What the heck is going on?
3-banks are down with more to come. By the time you get this, there's a good chance you'll hear about some European banks who are on verge of collapse (hint, hint). Yes, this is bad (in spite of what They are "assuring" you). Don't freak out! Keep reading, you can stay ahead of this. Even though they're telling you, "don't worry"...When anyone at the top tells you "don't worry," WORRY!
In short, this is all happening because the federal reserve continues to raise interest rates, print more money and inflate our currency (dilute its buying power). Bank's previous bond investments are now a losing bet and they're upside down, which means the costs of running their business outweighs the money coming in.
The government is stepping in to give them a free ride on their bad-choices (boy wouldn't it be nice if we all got the same get-out-of-jail-free-card too!). Anyone who tells you that we won't be paying for it, is lying! We will 100% pay for it with higher banking fees and more money printing (which dilutes our buying power even more).
So, what do we do with all this bad stuff going on?
Here's my best tips for you: (see disclaimer above)
TIP #1: If someone at the top is telling you not to worry >
WORRY!
In an effort to keep this newsletter a newsletter and not a book, I'll keep this simple...Take any announcements by leaders as foreshadowing of a problem already underway and act accordingly. Act as if it's going to happen - "Be Prepared, Not Scared."
TIP #2: Get your money out!
Banks in the
USA carry FDIC insurance up to $250,000 USD for each creditor (yup, that's YOU). YOU are lending the bank money to invest (WTH?). Canadians, you're not out of the woods...Your CDIC insures you for only up to $100,000 CDN.
If you've got
more than those amounts in any 1-bank, get every dollar over that out > NOW! Diversify it into a credit union (which isn't a bank, by the way).
Bonus Tip for very high net worth people: Invest surplus (short-term) in United States Treasury Bills. Those are by far the safest
investment backed by the US government. Sure, you're not going to get rich on the interest, but you won't lose your capital either because of other bad things banks do like "bail-ins" if things get really bad. (Note: in the short term you're fine, long term you will lose, once again because of inflationary melting of our dollar, so consider this a preservation play only).
TIP #3: Have an emergency fund at home.
You've heard it before, but now's a good time to do it. Pull some money out as cash (paper money), and
keep it within arms reach to cover emergencies like buying food and supplies in the (unlikely?) event of a bank run and banks close their doors.
I'd also recommend you have some physical gold/silver as well (that's for another
newsletter).
And, after you do this, it might be a good time to get yourself a cute boerboel like "Pickles" to give would-be intruders a second thought.
