How To Prepare For Another Bank Run

[troubled soul]

How To Prepare For Another Bank Run....​

recent SVB and FTX collapse....are very cautionary tale .....How to avoid future bank run?
How someone can protect himself from this type of bank run in future ?
What precaution one should take ?
Red Flags?
Your thoughts ?

Thanks

 

[RealDude]

With my weapon of persuasion made from Perth Gold, I am at the front of the queue at every bank

 

[CyprusLawyer101]

Try one hour on the treadmill walking , with interval bursts of fast running for a 1-2 minutes. Basically adjust the time of the running burst based on how close to the bank you could park. Do this every day or every other day and you should be fine.

 

[JohnnyDoe]

Buy btc and xmr from your couch. You shouldn’t burn more than a couple of calories doing that, contrary to the good advice above from @CyprusLawyer101. Still, that training will become useful when btc reaches $1m and gold diggers show up.

 

[JackAlabama]

Buy btc and xmr from your couch. You shouldn’t burn more than a couple of calories doing that, contrary to the good advice above from @CyprusLawyer101. Still, that training will become useful when btc reaches $1m and gold diggers show up.

Thats the best bet.

 

[Martin Everson]

How To Prepare For Another Bank Run....​

recent SVB and FTX collapse....are very cautionary tale .....How to avoid future bank run?
How someone can protect himself from this type of bank run in future ?
What precaution one should take ?
Red Flags?
Your thoughts ?

1. Diversify in where you hold your money.

2. Use of treasury bonds to hold cash above deposit protection limits or alternatively AAA rated cash MM liquidity funds.

3. Any hint of bad press move your money immediately and don't ever wait to see how it plays out.

In terms of red flags its difficult as balance sheet reports etc are lagging indicators. By time report has been realized bank may already be in trouble. You really only got press to watch carefully for bad news.

 

[WorldCitizen99]

For people with USD on Wise, would you convert some to a currency that has account details i.e. separate account outside the US - e.g. SGD, AUD
Wise's US bank is Federal Community Savings Bank

 

[Martin Everson]

For people with USD on Wise, would you convert some to a currency that has account details i.e. separate account outside the US - e.g. SGD, AUD
Wise's US bank is Federal Community Savings Bank

Personally I would never ever hold USD. Holding USD outside US is even worse. Wise could be cut off at any point from its USD correspondence bank. The other two currencies are no better on Wise. I think they use DBS bank for SGD not sure on AUD.

 

[WorldCitizen99]

Personally I would never ever hold USD. Holding USD outside US is even worse. Wise could be cut off at any point from its USD correspondence bank. The other two currencies are no better on Wise. I think they use DBS bank for SGD not sure on AUD.

They use Wise Asia-Pacific Pte. Ltd. for SGD and MoneyTech in Australia

 

[void]

Personally I would never ever hold USD.

I noticed this stance of yours in the past already...
Can you elaborate on what you mean by this practically? I guess you don't hold all your liquid cash in BSD, do you?

 

[Martin Everson]

Can you elaborate on what you mean by this practically?

I would pick a currency other than USD. USD outside of US is a high risk currency to transact with in today's world. I discussed that in detail in other threads etc. I fall on the side of de-dollarization so I am also biased in that respect.

I guess you don't hold all your liquid cash in BSD, do you?

I don't bank in the Bahamas. I used to hold my assets in EUR based treasury bonds but switched to foreign real estate last year.

They use Wise Asia-Pacific Pte. Ltd. for SGD and MoneyTech in Australia

Ok so use of DBS Bank for SGD is gone then.

 

[void]

I would pick a currency other than USD. USD outside of US is a high risk currency to transact with in today's world. I discussed that in detail in other threads etc.

all currencies (including EUR under control of incompetent ECB) are collapsing against USD and any kind of "de-dollarization" will not likely happen in the next decade... I might be wrong seeing what I'm seeing... nevertheless, I probably missed the threads you mention, will look at your arguments

 

[Martin Everson]

all currencies (including EUR under control of incompetent ECB) are collapsing against USD

Do you know why that is?

