Are USA bank accounts secure?

[sergio]

I never thought I'd have this worry: Are FDIC insured bank accounts in the US secure? What do you think? I ask because I've heard from a couple of people in the US who say they've withdrawn large sums to keep in their homes. I think it's partly because they worry about access to bank accounts in the event of quarantine but also they're not dismissing the idea of the collapse of the US economy.

 

[lunar]

I believe as a part of the stimulus package, the Fed also cut reserve requirements for banks to zero.

Reserve Requirements

The Federal Reserve Board of Governors in Washington DC.

www.federalreserve.gov

 

[steveinbsas]

I never thought I'd have this worry: Are FDIC insured bank accounts in the US secure? What do you think? I ask because I've heard from a couple of people in the US who say they've withdrawn large sums to keep in their homes. I think it's partly because they worry about access to bank accounts in the event of quarantine but also they're not dismissing the idea of the collapse of the US economy.

If a more precise way to describe a "collapse of the US economy" would be a "collapse of the US dollar" it won´t matter where their dollars are.

That being said, if the dollar does not lose its value (aka purchasing power) and the banks limit withdrawals (because they actually don´t have the cash on hand to dispense in the event of a run on the banks by depositors), the people who already have their money at home will obiously be very glad they didn´t leave it in the banks.

If the banks could give all of the depositors all of their money, that probably would collapse the economy.

 

[lunar]

... the people who already have their money at home will obiously be very glad they didn´t leave it in the banks.

Not necessarily. Nothing stops the government from saying: "Tomorrow we will be changing old money for the new money. If you have cash, you can exchange two monthly salaries only".

 

[Ceviche]

I read that the wise advise - that its best to diversify as much as possible. Have money in different countries, in different currencies ; in different banks have some precious metals at home - some in a vault abroad ; some crypto, some us$ and pesos in cash at home..some land to grow crops, some apartment..in a different country to escape to, etc etc

you will do fine, if you don't keep all eggs in one basket.

 

[on the brink]

I read that the wise advise - that its best to diversify as much as possible. Have money in different countries, in different currencies ; in different banks have some precious metals at home - some in a vault abroad ; some crypto, some us$ and pesos in cash at home..some land to grow crops, some apartment..in a different country to escape to, etc etc

you will do fine, if you don't keep all eggs in one basket.

Additionally, you might consider buying one of these - they start at US$25,000

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Want to ride out the apocalypse in absolute luxury? Inside a new underground bunker with all the amenities.

www.forbes.com

 

[steveinbsas]

Not necessarily. Nothing stops the government from saying: "Tomorrow we will be changing old money for the new money. If you have cash, you can exchange two monthly salaries".

As far as I know, the US dollar has never been recalled or replaced, though it is no longer backed by silver or gold.

It may not be the case in the US that "nothing stops the government from changing old money for new money" from one day to the next (aka tomorrow).

I believe that would require legislation which would have to be approved by Congress and signed into law by the President.

Given the epression "two monthly salaries" I´m guessing it has happened here in Argentina?

 

[lunar]

As far as I know, the US dollar has never been recalled or replaced, though it is no longer backed by silver or gold.

There is a first time for everything. This is a global crisis.

The idea of hoarding cash is an old school thinking. I don't think it still makes much sense with widespread debit card usage, and handling cash being an infection vector.

We are not getting bombed, the infrastructure is still there.

 

[Caribbean Cool]

The crises must be close to an end.....the fringe is starting to vibrate with anxiety.

 

[gracielle]

20 March 2020
www.pbs.org/newshour/economy/federal-reserve-to-lend-additional-1-trillion-a-day-to-large-banks