Dismayed Over the New Sweetwater/Synchrony Tax

[veinbuster]

Side Note Rant - Cash In Hand Is Even Better And Even Better Than That Is Having Your Money Pegged to A Tangible Hard Asset Like Gold Or Silver, Especially Right Now. I Am Not A Big Fan Of Banks But They Are a Necessary Evil In Most Cases. The Problem Is When You Put Your Money In The Bank It Really No Longer Is Your Money In Some Instances When A Bank Goes South...And They Do Go Under And There Are Bank Runs. I Know....You Will Say Your Funds Are Covered Under FDIC But That Is Only Up To $250K. The Only Problem Is The FDIC Is Nowhere Near Capable Of Covering Everybody If The Banks Go Under. The Same Idea Is If We All Walked Into The Bank At The Same Time And Wanted To Withdraw "Our" Cash. They Don't Hold Anywhere Near The Amount Of Cash To Make Everybody Whole In That Instance. So...If A Bank Fails, And They Do...Silicon Valley Bank Is Just One Example Of Many And You Have Over $250K In That Institution, You Are Toast And Good Luck On Quickly Getting Your FDIC Money Quickly. Most People Don't Have Any Idea What Their Fine Print On Their Bank Accounts Really Say And What That Really Means For Them In A Rare Situation Like A Bank Collapse Or Bank Run But It Does Happen. Your Money Isn't Really Your Money In Every Situation When The Bank Holds It. The Same Goes With Safety Deposit Boxes In Those Same Situations. It Is A Scary Thing When The Government Just Prints Money At Will And Your Currency Is Not Tied/Pegged To A Physical Asset Like Gold Or Silver, Commodities, Etc.

It Is Something To Be Aware Of And Think About.

I think about the “big one” in the economy from time to time. I think that if it does happen in my lifetime, the world has much bigger problems than how much of my share of money finds its way back to my hands. So it isn’t worth losing sleep over.

That said, I do make a point of not having to liquidate when the things I own aren’t valued very well. I always have enough to cover my expenses for at least 18 months.

 

[RickP]

I think about the “big one” in the economy from time to time. I think that if it does happen in my lifetime, the world has much bigger problems than how much of my share of money finds its way back to my hands. So it isn’t worth losing sleep over.

That said, I do make a point of not having to liquidate when the things I own aren’t valued very well. I always have enough to cover my expenses for at least 18 months.

Wisdom. If you don’t have a reserve, YOLO means “you only lose once.”

 

[RC Mike]

Side Note Rant - Cash In Hand Is Even Better And Even Better Than That Is Having Your Money Pegged to A Tangible Hard Asset Like Gold Or Silver, Especially Right Now. I Am Not A Big Fan Of Banks But They Are a Necessary Evil In Most Cases. The Problem Is When You Put Your Money In The Bank It Really No Longer Is Your Money In Some Instances When A Bank Goes South...And They Do Go Under And There Are Bank Runs. I Know....You Will Say Your Funds Are Covered Under FDIC But That Is Only Up To $250K. The Only Problem Is The FDIC Is Nowhere Near Capable Of Covering Everybody If The Banks Go Under. The Same Idea Is If We All Walked Into The Bank At The Same Time And Wanted To Withdraw "Our" Cash. They Don't Hold Anywhere Near The Amount Of Cash To Make Everybody Whole In That Instance. So...If A Bank Fails, And They Do...Silicon Valley Bank Is Just One Example Of Many And You Have Over $250K In That Institution, You Are Toast And Good Luck On Quickly Getting Your FDIC Money Quickly. Most People Don't Have Any Idea What Their Fine Print On Their Bank Accounts Really Say And What That Really Means For Them In A Rare Situation Like A Bank Collapse Or Bank Run But It Does Happen. Your Money Isn't Really Your Money In Every Situation When The Bank Holds It. The Same Goes With Safety Deposit Boxes In Those Same Situations. It Is A Scary Thing When The Government Just Prints Money At Will And Your Currency Is Not Tied/Pegged To A Physical Asset Like Gold Or Silver, Commodities, Etc.

It Is Something To Be Aware Of And Think About.

When I was stationed at Fort Knox, there was a lady that would be walking along the highway every day. She was elderly, usually dressed in shabby clothes that appeared more like rags.

One morning, she was hit by a car and died. Apparently she had no family. Somehow an acquaintance of mine ended up cleaning out her home. It was very run-down. The interesting part is that she had cash stuffed everywhere. In the furniture, under her proverbial mattress, and in the walls. I don’t recall ever being told how much, but the impression was that it was a sizable amount.

Point is, she had prepared for an end—just the wrong end. Had she put that cash in the bank and bought herself a car, she’d likely have lived a bit longer and more comfortably.

 

[Tucson Thump]

From what I've seen hat behavior seems consistent with those who grew up during the Great Depression when the banks closed. My father and uncle always had cash stuffed in pockets of suits and other clothes.