Here’s a tale of life in Texas during the S & L crisis in the 80s:
Common problems included:
1. Inability to get at checking or savings accounts for months at a time.
2. Inability to get employers to immediately turn off Direct Deposit, resulting in some paychecks simply vanishing forever.
3. Inability to pay bills even though technically you had money, at least according to the FDIC. (This caused numerous foreclosures despite the person never having missed a payment before and having the cash but unable to access it.)
Now, what about employers who have mandatory Direct Deposit? Case won’t cut me a check. And how long will it take for them to change policy on that, when TSHTF?
October 2, 2008 at 2:53 pm |
Are you kidding? Take a good long look around Case and tell me which closet you think the hardcopy check technology was put away in. We’re talking about the Eloi, Jeffrey: if things wad-up like this, you’d be lucky as hell to find an eighty-six year-old granny who would know how to do it once all the stuff was gathered in one pile.
Good luck, mate.
October 2, 2008 at 3:39 pm |
It gives pause, as it hasn’t been part of my contingencies. I’m in a B-class bank, but I’m not sure that will help. I’ve mostly been thinking about gas and actually being able to be on-site, but if I have no money, gas is a moot point. It’s only been 8 years, so it isn’t totally hopeless. But as you say, it would require thought, and initiative.
October 2, 2008 at 4:06 pm |
Presumably they cut hard checks for vendors and such.
I’d be more worried about Case itself not having the access to cash to make payroll.
My mother worked for an S&L that was taken over by the FDIC, and there was never a problem anyone getting access to their money–Friday evening, it was an S&L, Monday morning, it was FDIC–even if it was over the mystical 100k. (Come to think of it, it was FSLIC back then). And everyone got paid, which of course for her point of view was the important thing. And she made mortgage payments to the same address for another year or so (employee discount on the interest), until it got sold to an outside bank, and the main difference then was that she lost the lower interest rate from being an employee.
So maybe by then the FDIC folks had gotten their act together, or maybe the Texas folks were unusually dumb.
October 2, 2008 at 10:56 pm |
I would have them put my money in a small but sound bank or a good credit union. I don’t think credit unions have been so reckless and small banks are stocked by old time farmers who own their land free and clear. I remember in the first depressiomn our local small bank was one of the few that remained solvent but they still had to close during Roosssavelts (sic on purpose)bank Holiday. State Farm Insurance Co also has a bank and I believe they are pretty sound, but not good for normal banking.
Jimbo
October 3, 2008 at 5:14 pm |
K-
Yikes, you’re right!