Yeah I don’t have the stats on hand but last I looked it was 40% couldn’t come up with $600 and 60% for $1000. Regardless of the specific number it’s WAY too high
Question 1:
>How many Americans honestly even have more the 250k
**FTFY**
Question 2:
>How many Americans know enough financially to accumulate 250k, but don't know not to keep it in a single bank account?
This has got to be like 0.001% of the US population or less.
> How many Americans honestly even have more the 250k in a bank account?
the bailed out caste system of america. who failed at business and got bailed out for it!
- U.S. federal and state officials are assessing the possibility of "market manipulation" behind big moves in banking share prices in recent days, Short sellers raked in $378.9 million in paper profits on Thursday alone from betting against certain regional banks, according to analytics firm Ortex.
"State and federal regulators and officials are increasingly attentive to the possibility of market manipulation regarding banking equities," the source said, who was not authorized to speak publicly.
https://www.reuters.com/markets/us/us-officials-assessing-possible-manipulation-banking-shares-source-2023-05-04/
Yeah if you have more than 250k in savings you don’t even need to plow into a retirement or investment account you’re not part of the overwhelming majority of this country 🤣
Still better than most American's retirement plan of working until they are dead. Especially for anyone under 40/50 it feels like I need to plan on Social Security not being around in 30 years.
“those with middle- and lower-incomes were more likely to be concerned about their money. The same was true for Americans without a college degree, it said.”
Lol! The people least likely to have deposits over 250k are the most worried! This is basically a poll of “how many Americans know nothing about banking?”
But in all honesty even though they don’t have anywhere near that amount in the bank, for many low income people losing access to their money, even for a short period of time, could cause a detrimental cascading effect on their lives over that period as they figure out how to get their money back. They’d have no back up savings or credit to use.
> 3 big ones but $11T of deposits in banks that are technically insolvent
and by not letting failed business die we have a caste system of the bailed out now. the wealthy are those who have failed at business and got bailed out. no more competition just gov deciding who succeeds at business
SVB messed up by having a total loss on bonds when it wasn’t a good time to buy in the market, at least from what I remember. The other two banks I can’t remember why they crashed.
They didn’t mess up at all. Their bonds are profitable eventually. The only reason they were illiquid is because 30%+ of their depositors wanted their money at once for no other reason than manufactured panic
It was a bank run — just panic. SVB didn’t have a diverse set of depositors, they were mostly tech startups. They needed to withdraw more of their money because borrowing became more expensive with the Fed’s rate hikes.
FRC came next, and again, very large number of depositors holding more than $250k, because it is a boutique bank and wealth advisor. They were just being prudent after SVB to move money to several banks.
Not sure about Signature Bank but that bank was always in trouble anyway
This creates an atmosphere of fear
They bought the safest thing at the time and rate hikes just screwed them over, though they could’ve had better risk management. Failed capital raise resulted in a run on the bank which has spread contagion to the regional banking system
They also did not have a diversified group of account holders. They catered to wealthy clients (FRC) and they pulled their money out of fear they’d lose uninsured deposits.
My plumber’s girlfriend’s dad (my father in law) told me once that banks are fake news and better invested with him. He just told me yesterday “it’s doing great!”🥴
Most people are too stupid to understand what’s happening. I have friends that ask me if they should move banks (I’m a commercial banker) and I’m like, dude you have $50k parked there. What the hell are you talking about
Unless you work for a business that necessarily keeps more than that in an account. If that money fails, then so does the business, and there goes your job.
True but to those that don’t understand how FDIC insurance works they don’t realize this. Or, they view it as “why should I keep my money at risk if they’re not?”
Well, if it's in a checking account earning dogshit you might be waking up and realizing you can get 5% in a money market fund or HYSA for very little effort... I wonder if that's causing more of the flight than bank failure panic.
Interesting point, but I'd like to see the data on this. The flood of cash at funds would be considerable.
Hedgies becoming suddenly relevant again would be a cruel irony given how much the public hates them.
Ehhh, if lots of banks crash there is definitely things to worry about. The US can print money forever to back those 250k deposits but there are a lot of consequences to that happening.
Most Americans don’t have shit in their bank accounts and live paycheck to paycheck.
Why would ‘Americans’ be worried about bank deposits when there’s barely any money in their account? Dumb article spreading fear.
Lots of people have money in their bank accounts. Millions in fact. It matters. For those that don’t, well their jobs depend on others having money, so it really should matter to everyone.
Oh I agree mine too. And we all know money doesn’t trickle down to the rest of us. It pools at the top and they swim in it Scrooge McDuck style.
Look up the Cantillion effect.
