Thursday, April 7, 2011

Counter opinion

In response to my observations on banks, a reader posted an interesting counter-opinion. I wanted to post this separately so it wouldn't get buried.

I think it's irresponsible to suggest that someone pull their money out of a bank if your deposits are below the FDIC insured amount. Pulling your money out can send the bank into a tailspin and insure its failure. You don't lose any money if your deposits are below the insured amount.

Local banks support local communities and should have your support. BoA, Citi and the larger banks aren't really involved in the local community and shouldn't be your first choice *if* you want to support your local community.

I do not agree with all of the jumping up and down and scaremongering that Rawles and others push... this type of unfounded, baseless fear should be ignored. Take a look at the links that are posted on SurvivalBlog - are they from trusted, reliable sites like the Wall Street Journal or some less reputable source? Think about it... why is he peddling so much fear? I am not buying it.

Again, I would urge everyone to be strong and get involved in local communities to make them stronger. Get involved in the election process by supporting candidates you support to get this country back on track, living in fear is not the way I choose to live. I have chosen to be prepared but fear is NOT part of my equation, I am an American.


  1. How mainstream! Do nothing to protect yourself, everything will be all right. Deposits are covered by FDIC, all is well. Wall Street Journal, a trusted, reputable source?

    This clearly is an appeal to keep as many heads in the sand as possible. The more people that do so, the more plunder can be gained. FDIC is BROKE. Wall Street Journal is a trusted, reputable source for WHAT information? The issues we all face are well documented online, yet most ignore them to their peril.

    No! Each of us has a responsibility to our own family and self. Hope is not a productive strategy for survival and success. We are living through the collapse of the greatest mania in the history of the world.

    What offers the greatest probability of survival? Look closely at a homestead such as Patrice has. There is food, fuel, a roof over their head, and much more.

    And best of all, what has been lost if we are all wrong and the economy springs back? What may be lost if we are correct and the economy collapses? Think about it.

    Winston Bearkiller

  2. He’s right, we shouldn’t live in fear. However we should live life with our eyes wide open. Yes it is true, that if your bank deposits are below the FDIC insured amount you won’t lose any money. However what you could lose is access to that money in a timely manner. Most of the time when a bank is closed, the FDIC is able to have another bank who has stepped in and bought the failing bank and business pretty much goes on as usual. However in the event that there is not a buyer, the bank depositor does not have instant access to their money. And it doesn’t take a bank failure to keep you from gaining access to your money, just look at what happened in Japan recently with their earthquake and tsunami. Several banks in Japan limited what people could withdraw during that time of crisis.
    And true local banks have made our communities strong in the past. The problems is, is that several local banks have been just as negligent as the big banks in whom they loan money to. The result is that many local banks are at risk. As a consumer of a bank I need to decide what is in the best interest of my family and whether my local bank is the best place for me to preserve the wealth I have earned. With the little that banks pay in interest rates I’ve become less inclined to utilize banks other than a transfer agent to pay my bills with. In the past few years I’ve made more money by investing in precious metals, although my intent was to preserve my wealth. I also invested in a well stocked pantry which has served my family well in light of my being unemployed for the past 4 months.
    Regarding James Rawles’ blog. He is not a fear monger. Rather he provides a blog which makes people aware of how to care for themselves and their loved ones in case we have a TEOTWAKI type event (It’s up to you to determine which event you wish to prepare for). One could summarize Rawles blog down to the Boy Scout Motto, “Be prepared.”
    And yes there are blogs out there that shouldn’t be trusted, but what makes you think that main stream journalist are any more reliable? Every news organization has an agenda. They also have to make money to stay afloat. So they have to make sure they please their corporate advertisers. I’ve read both zerohedge and the Wall Street Journal for years. And zerohedge, which the article on the 1,000 banks at risk was originally posted on, has broken more stories that cut through the corporate fluff (Mind you the blog is not for the faint of heart, especially the comments section). But I continue to read both of those blogs, and websites, as well as many more on a regular basis. It’s in a sites track record of accuracy that one determines the trustworthiness of the sources.
    All in all, we need to approach our consumption of news the same way we eat fish. Swallow the meat and spit out the bones.

  3. I think I would agree that nothing should be done based on fear. The number one thing standing between me and the next right thing to do, is fear.

    There is a great deal of talk about Progressives proposing a mortgage strike in May and Chase Bank is specifically named. Last January, Obama named Chase Bank executive Bill Daley as Chief Of Staff. This pair of events together seems very odd to me. I'm wondering if another element of Obama's chaos plan is to cause a run on small banks in order to eliminate them. In that case, any government report regarding the solvency of small banks is not to be trusted and taking your money out of a small bank, and contributing to a run on that bank, would be playing into the chaos plan.

    If I could, I think I would still invest in the most adorable little Jersey heifer ever instead of keeping my money in the bank, but it is important today not to be driven by fear.

  4. The FDIC will not be able to cover all losses and as a result will either forfeit paying them or the Fed will print more money. In either instance, what you have will be zilch or worth zilch.

