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So I have a kind strange question.. with everything going on with the economy these days, how secure do you think banks are? We have just sold our house to get out of the housing market for a while and do some travelling in our 5th wheel before we buy back in. I have this strange sense that the bank may not be a good place to keep our equity we made off our house.. My husband thinks we should bury it somewhere but I am not to sure about that one either. I guess I just wonder if other people think about this too.
 

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We have the CDIC that protects funds of 100k. So if you have more than that I would spread the cash around. Our situation is very different from the US. We have basically 5 main banks and the likelihood of them failing at this time is small. (Not talking about small trust companies or credit unions etc).The Canadian gov would have to step in and/or if that were the case we would probably be in a situation where money was not worth the paper it is printed on.

Actually now is the time that many are talking about the fact that it is a good time to invest in the big 5 banks since prices are down.
 

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If you are with one of the big 5 you are fine. If you are worried keep a max of 100,000 per bank but our banks are much more regulated than the US ones. Only 2 of the big 5 had any sub-prime market in the US and both have already taken the writedown for them.
 

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I know next to nothing about the Canadian banking system but I will say this generally:

-Unless earning interest over time, your money will not keep up with inflation.

-The risks of leaving cash buried are great- water, rot, animals finding it and destroying it, not being able to find it again, land being sold or built on (if the land is not yours)...not wise. Just don't do it.
 

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Discussion Starter · #7 ·
Thanks for the replies!
Ya I was never big on burying it that was my husbands how about suggestion that got nixed right away

So the big 5 in Canada, Royal is one of them right??
 

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just a note: If the CDIC or the FDIC (depending on if you are in Canada or the US) were to fail... meaning the banks failed and the deposit insurer could not refund your money (up to 100k) then that would mean the government is so screwed that even if you had 100k cash in a mattress... that cash wouldn't be worth anything either.

In today's world, if a bank fails to the point where people perminantly lose their insured deposits, that means the government (and therefore its currency) is no longer valid.
 

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Quote:

Originally Posted by ShaggyDaddy View Post
just a note: If the CDIC or the FDIC (depending on if you are in Canada or the US) were to fail... meaning the banks failed and the deposit insurer could not refund your money (up to 100k) then that would mean the government is so screwed that even if you had 100k cash in a mattress... that cash wouldn't be worth anything either.

In today's world, if a bank fails to the point where people perminantly lose their insured deposits, that means the government (and therefore its currency) is no longer valid.
So what currencies would be valid even in that scenario? Land? Gold?

OP, When it comes to losing money, in my eyes I'd be more worried about losing *cash* from theft, fire, etc, than from bank failure. Not that the banks or government can't fail, but it's just more likely to lose that coffee can filled with cash or that 10K in the freezer.
 

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Quote:

Originally Posted by WeasleyMum View Post
So what currencies would be valid even in that scenario? Land? Gold?

OP, When it comes to losing money, in my eyes I'd be more worried about losing *cash* from theft, fire, etc, than from bank failure. Not that the banks or government can't fail, but it's just more likely to lose that coffee can filled with cash or that 10K in the freezer.
The number one currency in my opinion is skills, number 2 is tools, a semi-distant number 3 is food storage. These 3 are super valuable in day to day life even if there is no disaster/collapse. The more you can do for yourself/by yourself before a disaster, the more you can do after the disaster.

Land would be great, but the truth is there is a lot of land out there, and land is not portable... not like skills and tools. Imagine one big fire, flood, or storm... or one big oil/waste spill, or 10 people with guns... All of these things can reverse everything you have done to your land. I am not saying it is a bad investment to be self-sufficient... but I feel the acquiring the skills to be self-sufficient are much more urgent than actually taking that plunge.

If I were really worried about total economic ruin... Gold, silver, precious stones all become more worthless than money - you can burn money for kindling, but you can't eat gold, and it doesn't keep you warm. Surely I would rather a ratchet/socket and the ability to fix the timing on a car, or the ability/knowledge/supplies to distill my own liquor (a valuable currency, pain killer, sanitizer, and fuel). But I am talking doomsday scenarios here, and very few wackos actually plan/stock up for such a thing... I aspire to be like that but I am just not... not yet.
 