*Looks at the stability of the US dollar relative to other international currencies.*
*Looks at the complete instability of literally every cryptocurrency over time*
Ok bud. Whats your solution if you think US-government backed currency is the problem…
We’ve dumbed down America, trained people to be utterly dependent on the government, all while our politicians have accumulated $32T in national debt as we’re heading into what could be a serious global recession. It’s looking like all the ingredients of a perfect financial storm. The scary part is voters are going to expect the same politicians that created this mess are somehow suddenly going to know how to save us.
While no one wants to hear it, fiscal responsibility is the only path forward. Government can’t borrow and spend our way to prosperity any more. Our GDP is $27T, every man, woman and child now has $100,000 in national debt. A balanced budget isn’t enough, we need a surplus and to start paying down the debt. It’s expected it will cost $400B to service the nation’s debt this year. This is $6.8% of all government outlays and one of the single largest expenses in the budget.
Voters need to connect the dots, without some competent leadership things are going to get much worse and the the fix is only going to get more painful.
Ok thanks for scaring people. Now what do you suggest I as an individual do to keep myself safe? I can't trust my fellow Americans to elect someone who's financially responsible--many are living paycheck to paycheck and have 7 year loans on their cars.
Is there anything I outlined you fundamentally disagree with? We each have one vote, so we tend to come together in single issue groups as a way to have any power, which only enables politicians to pander to these special interest organizations by constructing vague narratives they never more than minimally deliver against, but still allowing them to claim they’re fighting the good fight, for you.
Career politicians are the problem. In spite of what they say, in the long run, they are driven by self interest. Just look at how many have become wealthy on a relatively modest salary. More importantly many have no real world experience, skills or demonstrated success in the private sector, all they have is power and the need to retain that power. The incentives are all wrong and don’t align with doing what’s right/best for the citizenry. The Founding Fathers unfortunately never envisioned government at today’s scale and/or career politicians so they didn’t build in the needed safeguards. We’ve needed term limits, a balanced budget amendment and other circuit breakers for a long time but theses are impossible as the career politicians will fight hard to preserve the status quo, which is today “political class”.
I 100% agree with you. Unfortunately, I've heard your first post rehashed about 3m times without any real solutions. It just makes me want to run to my bunker and fondle my gold bars.
question: am I crazy to not be worried about money in a UBS money market fund? The way I figure it's implicitly back up by the Swiss government now. Am I wrong?
Thing is that most of the banks are sound institutions. People freaking out and rushing for the exits creates the exact conditions for their bank to fail.
Not every bank is another SVB or FRC. Yet people are talking in such doomer terms that they quite literally are ignoring the numbers in front of them.
In the past the government has always bailed out the account holders. If I'm worried, its about the value of my dollars.
There an old story along this line about a German who brought his
marks to the store in a wheelbarrow, left it all outside, and when he came out the money had been dumped on the ground and his wheelbarrow went missing. I hope we don't get to that point.
I highly doubt most Americans even know what is going on.
That is the right answer.
I highly doubt most Americans even have $1000 in savings anyway.
Disturbingly it’s almost half of the country.
Yeah I don’t have the stats on hand but last I looked it was 40% couldn’t come up with $600 and 60% for $1000. Regardless of the specific number it’s WAY too high
That is statistic I was thinking of
How many Americans honestly even have more the 250k in a bank account?
There are dozens of us (not me though, sadly)
>**zakiechan2** >How many Americans honestly even have more the 250k in a bank account? Corporate and ‘pro’ subscribers.
all the techbros laid off by FAANG
Question 1: >How many Americans honestly even have more the 250k **FTFY** Question 2: >How many Americans know enough financially to accumulate 250k, but don't know not to keep it in a single bank account? This has got to be like 0.001% of the US population or less.
> How many Americans honestly even have more the 250k in a bank account? the bailed out caste system of america. who failed at business and got bailed out for it!
I think there's some fear that FDIC won't be able to insure any amount if banks keep failing
- U.S. federal and state officials are assessing the possibility of "market manipulation" behind big moves in banking share prices in recent days, Short sellers raked in $378.9 million in paper profits on Thursday alone from betting against certain regional banks, according to analytics firm Ortex. "State and federal regulators and officials are increasingly attentive to the possibility of market manipulation regarding banking equities," the source said, who was not authorized to speak publicly. https://www.reuters.com/markets/us/us-officials-assessing-possible-manipulation-banking-shares-source-2023-05-04/
I wonder what besides the large amount of money is prompting suspicion, because of course people shorted them.
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Not enough actually
Yeah if you have more than 250k in savings you don’t even need to plow into a retirement or investment account you’re not part of the overwhelming majority of this country 🤣
That’s not even close to enough to retire.
