Jump to content

Sign in to follow this  
nosup4u

Would the banks survive if everyone on the planet

Recommended Posts

Maxed out all their credit / and credit cards in 1 day just a thought of how the economy would react as i honestly don't know the answer

Share this post


Link to post
Share on other sites

Yes, banks would survive. The only real problem that banks have is when everyone goes and pulls their funds out. Many banks have long loans out (car loans, mortgages), and cannot readily raise enough cash to contend with a bank run.

Share this post


Link to post
Share on other sites

Yes, banks would survive. The only real problem that banks have is when everyone goes and pulls their funds out. Many banks have long loans out (car loans, mortgages), and cannot readily raise enough cash to contend with a bank run.

Not a problem. Banks get all they need from the Fed which specifically is there to provide cash when banks see more withdrawn that they have cash on hand. Banks get shut down for balance sheet problems, not liquidity problems.

Share this post


Link to post
Share on other sites

 

The bank failed because of the balance sheet which was riven with junk debt. So they couldn't get cash from the Fed. The run came after this announcement and the FDIC stepped in. They had the cash.

 

On Sept. 11, Moody’s issued its rating: It downgraded WaMu’s debt to junk status,

 

The Fed doesn't bail out impaired banks. The FDIC liquidates them..

Share this post


Link to post
Share on other sites

Well, Washington Mutual was a stupid bank anyway. They offered the special overdraft protection in which you could write a check for more than you had, and pay it back later? I called customer service years ago and asked how much time I would have to pay it back. I was told 30 days. Some 28 days after I overdrafted my account, I showed up with the money to bring it current, but I was told that the account had already been charged off and sent to the Chex system. WaMu refused to take my money.

 

What kind of an salamander has someone show up with cash for a debt and refuses to take it? I'm glad WaMu failed, but remember that the primary reason WaMu failed was because many businesses that banked with WaMu and had accounts with balances greater than $100k decided to move because FDIC only covered $100k. Now, I believe that FDIC covers up to $250k

Share this post


Link to post
Share on other sites

No matter what "mischief" people might do, banks and government would meet in secret to undo it.

 

You're basically asking whether unarmed people could destabilize a well-armed government. And while that is a possibility, as a practical matter the government has a lot of leverage in far too many areas of everyday life.

Share this post


Link to post
Share on other sites

Maxed out all their credit / and credit cards in 1 day just a thought of how the economy would react as i honestly don't know the answer

 

Yes, the banks would be fine. Banks would profit over the interest fees. The economy and stores would benefit from increased product sales/profits. Stores would hire more people. But, it’s obviously not going to happen, so that’s like asking “what if a unicorn goes and puts cotton candy all over every building in the world in one day?” Not. Gonna. Happen. :D

 

There’s literally nothing that everyone on the planet would do in 1 day. Or 1 year. Ever.

 

Everyone going to pull CASH out of banks the same day would harm the economy... but obviously not everyone is going to do that. Few will in a developed nation. If we’re talking in Venezuela or a “seashell” country, there’s thousands of things that can throw the entire economy and the entire country into turmoil regardless.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Today's Birthdays

    No users celebrating today.
  • Member Statistics

    • Total Members
      177,734
    • Most Online
      1,528

    Newest Member
    Tt33
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines