Us Default: Take Your Money Out

[tripods68]

This is normal when there is a RUN on the bank. But US DEFAULTING is like ARMAGEDDON; people unable to take all their cash out the BANK if everyone else start doing ALL at the same time. Federal Reserve won't be able to keep INTEREST RATE artificially low going forward. Mortgage rates will instantly go up on EVERYONE. Credit CARD rates will suddenly SHOOT UP! Consumer products; groceries and food prices go up too. Everything will go UP!

To prepare, we are taking all our available cash savings (EF, MMAs, Kids savings) as a precautionary tale for now August 2 (we're leaving on vacation for a week and won't be back till August 3rd). To see what happen. But we are not taking any chances in case our Credit Union start locking its doors.

Lastly, we are paying off our existing credit balance $1000 next week so owe NO credit card balance.


Are people NOT worried about this scenario like I am?

[97guns]

finally someone here with some sense. not everything is peaches and cream like everyone else is seeing. ive already prepared. please research the crash of argentina, it will happen here and hit much harder. it will happen so fast you wont even know what hit you, they will be thieves in the night.

[97guns]

get ready to spend that cash, we could see everything hyperinflate. might want to buy some extra food and resources.

[Joan.of.the.Arch]

Mmm, munch-munch. Crunchy yummy good gold, eh 97guns? I like my gold with mayo, but DH prefers his with BBQ sauce.

[Joan.of.the.Arch]

Actually, I was just funnin' you. I really do know several people whose lives were saved by being able to sell/trade their precious jewelry: An extended family of Vietnamese who were among the famous "boat people"; a woman who got out of Kabul and to the US where family were sponsoring her for immigration; an Iraqi family who were fleeing persecution under Saddam Hussein and wound up first in Syria, then Canada, then the US; and to a lesser extent (they also sold/traded their car) one of those Argentinian families who came to the US. I also know a woman who just sold her gold bracelet she's worn since childhood--in anticipation of being able to pay her gas heating bill next winter. She has arthritis and suffers more in a cold house.

[KTP]

So you take out all this cash...and do what with it? Get robbed?

If you are 100% sure there is going to be a "road warrior" type future, then you should use the cash to buy about 1000 pounds of rice and beans, a water purifier, some guns and ammo, and perhaps 2000 gallons of gas and some solar panels or a wind generator.

When there is no default, the rice and beans will rot. The guns and ammo and gas might be ok though...and the solar panels will at least look kinda cool.

Or there is a default and you were right, but the next door neighbor who is an ex navy seal and has just gotten screwed out of his pension comes over and takes your gun and food as easy as taking candy from a baby.

Good plan!

[tripods68]

Take the scenario in jest. People are typically reactive mode toward survival than proactive until it's to late! A lot of things could happen now than next week. We could have deal BUT!

[KTP]

In the very worst case my hardest choice as I sit back with a cold beer and 50 tablets of Vicodin will be do I want to listen to "It's the end of the world as we know it" or "Eve of Destruction".

I can't sleep most nights thinking about this choice because both are great songs.

[tripods68]

I remember when Bush II said, "Live your life" post 9/11. But American life after his PRESIDENCY hasn't been the same. We had first Internet bubble. Followed by the biggest housing bubble in US history which most American knew at that time was unsustainable. The market proved right. We have the biggest MELTDOWN since the great Depression. American lost 4 or 5 trillions net worth (made up mainly by house equity value). Trillions of debt piled fighting TWO wars; passed Medicare Plan D and Bush Tax Cut ALL were unpaid for. A thousand banks CLOSED and still on-going, while there are 7 still millions of people UNEMPLOYED and Wages stagnant since 1979.

Now its possible US will default! You CAN'T assume anything but the WORST!

Even if there is a deal, how will the financial market react in the months following or a year or two.

[disneysteve]

Originally Posted by tripods68

We have the biggest MELTDOWN since the great Depression. American lost 4 or 5 trillions net worth (made up mainly by house equity value).

While it is true that there was a big recession and housing bubble and folks did experience paper losses in their portfolios, most folks who hung on have recovered nicely. Our net worth is the highest it has ever been today. As for housing values, they were insanely inflated and may not ever go back to those ridiculous levels so folks who panicked and bought at the peak of the market probably won't ever see that money again, but those who bought within their means and didn't get sucked into the insanity will do just fine.

Sorry, I don't subscribe to the Chicken Little theory of economics. I don't believe the sky is falling now or tomorrow.

[KTP]

Originally Posted by disneysteve

Sorry, I don't subscribe to the Chicken Little theory of economics. I don't believe the sky is falling now or tomorrow.

+1

Anyway, it is just as likely that whereever you run to escape said falling sky, you are going to get just as flattened. If the sky ever does fall, you probably won't even know what hit you.

[cypher1]

Originally Posted by tripods68

Take the scenario in jest. People are typically reactive mode toward survival than proactive until it's to late! A lot of things could happen now than next week. We could have deal BUT!

With anything possible in life, I'm more concerned about a zombie apocalypse or *insert random natural disaster*.