    I do agree with supporting your local bank, but do not keep more in it than you are willing to lose and DO keep a good amount of cash at home. Doing so will keep your family safe if there is a run on banks in your area. You can be grabbing last minute supplies at the stores while the majority of people are pounding at the doors of the bank!

  5. I think your commenter is missing the point. We've reduced our liquidity, not out of fear that the banks will fail, but out of recognition of the FACT that our purchasing power is diminishing with each passing day.

    There's nothing the FDIC can do about that.

  6. The author said, "Pulling your money out can send the bank into a tailspin and insure its failure". Hmmm, it seems that the author is admitting that the banks may be in danger. Face it, if a few homesteading types start pulling their money out, not much damage can be done...unless the banks are already in trouble. FDIC? Sure they might be able to handle a few banks going down, but what about a nation wide run on all the banks? If that happens the situation with the American dollar will be dire and your dimes will be dead.

    And what's this talk of responsibility and irresponsibility? No individual citizen has any responsibility to any bank. The irresponsible thing is to save up a pile of cash and put your faith in the banks and the gobermet.

  7. I found the person's counter-reply arrogant. People who prepare do not necessarily all live in fear. Many are simply following God's word and principles. It is wise to be prudent, to watch, to observe the signs, and to not enter into blind trust.

    In addition, the stars around the "*if* you want to support your local community," indicates an elitist attitude, as if those who choose to not trust the banks and the interconnected banking system are somehow inferior to the author of the note.

    Many of the posts on Survivalblog are from very well known and reliable sources. To dismiss Rawles, himself, as a fearmonger is ridiculous. IF the person stating this had read ANY of the articles with objectivity they would have been able to discern that things are not good and looking worse by the day. James Rawles didn't create the problem, he and other Patriots, such as the author of this blog, Patrice Lewis, are simply stating the obvious.

    The last few words really caught my attention: I am an American. Well, that made my blood boil as it implied, in a very arrogant way, that because others are preparing and being wise about the times they aren't Americans. I have eight ancestors that served in the Revolutionary War and my husband has four. That's twelve ancestors that risked their lives for the freedoms we experience in this country and I can, without reservation, state I am completely disgusted with the way this country is going and the freedoms being taken away.

    Finally, I agree with several others who replied: The person who counter replied and disagreed has missed the point. The Government is broke, so don't count on getting 100 pennies for your dollar you have sitting in the bank; it's not worth that today anyway.

  8. This writer says local banks support local communities and should have our support, while the large banks aren't really involved in the local community and shouldn't be our first choice. That's not true. Large banks support local communities everywhere. At the same time they're doing their best to put the "little guys" out of business, and it's working!

    This person thinks the "jumping up and down and scaremongering" being pushed by Rawles and others should be ignored? This tells us exactly where this person is coming from. He/she actually sounds very much like Obama, who wants us all to believe everything is just peachy-keen and he has it all under control. We should trust him and his czars completely and all will be well and good. Just sit back, relax and don't worry. Everything will be just fine.

    "Get involved in the election process by supporting candidates you support to get this country back on track"? Oh, that's right, elections! We almost forgot about those. Hmmm... I wonder how many organizations like ACORN in our next election will be signing up voters 8, 10 or 20 times? How many dead people, illegal immigrants and criminals will be voting Democrat? Yesiree, our elections will save us. Especially now that liberals pretty much control both major parties!

    And what's this about "living in fear"??? Who's doing that? Because we're using our heads and planning for the worst, it's assumed we're living in fear? Anyone who reads Patrice's blog and column regularly knows she and her readers for the most part are simply planning for the worst of times, and we're doing so calmly and sensibly. "Fear" has nothing to do with it. So, this writer says he/she is an American? That's good. That's very good. Now, ACT like a true, patriotic American and stop trying to push your liberal-progressive agenda down our throats and maybe we'll believe you!

  9. Fear? I find I have less fear the more prepared I am....

  10. There is no place on the Survivalblog site for the editorial spin of the likes of the WSJ.
    Wall Street is corrupt. The dollar we tender is hardly worth 30 cents and shrinking as we debate.
    If those two facts alone allow you to have good faith in the current banking system whether it is local, or state or Federal, it is the entire
    system that has corruptly ruined and contributed to our present economical demise, then you do not
    understand and accept the reality of facts.

    WE THE PEOPLE are paying with our hard earned copper pennies for their greed and success.

    There is NO fear factor in logic applied based on facts. So, if you have No fear, and obviously are not using logic, What are you basing the need to be prepared for? You state to take a stand. What you are standing for is obviously not the same issues that I am standing for.

    So, Fearless, take your cognitive dissidence and
    better your community with the information from

    God help you see reality.


  11. This person is an IDIOT!!! The whole point of the excise is to NOT end up with a fist full of worthless paper, but to preserve what is left of the value of your holdings.

  12. We have been betrayed. Oh, I guess that sounds past tence. We are BEING betrayed right now. This is too big to be a conspiricy. This is spiritual unseen warfare. Fallen angels don't care much for human beings. They are only good for entertainment purposes. The heart of man is desperately wicked. I think you all know where the safe haven is.

