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Banks Prepare For Freaked-Out Customers

Friday, October 4, 2013 - 5:44 PM
There's no telling what might happen if the U.S. government is forced to default because a few dozen crazies in the House refuse to lift the debt ceiling. But risk-averse bankers are preparing for the worst.

Banks prepare for freaked-out customers - LA Biz Observed
7
ShorebreakShorebreak2,694 posts since
Apr 6, 2010
Rep Points: 14,610
1. Friday, October 4, 2013 - 6:37 PM
The government crazies cannot afford to default!  Every news program I watch with all the professionals state the same thing.  They are playing their "gotcha" games with each other but no one thinks the idiots will allow the country to default.  It will be political suicide and can cause worldwide turmoil.  I am only going to raid all my liquid accounts next week or so (as we get closer) because I "may" want to make some big purchases.  It has nothing to do with that ridiculous article.  I do hope as we get closer to "D" Day, we will not see a rash of articles trying to give us more concerns than we need.  BTW, all customers who may want to withdraw large sums of money from banks are not necessarily "freaked" out.  They just may be preparing for large purchases or other places to store their money.  No big deal. 
3
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,150
2. Friday, October 4, 2013 - 9:17 PM
Shorebreak, the problem with the article is it didn't say exactly what would happen to banks if the govt defaults. The banks don't need the govt to function to stay open.  As far as I can tell, nothing would happen. I am certainly not going to panic even if there are irresponsible articles suggesting everyone is going to pull their money out of banks. This is hysterical nonsense.

BTW, there is no reason for the govt to default. Even if Congress doesn't approve an increase in the debt ceiling, there is more than enough revenue to pay debt service on our debt. To say this govt shutdown is because of a few crazies in the House is a gross simplification. It is lot more complicated than that. Furthermore, they will increase the debt limit; they always do.
3
loulou553 posts since
Aug 3, 2010
Rep Points: 3,432
3. Friday, October 4, 2013 - 10:01 PM
Why do some people assume that when one posts an article to this site that one endorses what the article advocates? I never have understood that logic.
3
ShorebreakShorebreak2,694 posts since
Apr 6, 2010
Rep Points: 14,610
4. Friday, October 4, 2013 - 10:18 PM
Sorry Shorebreak, I didnt realize you were  quoting the article.
2
loulou553 posts since
Aug 3, 2010
Rep Points: 3,432
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