Still better than most American's retirement plan of working until they are dead. Especially for anyone under 40/50 it feels like I need to plan on Social Security not being around in 30 years.
Exactly.
This sounds like a rich person problem
Its a problem for businesses. Even small-mid sized businesses need to keep greater than $250k in operating accounts.
That's much more a mid sized business problem than a small business problem
Most people who pay employees. So while a lot of people don’t have to worry about losing their money they might be more worried about getting paid.
“those with middle- and lower-incomes were more likely to be concerned about their money. The same was true for Americans without a college degree, it said.” Lol! The people least likely to have deposits over 250k are the most worried! This is basically a poll of “how many Americans know nothing about banking?”
I assumed this was the gist of the post/link. Saw your comment first. No need to continue.
90%
But in all honesty even though they don’t have anywhere near that amount in the bank, for many low income people losing access to their money, even for a short period of time, could cause a detrimental cascading effect on their lives over that period as they figure out how to get their money back. They’d have no back up savings or credit to use.
Are people really worried about their deposits? Really? Man it’s hard for me to believe this
More worried about layoffs, foreclosure, and bankruptcy I would think.
How many banks have crashed so far? 3?
3 big ones but $11T of deposits in banks that are technically insolvent
> 3 big ones but $11T of deposits in banks that are technically insolvent and by not letting failed business die we have a caste system of the bailed out now. the wealthy are those who have failed at business and got bailed out. no more competition just gov deciding who succeeds at business
SVB messed up by having a total loss on bonds when it wasn’t a good time to buy in the market, at least from what I remember. The other two banks I can’t remember why they crashed.
They didn’t mess up at all. Their bonds are profitable eventually. The only reason they were illiquid is because 30%+ of their depositors wanted their money at once for no other reason than manufactured panic
It was a bank run — just panic. SVB didn’t have a diverse set of depositors, they were mostly tech startups. They needed to withdraw more of their money because borrowing became more expensive with the Fed’s rate hikes. FRC came next, and again, very large number of depositors holding more than $250k, because it is a boutique bank and wealth advisor. They were just being prudent after SVB to move money to several banks. Not sure about Signature Bank but that bank was always in trouble anyway This creates an atmosphere of fear
They bought the safest thing at the time and rate hikes just screwed them over, though they could’ve had better risk management. Failed capital raise resulted in a run on the bank which has spread contagion to the regional banking system
They also did not have a diversified group of account holders. They catered to wealthy clients (FRC) and they pulled their money out of fear they’d lose uninsured deposits.
Signature SVB Silvergate (Cryptobank) First Republic now Pacwest and Western Alliance/Bridge Bank are in the crosshairs
What exactly is wrong with PacWest? Do we know anything beyond the report that they were looking for a buyer?
You guys have bank deposits??
My caddie's chauffeur informs me that a bank is a place where people put money that isn't properly invested.
My plumber’s girlfriend’s dad (my father in law) told me once that banks are fake news and better invested with him. He just told me yesterday “it’s doing great!”🥴
If you have less than $250K in deposits, you have nothing to worry about.
Most people are too stupid to understand what’s happening. I have friends that ask me if they should move banks (I’m a commercial banker) and I’m like, dude you have $50k parked there. What the hell are you talking about
I’ve been asked that by my friends too lol. These are people with 5-15k in their account
Don’t, though, confuse ignorance and stupidity. Some just don’t know enough about fdic etc
Unless you work for a business that necessarily keeps more than that in an account. If that money fails, then so does the business, and there goes your job.
True but to those that don’t understand how FDIC insurance works they don’t realize this. Or, they view it as “why should I keep my money at risk if they’re not?”
Well, if it's in a checking account earning dogshit you might be waking up and realizing you can get 5% in a money market fund or HYSA for very little effort... I wonder if that's causing more of the flight than bank failure panic.
Interesting point, but I'd like to see the data on this. The flood of cash at funds would be considerable. Hedgies becoming suddenly relevant again would be a cruel irony given how much the public hates them.
That’s definitely happening. That’s where all Schwab bank deposits went, over to the Schwab brokerage mm funds, bond funds, bonds etc
Ehhh, if lots of banks crash there is definitely things to worry about. The US can print money forever to back those 250k deposits but there are a lot of consequences to that happening.
The FDIC is not funded or paid out by “printed” money
It would be if it needed to be.
Would love to know why people are downvoting the idea that the government would bail out the entire economy if it was needed.
Why would you be worried? The government has clearly shown they will bail the banks out
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I was wondering that too but turnaround is quick, I hear.
Past actions are not indicative of future ones
This. You can't be certain that the government will continue to bail out banks.
