck, with no cash savings on hand, no means to cash a payroll check, or now, no working credit or debit cards (a bank "holiday" means just that, a holiday, no banking of any kind) and people will come unglued after about three days. (which is what I recall reading is the average amount of food and perishables that the US family has on hand)

[Kylie]

Yep.


When the masses can't buy from their food stamp card, all hell will break loose.

[Reason]

My local bank installed massive prison style double locking doors a year ago where you enter the bulletproof 1st door into a small chamber then when the 1st door is closed the 2nd one unlocks...

[Pauls' Revere]

Can you return to the bank and quote it directly for us please? I will look at mine also.

[ghengis86]

The FDIC has a website, FYI

http://fdic.gov/deposit/deposits/changes2.html

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE
COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. *It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyers Trust Accounts ("IOLTAs").

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

[reduen]

The FDIC has a website, FYI

http://fdic.gov/deposit/deposits/changes2.html

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE
COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. *It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyers Trust Accounts ("IOLTAs").

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

I received this same notice in the mail recently from my bank..

[Brian4Liberty]

Well, it looks like a new rule for the new year, which is why they would post it today. They seem to be incentivizing non-interest bearing accounts. No doubt the banks lobbied for this. More money for the banks. Probably intended to guarantee liquidity when banks go under. More moral hazard. Yippee.

[sluggo]

Another good reason to deal exclusively with Stearns & Foster.

[Sentient Void]

The FDIC has a website, FYI

http://fdic.gov/deposit/deposits/changes2.html

NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE
COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a “noninterest-bearing transaction account” are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC’s general deposit insurance rules.

The term “noninterest-bearing transaction account” includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. *It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, money-market deposit accounts, and Interest on Lawyers Trust Accounts ("IOLTAs").

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

Yup, that's the one.

[Warrior_of_Freedom]

pretty soon banks will charge you interest just to hold your money

edit: oops I literally don't know how I bumped into this old topic

[unknown]

Since watching this video, I'm more motivated than ever to go withdraw cash.

[Slave Mentality]

Since watching this video, I'm more motivated than ever to go withdraw cash.

“You don’t want to be walking around with huge wads of cash”

Wrong, lady.

[unknown]

pretty soon banks will charge you interest just to hold your money

edit: oops I literally don't know how I bumped into this old topic

The more things "change"...