  13. this person is an idiot for sure who has not bothered to educate her/himself regarding banking industry, fdic, and current events or history. all of these combined go hand in hand as part of being prepared in all ways for good things as well as the bad. it is not a "bad" thing to keep a little bit of $ in the bank..afterall, ya gotta have an account to cash a check these days...but it is really stupid to not have a good amount of cash at the ready and the right kinda cash as well. the government (and fdic is part of the govt.) is fixing to go "belly up"..and i for one do not care to have my hardearned, and hard saved money tied up anywhere.

  14. The Wall Street Journal is NOT to be trusted. I subscribed for nearly 25 years and recently gave up on what I once considered to be the last real newspaper in America. It went into a tailspin about 2003 or 2004. Jennifer

  15. While I agree with the writer that we are not to operate in fear, we ARE to be wise and aware about our circumstances. I don't think this man has any sense of financial realities at all because he is thinking that the FDIC of a bankrupt government is going to make everything just A-ok for bank customers. He obviously does not understand that out-of-control inflation, an inevitabilty at this point, makes those dollars he is so trying to protect in the bank pretty much worthless. A bank used to be the place to keep dollar assets, however, those dollar assets are no longer assets. They are just paper and so while they are still worth something, putting them into more tangible assets is a wise, not fearful, thing to do!!

  16. Fear sells print and product. How many people have read something like "Patriots", panicked, and ran out and bought a 1 year supply of freeze dried food? However, it's up to the smart people to derive the truth that is somewhere between the fear-mongering of say Alex Jones, and the rainbows and unicorns of the corporate media, say, WSJ. No one is giving us the whole truth, everyone is trying to sell us something. It's up to Americans to re-learn how to do something we did well a few generations ago, but forgot: critical thinking.

  17. A couple of comments:

    I just finished reading James Wesley Rawles' "How to Survive the End of the World As We know It."

    One thing about the book that is pertinent to this topic is how often Mr. Rawles states that one of the purposes of preparation is to have enough on hand to help those who are less fortunate and who will suffer more during TEOTWAWKI.

    He absolutely decries the "hording" mentality. There is no hint whatsoever in his writing that he recommends one should operate out of fear, hole up in some cave somewhere, or hoard food against the pleadings of starving people.

    Quite the opposite. His recommendations are calm, altruistic and common sense. Anyone who accuses otherwise simply has not read this book, or is so leftist-blinded that he cannot see the truth.

    'Course, I can see how that might be offensive to leftists whose altruistic feelings don't extend beyond picking other peoples' pockets to "give to the poor."

    Now, about TEOTWAWKI. Kiddos, we are already there!

    Agreed, nothing like the movie "2012" has happened. But, things have clearly changed for the worst for the world as we once knew it. Patrice very succinctly nailed it when she said this nation's financial meltdown is beyond redemption.

    My wife and I are reminded of the preparations we made for the expected Y2k meltdown. OK, because of the hard work of many Y2k remedial experts, like myself, it wasn't as bad as some of the more excitable pundits told us it would be.

    But, we learned a lot about preparation during that episode; preparations that stood us in good stead when I lost my job in March 2000 as the Y2k remediation coordinator for the corporation that I worked for. I did my job too well, our company didn't melt down, so hey who needed the Y2k guy in the first place? That's how corporations think.

    As an aside, most people probably don't realize how many systems went down permanently because of Y2k. They weren't exactly bragging about it in the news. I had a friend who was the Y2k remediater for a large school district in our city. He told me that their system-wide mainframe just flat out quit, and they never got it back up again. That little bit of news didn't make the newspaper. But, there were plenty of stories about how "nothing happened during Y2k."

    My point is that we could be on the verge of TEOTWAWKI and we wouldn't know it if we were depending on the government and their lapdog media to tell us.

    So, preparation is important. In fact, you are criminally negligent if you are the head of a family and you don't do whatever it takes to support, nurture and protect your family during any and all crises.


  18. I think the guy has something of a point, but I think he applied it to the wrong person. From reading your blog entries, I get the feeling that you are not a person to head for the hills, batten down, and hide away.

    I took his point to be that this type, who isolate themselves completely with their storehouse, aren't doing anything to improve the pretty sad situation we've found ourselves in lately.

    Seems to me that you actually ARE participating in community and doing a part to make your village a bit more like a village and a bit less like a bunch of individuals who just happen to live within the same few square miles.

    Edit -
    I just read Dave's comment of April 8, and this sort of ties in with what I mean. We had a Y2K "prevention team" at work. Y2K was pretty mild exactly BECAUSE of the work of a whole pile of people.
    It took a lot of work to find and fix all of the millions of systems out there that would have failed.
    Good results don't just happen, good results take a lot of work. Villagers making their village better are exactly the sort of people who can turn a potential catastrophe into something only mildly unpleasant.

    I hope the original poster meant something like this in his last paragraph where he says :
    " Again, I would urge everyone to be strong and get involved in local communities to make them stronger. Get involved in the election process by supporting candidates you support to get this country back on track, ".