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Old 09-15-2008, 03:57 PM
 
485 posts, read 1,627,460 times
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A relative of mine is convinced we are heading into the next great depression and does not trust the bank, brokerage firms or the FDIC. He pulled out all of his money from the bank and now hides it under his mattress. All $124,000 of it.

He had to get the approval of a bank vice president to get all his money out of the bank and into currency. He spent almost an hour arguing with them and had to come back later in the day to collect his money.

I would at least put some of it in safety deposit box but he does not trust the bank with their key.

Is this man a genius or an idiot in today's strange ecomonic times?
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Old 09-15-2008, 04:01 PM
 
Location: Earth
1,442 posts, read 3,569,857 times
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Let's revisit this in 3, 6, 9, and 12 months. Who knows!

My 401k was down 11% as of the 12th...I am pretty leery of seeing what the slide is after today.

Time to start drinking.

Booze, porn, and tobacco should ride high on this recession wave, eh?
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Old 09-15-2008, 04:07 PM
 
1,811 posts, read 5,141,085 times
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Quote:
Originally Posted by Refugee56 View Post
A relative of mine is convinced we are heading into the next great depression and does not trust the bank, brokerage firms or the FDIC. He pulled out all of his money from the bank and now hides it under his mattress. All $124,000 of it.

He had to get the approval of a bank vice president to get all his money out of the bank and into currency. He spent almost an hour arguing with them and had to come back later in the day to collect his money.

I would at least put some of it in safety deposit box but he does not trust the bank with their key.

Is this man a genius or an idiot in today's strange ecomonic times?
Actually, I believe it is illegal to keep your money under your mattress. You might also want to tell your friend that I know someone who's house burned down. They had something like $45,000 hidden in their house...all gone. So his money is not necessarily any safer at home. If he's telling you and you are posting it here, who else knows what he has in his house?

If he doesn't trust the bank, he could divide up his assets among several banks and other investments. That way if one bank goes under, he still has his funds in other places.
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Old 09-15-2008, 04:09 PM
 
Location: Earth
1,442 posts, read 3,569,857 times
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Tell your relative to go buy a fire safe to keep the money in....per previous poster's comment...
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Old 09-15-2008, 04:14 PM
 
1,956 posts, read 4,677,050 times
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Quote:
Originally Posted by tamitrail View Post
Actually, I believe it is illegal to keep your money under your mattress.
It is definitely stupid, but I have a very hard time believing it's illegal. America isn't that fascist...yet...
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Old 09-15-2008, 04:23 PM
 
Location: Newport Beach, CA
47 posts, read 151,412 times
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I would never leave that much money in the house.

If he wants to be safe, I agree that I would split it between a different financial institutions. The FDIC will insure up to $100K. Whether your friend trusts the bank or not, I have no doubts (given the recent take over of Fannie and Freddie), that the government will make sure the FDIC will make good on insuring deposits from banks that go under.
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Old 09-15-2008, 04:29 PM
 
1,811 posts, read 5,141,085 times
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Quote:
Originally Posted by Shuffler View Post
Tell your relative to go buy a fire safe to keep the money in....per previous poster's comment...
Great idea! Then it's all wrapped in a nice little package for a burglar to run off with.
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Old 09-15-2008, 04:41 PM
 
Location: where you sip the tea of the breasts of the spinsters of Utica
8,305 posts, read 11,808,465 times
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My dad did this back in the eighties when someone wrote a doomer book, pulled it all out and put it in a safe. He left half of it out one the bed after counting it, and forgetfully left it there for a few hours. All gone.

I don't know what the answer is. Someone on another site wrote about a friend who had left gold coins in a SWISS bank safe deposit box, and found out after paying for storage for many years that it had been taken and turned into some sort of fund thingy, where she could get the spot price for that weight in gold - in dollars, I suppose, or francs.

That's anecdotal though, I don't know the person.

But if it's true that a Swiss safe deposit box isn't safe anymore, what is?
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Old 09-15-2008, 04:43 PM
 
1,651 posts, read 2,702,989 times
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Quote:
Originally Posted by Refugee56 View Post
A relative of mine is convinced we are heading into the next great depression and does not trust the bank, brokerage firms or the FDIC. He pulled out all of his money from the bank and now hides it under his mattress. All $124,000 of it.

He had to get the approval of a bank vice president to get all his money out of the bank and into currency. He spent almost an hour arguing with them and had to come back later in the day to collect his money.

I would at least put some of it in safety deposit box but he does not trust the bank with their key.

Is this man a genius or an idiot in today's strange ecomonic times?
Just make sure he hides it from outsiders. He has done the right thing and soon I'm following suit.
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Old 09-15-2008, 04:55 PM
 
1,811 posts, read 5,141,085 times
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Quote:
Originally Posted by Movie Lover View Post
Just make sure he hides it from outsiders. He has done the right thing and soon I'm following suit.
And this panic is going to cause further troubles. If everyone starts taking all their money out of the banks, they are sure to collapse.
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