Originally Posted by KTP

In the very worst case my hardest choice as I sit back with a cold beer and 50 tablets of Vicodin will be do I want to listen to "It's the end of the world as we know it" or "Eve of Destruction".

I can't sleep most nights thinking about this choice because both are great songs.

Mine will be "Last Night on Earth" lined with up bottles of Stella, Blue Moon, Fat Tire, Boulevard, Two Hearted Ale and Negra Modelo. I have no shame.

[Scanner]

remember when Bush II said, "Live your life" post 9/11. But American life after his PRESIDENCY hasn't been the same. We had first Internet bubble. Followed by the biggest housing bubble in US history which most American knew at that time was unsustainable. The market proved right. We have the biggest MELTDOWN since the great Depression. American lost 4 or 5 trillions net worth (made up mainly by house equity value). Trillions of debt piled fighting TWO wars; passed Medicare Plan D and Bush Tax Cut ALL were unpaid for. A thousand banks CLOSED and still on-going, while there are 7 still millions of people UNEMPLOYED and Wages stagnant since 1979.

Now its possible US will default! You CAN'T assume anything but the WORST!

Even if there is a deal, how will the financial market react in the months following or a year or two.

Yes, but don't worry. . .we have the "Rich", I mean, "Job Creators" back.

In fact, the Republicans just drafted a plan for helping the Job Creators (apparently, everyone else doesn't really matter).

[tripods68]

Originally Posted by Scanner

Yes, but don't worry. . .we have the "Rich", I mean, "Job Creators" back.

In fact, the Republicans just drafted a plan for helping the Job Creators (apparently, everyone else doesn't really matter).

Ronal Reagan is rolling his grave just about now!

[kork13]

No offense, but I see it as fear mongering. Congress isn't (quite) so stupid or worthless as to let the US default. Just like they've done with every so-called "crisis" in the last year or two, they're going to play political games for the remaining 2 weeks or so, then in the day or two before the 'deadline', they'll magically come up with a "compromise."

I absolutely believe the Congress is broken, but they won't cause the entire US financial system to buckle -- that would destroy their re-election possibilities!!!

So what will I do? Continue living my life completely ignoring the idiotic politics within the Beltway.

[disneysteve]

Originally Posted by kork13

No offense, but I see it as fear mongering. Congress isn't (quite) so stupid or worthless as to let the US default. Just like they've done with every so-called "crisis" in the last year or two, they're going to play political games for the remaining 2 weeks or so, then in the day or two before the 'deadline', they'll magically come up with a "compromise."

I absolutely believe the Congress is broken, but they won't cause the entire US financial system to buckle -- that would destroy their re-election possibilities!!!

So what will I do? Continue living my life completely ignoring the idiotic politics within the Beltway.

I agree completely. There is no way they would let a default happen. Remember, these guys are all multimillionaires. They don't want to see their net worths evaporate any more than you and I do. It's all a game.

[Snodog]

Hmmm...so the conservatives are threatening to blow up the economy if tax cuts for the top 2% are raised and at the same time wanting to cut social security and medicare (which they hate). I have to admit it's a bold move.

-is bold the right word?

Actually some are even threatening to deep six the economy no matter what deal is done!

I agree with DS and kork that this is nothing to worry about(it will get raised). Worst case scenario- debt ceiling doesn't get raised by Aug 2 and a few social security checks don't get mailed. THEN the debt ceiling will be raised pronto!

[tripods68]

Originally Posted by Snodog

Worst case scenario- debt ceiling doesn't get raised by Aug 2 and a few social security checks don't get mailed. THEN the debt ceiling will be raised pronto!

BTW, there is no PLAN B. PLAN B that means the US DEFAULTED. STOCK MARKET will PLUNGE once again, far more deeper like we had in Fall 2008. All HELL will break lose after that---"Say hello to my little friend" 401(k)


There is ONLY PLAN A which is to say, US need to raise the "debt ceiling", like the 40 times that Congress passed prior to Obama.

[Snodog]

Originally Posted by tripods68

BTW, there is no PLAN B. PLAN B that means the US DEFAULTED. STOCK MARKET will PLUNGE once again, far more deeper like we had in Fall 2008. All HELL will break lose after that---"Say hello to my little friend" 401(k)


There is ONLY PLAN A which is to say, US need to raise the "debt ceiling", like the 40 times that Congress passed prior to Obama.

I doubt we are all going to be picking lettuce and using crank flashlights. Although I do agree if the debt is not raised things would deteriorate quickly.

Go on your vacation and have a good time and when you come back everything will be OK. Remember the old saying: 'God Looks After Drunkards, Fools and The United States of America.'

[bjl584]

Originally Posted by tripods68

BTW, there is no PLAN B. PLAN B that means the US DEFAULTED. STOCK MARKET will PLUNGE once again, far more deeper like we had in Fall 2008. All HELL will break lose after that---"Say hello to my little friend" 401(k)


There is ONLY PLAN A which is to say, US need to raise the "debt ceiling", like the 40 times that Congress passed prior to Obama.

If the markets do crash again, then I will be first in line to start buying. That way I can ride the upswing just like I did when it crashed in 2008.