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My grandfather just pulled his money out of one bank. He knows someone who works there and she said "I would pull it if I were you." He thinks next year will be similiar to 1929.

I dont know what I think but I think this economy sucks and is making me nervous. I do think I will stock up a bit more.
 

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Quote:

Originally Posted by DesireeH View Post
My grandfather just pulled his money out of one bank. He knows someone who works there and she said "I would pull it if I were you." He thinks next year will be similiar to 1929.
.
which bank? If you don't mind sharing.
 

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Originally Posted by ShaggyDaddy View Post
T
If I were really worried about total economic ruin... Gold, silver, precious stones all become more worthless than money - you can burn money for kindling, but you can't eat gold, and it doesn't keep you warm.
I always wonder what the people hoarding gold think they're going to do with it. If civilization collapses, its not like its gonna be some Rennaissance Faire with everyone running around paying for things in gold doubloons.
 

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Originally Posted by savithny View Post
I always wonder what the people hoarding gold think they're going to do with it. If civilization collapses, its not like its gonna be some Rennaissance Faire with everyone running around paying for things in gold doubloons.
I don't think people buy gold thinking the world is going to come to an end thats a bit different then a depression. Gold is a way of keeping your money solvent so when you buy it ( low hopefully) and then say gold goes WAY up ( dollar goes down) you keep it...Dollar goes back up you cash out above what you bought it for. Its a way of knowing you have cash that is more stable and your more in control of when you cash it in or not. Its tangible its not digital money, there aren't penalties. Now I'm talking about gold coins not gold stocks.

My family has kept gold for a few generations and its worked out well for us. Also a good way of sheltering some of your money from estate taxes


I do agree that its not a great idea to keep 10,000+ in gold around but having a few coins plus some silver can really be helpful..

Also just in case the world comes to an end...shirt pockets, false floors and basement nooks are a better place to keep your gold...not in easy to steal tin cans...
 

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yeah, Apocalypse supplies are a hedge against an unstable world, gold is a hedge against an unstable economy.

It is all a matter of how bad you want to be prepared for. Personally since self-reliance is a day-to-day benefit in a thriving, waxing, waning or even flat out collapsed world, it makes a lot more sense to me than preserving "wealth".

I would rather give my kids rice and beans after an earthquake than $100,000 worth of shiney in 30 years. I am not saying you have to choose one or the other, I am just saying wealth loses to survival.
 

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Quote:

Originally Posted by ShaggyDaddy View Post
The number one currency in my opinion is skills, number 2 is tools, a semi-distant number 3 is food storage. These 3 are super valuable in day to day life even if there is no disaster/collapse. The more you can do for yourself/by yourself before a disaster, the more you can do after the disaster.

Land would be great, but the truth is there is a lot of land out there, and land is not portable... not like skills and tools. Imagine one big fire, flood, or storm... or one big oil/waste spill, or 10 people with guns... All of these things can reverse everything you have done to your land. I am not saying it is a bad investment to be self-sufficient... but I feel the acquiring the skills to be self-sufficient are much more urgent than actually taking that plunge.

If I were really worried about total economic ruin... Gold, silver, precious stones all become more worthless than money - you can burn money for kindling, but you can't eat gold, and it doesn't keep you warm. Surely I would rather a ratchet/socket and the ability to fix the timing on a car, or the ability/knowledge/supplies to distill my own liquor (a valuable currency, pain killer, sanitizer, and fuel). But I am talking doomsday scenarios here, and very few wackos actually plan/stock up for such a thing... I aspire to be like that but I am just not... not yet.
Excellent, thank you. I can only imagine what my DH would say if I tried to build a still... he's flummoxed enough by the chicken coop already. I agree that skills, knowledge and education are more valuable than anything; I guess I was in a "tangibles" mindset when I asked the question. Silly me, any good Sharon Astyk reader should know better.
 

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You could also think about putting some in bonds or other places. My dh and I will be doing this soon too, getting out of the housing market, hiding our equity somewhere, till he retires from the military and then go cruising on a sailboat! We haven't done that much research yet, but we do intend to buy some bonds, some in ING, and some in maybe stocks? though lately I'm not so sure....
 
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