Thread,
I already moved my money out of Bank of America several months ago, because I found out they are really insolvent, despite the "Mark to Fantasy" engaged in on their Financial Statements which is their pretense at solvency. If their loan book was marked to market, their bank would have a negative $80B book value. I know that our government is stealing from us to recapitalize these banks, but when the evidence is that these banks are still insolvent despite the massive recapitalization attempts, it's time to take precautions to preserve my own capital. The most recent evidence of their insolvency is when they moved $53 TRILLION notional value of derivatives over to the subdivision that holds depositor cash in order to stick the risk with tax payers, because the depositor division is insured by the FDIC. That type of thing only happens when a bank believes the probability is high that the risks they've taken may end badly. This is a premeditated restructuring action taken in anticipation of a potential bankruptcy event. All of you who currently bank with Bank of America and any of the other large Too Big Too Fails are doing so at your own risk, after repeated warnings that these banks are insolvent. The only reason they aren't in bankruptcy today is the massive bailouts and 0% interest loans they are receiving at tax payer expense and the belief by this Congress and this White House that bailing out criminals is a superior way to run our economy, instead of seizing those banks, forcing a restructuring to wipe out the shareholders and give the bondholders a haircut, and thus, wipe out the risk to the tax payer. Instead, by bailing these banks out, they throw good money after bad at tax payer expense and let the criminals continue with their criminal activities with full collusion from our government.
I now bank with a local credit union, which has a verified (by me) loan portfolio consisting almost entirely of loans to upper middle class, verified employed home owners and business owners in my community. My credit union doesn't have derivatives on its books and doesn't have a trading desk that takes big risks with depositor's cash. They have self-imposed Glass Steagal restrictions, even though Glass Steagal is no longer a law in this country. In short, I feel that my money is safe. Considering I keep a 6 month cash emergency reserve, where I put that cash is important to me. Bank of America lost my trust, because of their criminal activities and their ongoing collusion to steal tax payer money to recapitalize themselves. Looks like I'm not alone in my thinking...
No Surprise: Distrust Leads to Money Moving
 
By Michael Panzner - October 26th, 2011, 8:00PM
When you’ve got this –
“Only 23% Trust U.S. Financial System: Poll” (MarketWatch)
Americans are more distrustful of their financial institutions, according to a new poll that shows only 23% of those surveyed said they trust the country’s financial systems, down from 25% in June. The figures are from the quarterly Chicago Booth/Kellogg School Financial Trust Index, which measures trust in four areas: banks, the stock market, mutual funds and large corporations. “The findings in this issue reflect what’s been reported in the news and demonstrate the fragility of trust many Americans still have in the institutions where they invest their money,” said Luigi Zingales, a finance professor at the University of Chicago Booth School of Business and co-author of the index. –
this –
“Demand for Cash Shows No Signs of Fading” (Real Time Economics)
Cash may no longer be king, but it’s looking like good old paper money has a solid future in front of it, a study from the Federal Reserve Bank of San Francisco argues.
The report, released Monday and written by Jeremy Gerst and Daniel Wilson, argues that the proliferation of electronic payment methods isn’t dislodging a continuing strong interest in cash. You may be able to pay for coffee with a credit card these days, but even so, paper money will be sticking around much as it always has for years to come.
“Demand for U.S. currency — cold, hard cash — shows no sign of fading,” the analysts wrote. “Alternative payment technologies have tended to keep cash growth in check, but other factors have more than offset this. Over the next 10 years, cash volume is projected to grow 1.7% per year,” they noted. –
and this –
“Credit Unions Seeing Surge In New Accounts” (Consumerist)
As you may have heard, more than a few people around the country have been out and about in recent weeks in protest of — well, in protest of a lot of things. But what many of these people (and many of us who are sitting in our homes) share in common is that they’re fed up with the super-sized banks and are looking for alternatives. This appears to have led a growing number of people to the front door of their local credit unions.
The Navy Federal Credit Union, the world’s largest credit union with $46 billion in assets and 3.8 million members, tells ABC News it’s seen a threefold spike in new checking accounts since this time last year.
The chief executive officer of the Chicago Patrolmen’s Federal Credit Union, is seeing similar growth: “In October, we’re on pace to go about 40 percent above that in new checking account and debit card activity.”
“In our experience, this is new,” Karen Tyson, the National Association of Federal Credit Unions’ senior vice president for marketing and communications, told ABC News. “This is a different phenomenon. There seems to be quite a bit of distrust, quite a bit of apprehension, quite a bit of frustration among the average Americans out there with the larger institutions and the Wall Street institutions.” –
don’t seem surprising at all. |
