Do you advise holding emergency cash?

[Sam Mcgee]

I don't see that there should be a worry about a run for cash from the banks like what happened in the great depression. The vast majority of transactions are electronic now. You can function quite well without cash in today's society.

 

[TraderZones]

Quote from lrm21:

With the continued shadow run, the likely

http://www.collegenews.com/index.php?/article/wachovia_freezes_93_billion_college_fund_15923/

the possibility of a nationwide freeze or cap on bank withdraws is increasing by the day I would say from less the 1% 2 weeks ago to 5% now.

Anyone setting up emergency cash on hand, maybe 10% of cash holding.

I would imagine many people are similar to topping off the tank before the hurricane hits.

I dont see a complete freeze, but definetly the likehood of a short-term turbelence is very high.

The $700 billion will be a drop in the ocean right now.

Yes. Definitely have a couple of thousand in the house. If cannot get cash, how do you buy stuff?

Also, you need:

30 days supply of drinking water (+ for cooking). Clean water comes first.

6 months supply of dry/canned food. Honey lasts forever. Oatmeal, cereal, protein powder (Isopure is good). Many cans of veggies & soup, tuna, etc.. A few large bottles of oil - like olive oil.

Good supply of candles.

Good supply of rechargeable batteries - AAs are used in everything.

Weapon (especially at least one pepper spray. You are less likely to hesitate if accosted)

Ample supply of any prescription or OTC drugs your family uses.

Would not hurt to put window bars on your first floor windows and hide any ladders.

Keep your car and house always locked, even when you are there.

Keep your trading accounts at 2+ brokers. One good thing about IB is, you can designate multiple currencies your account is funded in. You can have Swiss Francs rather than dollars. They are large. They are conservative - not allowing things like $300 day trading margin, they are based outside a major city (CT). They have good account security.

Keep a few ounces of pure gold in your home, and good supply of junk silver coins.

 

[GermanTrader]

Quote from Sam Mcgee:

I don't see that there should be a worry about a run for cash from the banks like what happened in the great depression. The vast majority of transactions are electronic now. You can function quite well without cash in today's society.

"I don't see" is an assumption. Probably a safe one, too. But it's not being prepared. If some wacko lights off one EMP over middle America, your plastic is useless for years. And you have zero control over wackos with money and hatred for the US. I do not bet that wackos will stop being wackos.

I trade about half of my size of a month ago. The rest is out of reach of all hands except my own... for now.

 

[Lucrum]

"Do you advise holding emergency cash?"

Absolutely you never know, there maybe a toilet paper shortage.

 

[Mvic]

Quote from Lucrum:

"Do you advise holding emergency cash?"

Absolutely you never know, there maybe a toilet paper shortage.

Lol you beat me to it

 

[lrm21]

Quote from Sam Mcgee:

I don't see that there should be a worry about a run for cash from the banks like what happened in the great depression. The vast majority of transactions are electronic now. You can function quite well without cash in today's society.

I would imagine a Bank Freeze impacts everything it doesnt matter if its electronic transactions.

What matters if the bank has sufficient capital to allow transactions, whether its taking out $500.00 at the ATM, or allow $500 debit to you checking out for you light bill.

If the bank ledger is upside down, then they are insolvent, and they do not have the capital to meet the needs of depositors. They have to freeze or reduce transactions until they build a sufficient capital base.

Keep in mind the problem is fractional reserve banking.
If you have 10 million in the bank your 10 million is sufficient to prop up 100 million in deposit accounts. A bank with 1 billion in actual capital can legally support 10 billion in deposits.

The problem now is can the failures overwhelm the system. So far we are having a controlled failure with a bank or other instution failing on a weekly basis giving regulators time to handle the transactions.

If people panic however its believable that a mass redemption will overwhelm the system. It can become a selfulling prohpecy
http://en.wikipedia.org/wiki/Bank_run

Eventually it gets sorted out but in the mean time it could suck if you need funds.

 

[startraitor]

Diamonds, fine watches, and Krugerands are considered curriencies amongst those you may need to buy the protection of, outlaw biker gangs, mafia, etc. And a good rolex will get you and your family across the border or out of jail in most third world countires.

 

[crgarcia]

Quote from lrm21:

Anyone setting up emergency cash on hand, maybe 10% of cash holding.

Unless you want to buy drugs or hire prostitutes, I see no point in holding cash.

You may be robbed, and you'll lose as cash isn't insured.

Even your wife/children/maid, may steal your money, if they find it.

 

[lrm21]

Quote from crgarcia:

Unless you want to buy drugs or hire prostitutes, I see no point in holding cash.

You may be robbed, and you'll lose as cash isn't insured.

Even your wife/children/maid, may steal your money, if they find it.

So your saying if I want to enjoy Armageddon have enough on hand to tip my whore and junkie well and don't tell any of the women I know.

Thats the best advice I've heard all day!

 

[Sam Mcgee]

Quote from TraderZones:

Yes. Definitely have a couple of thousand in the house. If cannot get cash, how do you buy stuff?

Also, you need:

30 days supply of drinking water (+ for cooking). Clean water comes first.

6 months supply of dry/canned food. Honey lasts forever. Oatmeal, cereal, protein powder (Isopure is good). Many cans of veggies & soup, tuna, etc.. A few large bottles of oil - like olive oil.

Good supply of candles.

Good supply of rechargeable batteries - AAs are used in everything.

Weapon (especially at least one pepper spray. You are less likely to hesitate if accosted)

Ample supply of any prescription or OTC drugs your family uses.

Would not hurt to put window bars on your first floor windows and hide any ladders.

Keep your car and house always locked, even when you are there.

Keep your trading accounts at 2+ brokers. One good thing about IB is, you can designate multiple currencies your account is funded in. You can have Swiss Francs rather than dollars. They are large. They are conservative - not allowing things like $300 day trading margin, they are based outside a major city (CT). They have good account security.

Keep a few ounces of pure gold in your home, and good supply of junk silver coins.

That's a long list of things to keep that you hopefully would never need. What about just keeping a gun and if the worst case scenario actually happens, the gun will let you just take what you need from your neighbor.