With the recent increase in bank failures a lot of people are worried. It’s not really a problem -unless you are concerned about money, income, and paying bills. Then there’s the whole economic collapse thing. If you aren’t worried about those things it’s not an issue.
In the real world, it’s an issue.
I wasn’t too worried about my local bank but then they sent out an e-mail stating how everything was fine. That had me worried. I’ve had one my banks go under before and that was well before the 2008 crash. The bank I had my house mortgage with went belly up in the 80s.
Funny thing about that. That bank wasn’t my first choice for a mortgage but my first choice refused me. Eventually the bank that refused me took over the failed bank and ended up with my mortgage anyway. The thing about owing money is that someone will take over your debt.
It’s the savings side that’ll get you. The easiest thing to do is to keep deposits under the $250,000 insurance limit. The government may cover more but don’t count on it. One thing to keep in mind is that while you’ll get your money back it might take a while. Don’t put all your eggs in one basket.
There is some concern that the fund that backs the Federal insurance would soon run out. The numbers don’t look good. It’s my guess that the government would step in with a huge inflow of money to cover the losses. They have the printing presses after all.
It’s going to be tough for people who are heavily leveraged with loads of debt. I’m no financial advisor but it would seem that reducing that exposure would be a high priority. Most people will probably muddle through. Just guessing, but it doesn’t seem like a full blown financial collapse will hit just yet.
Even if that would happen it’s not the end of the world. There’s a period when everything resets, but then life goes on for most people. The trick is to get through the tough transition phase without missing too many meals.