Saturday, October 11, 2008

"Run on the Banks" ?

Every day new headlines, It'll get worse before it gets better, seems to be the consensus. Historic proportions. Comparisons to the Great Depression.

What is a "Run on the Banks"? How would YOU know if it started or is going on?
If you pull extra cash out of your bank accounts ... is that a "Run on the Bank"?
If you pull ALL your money out that a run on a bank?
Does the amount withdrawn matter? eg. 50% of your money but more than 25,000
or 100% but it's less than 10,000.
What if you wait until your neighbor withdraws first and then you withdraw some yourself is that a Run on the Banks?

The wealthy diversify and protect themselves many different ways. They use different banks - domestic (FDIC insured) and international (currency risk hedge). They use different asset classes.... Gold, Silver, Art, Diamonds etc. Many have multiple revenue streams or relatively liquid assets and can weather out a storm lasting
3-5 YEARS. Can you?

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