 

[void]

Do you know why that is?

enlighten us

 

[CyprusLawyer101]

What @Martin Everson is saying( other than the prediction on the dollar which could be anybody's guess) , actually has practical validity. If you keep your funds in USD with any bank in the world, there is the immediate risk of your bank being cut off the swift for USD for whatever reason you may think of; and history has shown that only or mostly ( at least from what I know) the US is the only player who dares to take such actions.

 

[WorldCitizen99]

I would pick a currency other than USD. USD outside of US is a high risk currency to transact with in today's world. I discussed that in detail in other threads etc. I fall on the side of de-dollarization so I am also biased in that respect.



I don't bank in the Bahamas. I used to hold my assets in EUR based treasury bonds but switched to foreign real estate last year.



Ok so use of DBS Bank for SGD is gone then.

Actually you are right - they are still partnered with DBS - that is the bank listed for receiving Stripe and Google payments
For transferring money within Singapore via FAST, it is the bank I listed

 

[void]

What @Martin Everson is saying( other than the prediction on the dollar which could be anybody's guess) , actually has practical validity. If you keep your funds in USD with any bank in the world, there is the immediate risk of your bank being cut off the swift for USD for whatever reason you may think of; and history has shown that only or mostly ( at least from what I know) the US is the only player who dares to take such actions.

what's your odds estimation that this will happen to any German (or even any EU-based) bank in the next 12 months?

 

[CyprusLawyer101]

what's your odds estimation that this will happen to any German (or even any EU-based) bank in the next 12 months?

I really don't know, I have never assessed this risk before Martin had mentioned it.
But I believe it could happen abruptly anywhere and for no apparent reason, but I would say that although this risk should be kept into consideration any panic created from this risk would be unreasonable.

 

[void]

I really don't know, I have never assessed this risk before Martin had mentioned it.
But I believe it could happen abruptly anywhere and for no apparent reason, but I would say that although this risk should be kept into consideration any panic created from this risk would be unreasonable.

exactly - let's not forget that anything is just a matter of probability

Do you know why that is?

I'm honestly interested... why is that?

 

[GeneralGogol]

Silicon Valley Bank offered sweep accounts to anybody with $1M+. If you lost money in this bank failure you're an idiot.

What @Martin Everson is saying( other than the prediction on the dollar which could be anybody's guess) , actually has practical validity. If you keep your funds in USD with any bank in the world, there is the immediate risk of your bank being cut off the swift for USD for whatever reason you may think of; and history has shown that only or mostly ( at least from what I know) the US is the only player who dares to take such actions.

Yes people say it but in practise, it never happens to anybody unless you're a Russian oligarch (I guess we have many Russian members here that don't exactly advertise that fact). Happened to me a few times that a bank told me "you can't wire USD to this particular country". I just converted to EUR and then wired.

In the WORST case- if you banked at Rietumu, your USD balance was just converted into EUR when they lost their US correspondent bank. Not the end of the world.

I fail to see how "Foreign real estate" is safer than holding US treasuries but to each their own... In my opinion buying a villa\hotel in Phuket or some farmland in Panama is a LOT riskier than holding cash in multiple banks and currencies. Plus you actually get INTEREST from banks now. 4% risk free in USD is much better than even making 10% on some farmland investment (after you take into account fees, taxes) not to mention you can lose it all on currency fluctuations.

what's your odds estimation that this will happen to any German (or even any EU-based) bank in the next 12 months?

0.001% chance and even if it happens (as it happened to Rietumu for example) your USD balance is just exchanged into EUR balance. So worst case you will pay some fees.

Your biggest risk is you wiring to some semi-shady country\person and your bank gets a call from the US Fed asking for documents. Most likely your bank will prefer to close your account rather than fill 300 pages explaining what you do and who you are.