Bank Runs Feared

[dellinger63]

You've been warned and are a fool if you stay w/Citigroup.

http://www.prisonplanet.com/citigrou...thdrawals.html

[Riot]

You have heard of the Federal Deposit Insurance Corporation, right?

[dellinger63]

Originally Posted by Riot

You have heard of the Federal Deposit Insurance Corporation, right?

You just don't get it. In your opinion the economy has hit bottom and we're coming back. Get a clue!

[SCUDSBROTHER]

You read the comments on that site? That's a wild bunch there. Bringing up Bible Prophecy, Sodomites etc. They make the DT Conservatives look down right sedate.

[dellinger63]

Originally Posted by SCUDSBROTHER

You read the comments on that site? That's a wild bunch there. Bringing up Bible Prophecy, Sodomites etc. They make the DT Conservatives look down right sedate.

all that's missing is the Turks

[Riot]

Originally Posted by dellinger63

You just don't get it. In your opinion the economy has hit bottom and we're coming back. Get a clue!

Well, thanks for trying to tell me what I think, but in my opinion the economy has hit bottom, but it will be a markedly longer than usual haul back, and there is still a real possibility of a significant double dip.

That said, the "Move your money" campaign (move out from the big, bailed out banks) appears to have had some success.

[dalakhani]

Okay, I am going to feed into the hysteria. Bank runs are indeed very possible...if the government takes off the respirator.

Banks can make money right now because of the steep yield curve. Consumers and businesses can still make payments on adjusting rates because the adjustments are in many cases driving payments DOWN. Now what happens if the government stops intervening and yields start to climb? It doesnt take a rocket scientist to see how the dominoes will fall.

The US will do everything in its power to keep rates low for as long as the eye can see. A rise in rates will be devastating to the economy regardless of what bernanke or anyone says. We are buying time right now...and we need a lot of it to fix this mess.

So has the economy hit bottom? I think there is validity to the statement that we were as close as can be in the fall of 2008 without it completely toppling. Could we be there again?

Rates are going to have to stay low and the government is going to keep having to play a large role in our economy. Unless of course there is a better plan. If so, Im all ears.

[Riot]

Originally Posted by dalakhani

Now what happens if the government stops intervening and yields start to climb? It doesnt take a rocket scientist to see how the dominoes will fall.

Hey, finally a free-market economy, just as many here want

[randallscott35]

Originally Posted by dalakhani

Okay, I am going to feed into the hysteria. Bank runs are indeed very possible...if the government takes off the respirator.

Banks can make money right now because of the steep yield curve. Consumers and businesses can still make payments on adjusting rates because the adjustments are in many cases driving payments DOWN. Now what happens if the government stops intervening and yields start to climb? It doesnt take a rocket scientist to see how the dominoes will fall.

The US will do everything in its power to keep rates low for as long as the eye can see. A rise in rates will be devastating to the economy regardless of what bernanke or anyone says. We are buying time right now...and we need a lot of it to fix this mess.

So has the economy hit bottom? I think there is validity to the statement that we were as close as can be in the fall of 2008 without it completely toppling. Could we be there again?

Rates are going to have to stay low and the government is going to keep having to play a large role in our economy. Unless of course there is a better plan. If so, Im all ears.

Let people continue their false sense of FDIC etc....Electronic bank runs have already happened when MM funds broke the buck back in Sept '08.

[Riot]

Originally Posted by randallscott35

Let people continue their false sense of FDIC etc....Electronic bank runs have already happened when MM funds broke the buck back in Sept '08.

Are you maintaining you'll never get FDIC insured money if there is a run on a bank? Yes, the bank may run out of cash and go broke,and you may not get your money that day, but you'll get your FDIC insured money back. You say no? Did people not get their FDIC money back with MM Funds? Or was that not FDIC insured money?

Seriously - I'm not willing to go back to the 1700's, with all of us carrying around bags of gold protected by our guns.

[randallscott35]

Originally Posted by Riot

Are you maintaining you'll never get FDIC insured money if there is a run on a bank? Yes, the bank may run out of cash and go broke,and you may not get your money that day, but you'll get your FDIC insured money back. You say no?

Seriously - I'm not willing to go back to the 1700's, with all of us carrying around bags of gold protected by our guns.

http://market-ticker.org/archives/19...-Accounts.html

[Riot]

Originally Posted by randallscott35

http://market-ticker.org/archives/19...-Accounts.html

Ah, I got you now - going back to the article within the one you quoted. Looks a really nasty fee scam to screw customers. But I still don't understand what this has to do with possible bank runs.

So buyer beware. If you are with Citi, you have a month and a half read the fine print on your accounts, and to take control and responsibility for your own financial well-being.

"Effective April 1, 2010, we reserve the right to require (7) days advance notice before permitting a withdrawal from all checking accounts. While we do not currently exercise this right and have not exercised it in the past, we are required by law to notify you of this change."

And Citi says it applies only to Texas.

What is federal banking law regarding this type of stuff - Dala?

[randallscott35]

Originally Posted by Riot

Ah, I got you now - going back to the article within the one you quoted. Looks a really nasty fee scam to screw customers. But I still don't understand what this has to do with possible bank runs.

So buyer beware. If you are with Citi, you have a month and a half read the fine print on your accounts, and to take control and responsibility for your own financial well-being.

I will say anything is possible. The last year and a half should prove that.

[dalakhani]

Originally Posted by randallscott35

I will say anything is possible. The last year and a half should prove that.

