A couple weeks ago I wrote a WorldNetDaily article called Tangible Investments in which I stated how we prefer to put any surplus cash into physical possessions rather than in the bank. I later learned this column had the highest readership of any WND column I'd ever written. It even got mentioned on SurvivalBlog, which I'm certain accounted for a lot of those numbers.
It seemed the column hit a chord. A lot of people -- not just us -- apparently have little faith in money and would rather put their earnings into something tangible (a Jersey heifer in our case) rather than stash it in the bank.
And now I find out that one of our banks is teetering on the edge of disaster. This article lists 171 banks "for which the margin of failure is one thousand dollars." One of those banks is ours.
"Below we present the 171 banks that had to access the Discount Window for the paltry sum of $1,000.00," states the article. "That's right -- these are the banks for whom the margin of failure is as low as one thousand dollars. Any readers who have cash deposited with these banks (many of whom have not yet been visited by the FDIC's Failure Friday phenomenon), are urged to immediately remove all funds and run, Forrest, run."
We've known for quite awhile that two of our three banks are in fragile shape, but I hadn't realized just how fragile that shape was. It confirms our notion that banks are not the place to put our money (except for what we need to pay business and household expenses). The rare times we have surplus cash, we're putting it into something tangible.
Yeah yeah, someone is doubtless asking about the FDIC. Our money is covered -- insured -- by the (cough) full faith and credit of the United States government. Right?
Right. Do you honestly think our measly account would be covered by a bankrupt FDIC if our bank should fail? Of course not. Or if it is, the paperwork would tie it up for so long that we might as well kiss any funds goodbye.
We won't be closing our account with this bank. It's local and convenient. But nor will we keep any but the barest of funds in it. Our economic situation is such that we can't afford to lose anything because a bank fails.