muses of the moment

January 30, 2014

Latest Blog Post from Martin Armstrong dated January 27, 2014

Filed under: Bank bailout, Safe banks, The Banking Crisis, The Financial Crisis — Tags: — totallygroovygirlfriday @ 9:52 am

Click here for Martin Armstrong’s latest blog post entitled Is It Your Money? Are You Sure? dated January 27, 2014.

This post is not about cash bank runs, but just moving your money to another bank(s). Groovygirl has talked about this before. Another bank crisis will happen. Martin suggests after 2015. And you may lose our money or not have access to it for a period of time (which is the same thing). Money you can not get when you want it is not yours.

The next global banking crisis will be a bail-in. And it will not be announced ahead of time.

Groovygirl has always shared what she had done to help with buffer yourself in this situation. Spread your money over 3 or so banks. If you need an international bank for trading or business, fine, but don’t put everything in one place in one country. Maybe one local bank, one regional, and one national/international, depending on the amount of savings you have.

As a result of MF Global, she also suggests dividing your trading money between 1-2 brokerage houses (ones that don’t clear at the same place) and do not leave money you are not using for trading in those accounts! Trading accounts are for trading money. gg knows this is a pain, but do you want to help protect your money or not? This doesn’t eliminate loses, but it helps protect you, since you must use the banking/brokerage system for business and investing. Some MF Global clients lost access to their money for 3 months to one year. And had to spend money on lawyers to get it all back.

Click here for an article about HSBC dumping small account customer. We saw this is 2008-2010. Banks also called in loans and credit lines. This seems to just be smaller bank accounts.

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