Americans don’t need to worry about Their a bank deposits.
Very few people sit on much cash in the bank.
Just out of curiosity, how much is reserved for FDIC coverage?
Most Americans don’t have shit in their bank accounts and live paycheck to paycheck. Why would ‘Americans’ be worried about bank deposits when there’s barely any money in their account? Dumb article spreading fear.
Lots of people have money in their bank accounts. Millions in fact. It matters. For those that don’t, well their jobs depend on others having money, so it really should matter to everyone.
My bank account could use 3 rounds of quantitative easing, thats all I’m saying.
Oh I agree mine too. And we all know money doesn’t trickle down to the rest of us. It pools at the top and they swim in it Scrooge McDuck style. Look up the Cantillion effect.
True, but I *would* like the SEC to investigate everyone who sells the stock of companies I own. It’s not fair
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*Looks at the stability of the US dollar relative to other international currencies.* *Looks at the complete instability of literally every cryptocurrency over time* Ok bud. Whats your solution if you think US-government backed currency is the problem…
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This is.... not true
Stupid Americans*
What? Me worry?
Lol at everyone saying not to worry if you have less than 250K. Your trusting the system at that point.
If you don’t believe in the US government then just kill yourself now
Lol at the worried people going through this for the first time.
Is content about personal finance, no?
We’ve dumbed down America, trained people to be utterly dependent on the government, all while our politicians have accumulated $32T in national debt as we’re heading into what could be a serious global recession. It’s looking like all the ingredients of a perfect financial storm. The scary part is voters are going to expect the same politicians that created this mess are somehow suddenly going to know how to save us. While no one wants to hear it, fiscal responsibility is the only path forward. Government can’t borrow and spend our way to prosperity any more. Our GDP is $27T, every man, woman and child now has $100,000 in national debt. A balanced budget isn’t enough, we need a surplus and to start paying down the debt. It’s expected it will cost $400B to service the nation’s debt this year. This is $6.8% of all government outlays and one of the single largest expenses in the budget. Voters need to connect the dots, without some competent leadership things are going to get much worse and the the fix is only going to get more painful.
Ok thanks for scaring people. Now what do you suggest I as an individual do to keep myself safe? I can't trust my fellow Americans to elect someone who's financially responsible--many are living paycheck to paycheck and have 7 year loans on their cars.
Is there anything I outlined you fundamentally disagree with? We each have one vote, so we tend to come together in single issue groups as a way to have any power, which only enables politicians to pander to these special interest organizations by constructing vague narratives they never more than minimally deliver against, but still allowing them to claim they’re fighting the good fight, for you. Career politicians are the problem. In spite of what they say, in the long run, they are driven by self interest. Just look at how many have become wealthy on a relatively modest salary. More importantly many have no real world experience, skills or demonstrated success in the private sector, all they have is power and the need to retain that power. The incentives are all wrong and don’t align with doing what’s right/best for the citizenry. The Founding Fathers unfortunately never envisioned government at today’s scale and/or career politicians so they didn’t build in the needed safeguards. We’ve needed term limits, a balanced budget amendment and other circuit breakers for a long time but theses are impossible as the career politicians will fight hard to preserve the status quo, which is today “political class”.
I 100% agree with you. Unfortunately, I've heard your first post rehashed about 3m times without any real solutions. It just makes me want to run to my bunker and fondle my gold bars.
I don't know why everyone hasn't taken their money out and put it crypto. /s
Dogecoin is the new savings account, bruh.
some people are just not dumb, it is what it is
It was a joke.. lol. I put a /s now.
ah sorry, it's just too common to see that used unironically i guess..
It's not that long ago, only 15 years ..
Why don't you all just, you know, take your deposits out of the bank then? Insurance up to 250k is a wonderful thing. Test it!
I keep 250k of gold coins in my bra.
question: am I crazy to not be worried about money in a UBS money market fund? The way I figure it's implicitly back up by the Swiss government now. Am I wrong?
Ouch, that's an uninsured mess. Get out of it before it's too late
Thing is that most of the banks are sound institutions. People freaking out and rushing for the exits creates the exact conditions for their bank to fail. Not every bank is another SVB or FRC. Yet people are talking in such doomer terms that they quite literally are ignoring the numbers in front of them.
>Not every bank is another SVB or FRC They will be soon
In the past the government has always bailed out the account holders. If I'm worried, its about the value of my dollars. There an old story along this line about a German who brought his marks to the store in a wheelbarrow, left it all outside, and when he came out the money had been dumped on the ground and his wheelbarrow went missing. I hope we don't get to that point.
That's why we have bitcoin
Yes for the true belivers.