Are you going to pull your money out of the bank?

Question

With the IndyMac bank seizure, I am considering in pulling my money out of the bank. It's not a whole lot but, i need it. I've looked at my bank's ratings which is pretty good right now so I am going to wait and see. I will be closely watching the banking industries conditions. I fear a stock market crash like 1929 because of all the high speculation on oil stocks and the borrowing of money to buy stock. Even with the FDIC, I don't see how taxpayers will be able to bail out our accounts considering all the debt in government. World War II got out us out of the last great depression, but another one won't if it goes nuclear.

Answer 1

If the banks close and the Fed is bankrupt, which it is close to being, how will they be able to cover the insured portion of what we are owed? They won't be able to. The Federal Reserve has done nothing but scam us since its creation and cause our dollar to be nearly worthless.. Our government has been working in concert with them to help bankrupt our country and dilute the dollar so much, which is the REAL reason that things seem so expensive today.. Items aren't worth MORE, our dollar is worth LESS.. I'm also considering taking my money out..

Answer 2

Most likely your account is FDIC insured up to $100,000.  Since you don't have a whole lot, I will assume it's less than the Federal Government insures you for.  This means you have nothing to worry about.  Why nothing you ask?

Because - if you take out your money your dollar is worth - a dollar.  If the FDIC has to bail out a whole bunch of banks, then the dollar is worth less (i.e. we print more money) as compared to other currencies.  But - the dollar that is provided via the FDIC insurance is still worth a dollar.  A dollar equals a dollar.

The only way you'd come out ahead is if you store the dollar you take out today in something that isn't based on the dollar - like another a commodity such as Gold.  Then, if the banking system really fails, or their is another depression, you'll your dollar will be worth what the dollar used to be worth the day you took it out of the bank.  Of course, if you remember the Great Depression, or read your history, you'd know that those smart enough to buy Gold were told to surrender it.  Why?  Because the dollar used to be based on Gold.  But, the government only held 10% in Gold of what was actually printed.  So, when there was a run on withdrawels, there was no Gold to back it up.  The Government couldn't pay it's debt.  The USA went bankrupt.... and we surrendered our banking system to the privately held Federal Reserve (12 private international banks).