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Imagine trying to withdraw money from the bank and they don’t have it.
What is a run on the bank? When a large number of people want to withdraw their money from a bank because they’ve lost faith in the banks ability to give them their deposits when asked.
This is when depositors learn the bank doesn’t have all their money. It’s a house of cards, a sham, fake.
If this happens to enough depositors the bank can collapse and go out of business. You see the wizard behind the curtain, lose faith in the system.
What is fractional reserve banking?
The bank only needs a fraction of what you deposit on hand at the bank on any given day. You deposit $100, they are only required to keep $20 on deposit.
Where is your other $80? What if they’re lending it out for loans on cars, mortgages, & for credit cards, etc. What interest do they earn? From 4% to 29%. What interest do they pay you? .25% on CD.
Solution?
Buy a floor safe, free standing safe, or a gun safe. Floor safes can be installed before concrete is poured, others can be bolted to the concrete slab, wood flooring, or wall studs.
Benefits: You have immediate access to your cash/valuables at all times. Many are fireproof. Don’t go cheap. Deadbolts in door, key and combination to access.
You can still bank with your favorite bank for checking. Deposit money used primarily to pay bills via checks or debit cards.
If bank shuts down due to bankruptcy, how long will it take to recover the contents of a safe deposit box? They own the metal box, you own the contents.
You won’t get your checking/savings deposits back, they will be used to pay the banks creditors in the BK.
Resource:
The Creature From Jekyll Island – by G. Edward Griffin
Debt Shepherd 2017, All Rights Reserved