Randall-

Im not going to deny your point about the FDIC. It is a colossal (sp?) fraud when put up even against AIG. You simply can't guarantee a zillion times over your assets.

At the same time, an FDIC collapse would spell an economic collapse because that would be one of the last dominoes to fall. No? And if that is the case, WHERE we have our "money" would be the least of our problems. No?

[randallscott35]

Originally Posted by dalakhani

Randall-

Im not going to deny your point about the FDIC. It is a colossal (sp?) fraud when put up even against AIG. You simply can't guarantee a zillion times over your assets.

At the same time, an FDIC collapse would spell an economic collapse because that would be one of the last dominoes to fall. No? And if that is the case, WHERE we have our "money" would be the least of our problems. No?

But remember what countries have done when they have even selectively defaulted....Argentina basically made it so you could only take out "x" from a bank account during a time period and changed the nature of the accounts themselves with regard to currency change transactions...I would agree it is a very small chance, I just don't view FDIC the same way as most is all.

[dellinger63]

Originally Posted by Riot

So buyer beware. If you are with Citi, you have a month and a half read the fine print on your accounts, and to take control and responsibility for your own financial well-being.?

and if you had followed your own advice and applied it to reading the fine print on your health insurance policy there would be a lot less bitching out of you.

[Riot]

Originally Posted by dellinger63

and if you had followed your own advice and applied it to reading the fine print on your health insurance policy there would be a lot less bitching out of you.

What an ignorant thing to say.

Do you not understand the truth that everyone on this list, everyone who has insurance - that includes YOU - has the very same same fine print in their insurance policies?

The fine print that says the contract you bought with money, the contract you signed, is fluid? The insurance company can change the terms of the policy at any time they want, for whatever reason they want? And there is no laws that prevent this?

Do you think you are magically special and it couldn't possibly happen to you, your family, your parents?

You don't think you could be admitted to the hospital for a procedure; and you, the doctor, and the hospital call your insurance company beforehand and get approval from them for payment (you cannot get admitted to a hospital nowadays without payment being worked out beforehand) - and later the insurance company simply changes it's mind, and decides it will not pay?

If your insurance company says you are covered, and that they will pay for this procedure, wouldn't you go ahead with the operation you need, because the insurance company guaranteed to the hospital and surgeon they'd pay for it?

[dellinger63]

Originally Posted by Riot

What an ignorant thing to say.

Do you not understand the truth that everyone on this list, everyone who has insurance - that includes YOU - has the very same same fine print in their insurance policies?

The fine print that says the contract you bought with money, the contract you signed, is fluid? The insurance company can change the terms of the policy at any time they want, for whatever reason they want? And there is no laws that prevent this?

Do you think you are magically special and it couldn't possibly happen to you, your family, your parents?

You don't think you could be admitted to the hospital for a procedure; and you, the doctor, and the hospital call your insurance company beforehand and get approval from them for payment (you cannot get admitted to a hospital nowadays without payment being worked out beforehand) - and later the insurance company simply changes it's mind, and decides it will not pay?

If your insurance company says you are covered, and that they will pay for this procedure, wouldn't you go ahead with the operation you need, because the insurance company guaranteed to the hospital and surgeon they'd pay for it?

I've never had arthritis and if I did I'd admit it before obtaining the policy. Man/Woman up and admit your mistake and go on w/life. Stop the bitching.

I have watched my diet, exercised and do not smoke cigs. To make me subsidize someone who either because of stupidity or laziness didn't follow common sense prevention is equal to holding me up at gun point IMO only I can’t fire my 9mm at the thief.

[hi_im_god]

Originally Posted by Riot

What an ignorant thing to say.

Do you not understand the truth that everyone on this list, everyone who has insurance - that includes YOU - has the very same same fine print in their insurance policies?

The fine print that says the contract you bought with money, the contract you signed, is fluid? The insurance company can change the terms of the policy at any time they want, for whatever reason they want? And there is no laws that prevent this?

Do you think you are magically special and it couldn't possibly happen to you, your family, your parents?

You don't think you could be admitted to the hospital for a procedure; and you, the doctor, and the hospital call your insurance company beforehand and get approval from them for payment (you cannot get admitted to a hospital nowadays without payment being worked out beforehand) - and later the insurance company simply changes it's mind, and decides it will not pay?

If your insurance company says you are covered, and that they will pay for this procedure, wouldn't you go ahead with the operation you need, because the insurance company guaranteed to the hospital and surgeon they'd pay for it?

insurance policy's are "contracts of adhesion". what that means is that one side (the insurer) wrote the contract and gave the other side (you), the option to say yes or no. you can't negotiate the terms offered.

courts will interpret any ambiguity in this kind of contract in favor of the party that didn't write it.

i work for an insurance company (please don't hate me). we never make any kind of serious coverage decision absent this awareness. we have a lot of attorneys and most of the time we pay them to have them tell us "you better cover that".

i work in property and casualty which may be very different than health. i also work in california and not kentucky. but the interpretation of contract law can't be all the different where you are.

if you were told you were covered, depended on that assurance, incurred an expense and the insurance company subsequently reneged, you need to talk to a bad faith attorney. do it as soon as possible.

[Riot]

I've never had arthritis and if I did I'd admit it before obtaining the policy.

As I wrote here, I did. As I also wrote here, the insurance company says I did, too.

Man/Woman up and admit your mistake and go on w/life. Stop the bitching.

Dell, does that whoosing sound going by your ears ever make you stop and think?