A lot of peeps aren't tuned in until a bad situation affects them personally. I learned long ago to analyze events unfolding and see if those dots connect with my personal dots. In this case they did, my take-home $$ is half what it was last year. This is why we prepare. Being debt free going in helped a lot.

On the bright side my taxes will be less and theoretically I get to spend more time at the gym.

maybe off topic, but has anyone thought about what happens IF the banks all go TU at the same time, a la 1929? What happens to all those checking/saving accounts? Does that electronic money just evaporate?

I'm not a believer in stocking gold/silver (b/c, really, it has no value other than what someone wants it to be). But keeping cash on hand .... good/bad? I might hit the ATM a few times this week and make sure to have some on hand.

If we fall back to a barter system I bet most of us are SOL.

A lot of banks (certainly not all) went TU in the last crises. The primary source of protection is FDIC (federal deposit insurance corporation), which insures deposits up to $100,000, and was raised to $250,000. That is a "per account" limit, so, a diversity in banks and accounts may be a viable option. Also, to avoid having to pay out these funds, the FDIC fostered many takeovers of at risk banks by stronger banks.

I doubt the furlough seriously puts many banks at risk; banking "stress tests" have caused them to raise reserves etc.

But when you ask "all", the only response is that no one knows, but "all" is very unlikely. There are some very well managed local and regional banks out there that get little or no publicity, and I would expect them to sail through with little or no problem.

Frankly, IMO there is too much hype and fear about this in the news. Someone always seems to try to use fear to sell their idea. The last shut-down 17 years ago really was more of a glitch than a disaster.

That's a good point. I was in high school at the time, but I don't recall anything drastic seeming out of place.

More than the sequester though, I worry about our having to (again) raise the debt ceiling and what that could do. While I realize it's likely a different topic, it dovetails with this one.

I wonder if FDIC makes any difference when we're so many trillions in debt? Where are they going to magically come up with enough money to cover several hundred thousand (millions?) of accounts?

I think the Federal Reserve and the Federal government have already demonstrated that there is no limit to how much "money" they are willing to create out of thin air to keep the financial system solvent, if it came to that. So, I think the risk of widespread bank failures all at once is remote. If people started panicking for some reason and rushing to their banks and ATM's all at once, the Fed or President will just declare a bank holiday until the PR damage control team can flood the airwaves with reassuring messages and every cable channel will be showing the good movies, like during sweeps week, to distract the masses.

I think it would take a tremendous event to panic the bulk of American's at the same time into a bank run, short of some drastic action from the authorities first, like a devaluation of the dollar.

Speaking of bank holidays, what's going on with Panama and it's bank holiday? Haven't had time to look into that at all. Doesn't sound like another Cyprus situation, but sounds ominous.

I really want to answer this question, but there's no easy answers except short term stop gap measures, like having an emergency fund. The subprime meltdown in 2007 and financial crisis in 2008 demonstrated how quickly booming industries can dry up in the blink of an eye (construction, mortgage lending, real estate, etc.) and many of those jobs have not and will never come back within any reasonable time period. Government hasn't really changed as quickly as the private sector, but who knows if that will always be the case.

I doubt any government shutdown will have any remotely similar effect, but just saying that trying to be prepared and diversified, employment-wise, can be tricky in today's lean, just-in-time climate. Many of us may already be working more than one job, which might cushion any blow, if we're still getting the income from the other job(s).

Being flexible about moving where the jobs is another tactic, but with kids or an underwater mortgage, not really practical for many people.

Short term:

Have a good rotation of supplies at home. You'll want to cut out eating out to save $ and need to cut into your pantry. Have a good supply of other items as well, its hard to interview for a new job if you have ran out deodorant.

Try on your interview suit once a year to see if it still fits. Keep your resume up to date. Network with others during times when you have a job using tools such as linkedin and professional organizations like ISACA, ISC2, etc.

Keep your debt low and credit score good.


Long term:

Live in an area where there are jobs. I'd love to live on the farm in WV but then I'd be limited to one job over an hour commute away so if that one job goes away I'd have no plan B. Instead I live in an area where there are dozens of jobs within walking distance and even more within driving distance.

No politics -

So non-essential personnel are going to be told to stay home, if I read the local news correctly. And why are we paying non-essential personnel - think about it. Just a thought.

No income - short term - cut back. No cable, no internet (leech off of free Wi-Fi), no going to movies. Go to the library and read books or sign out movies there. You'd be amazed what you waste money on. Eat cheaply but with an eye to nutrition. No fast food, no alcohol, no take out. Consider cheap buffets.

Long term - get a job where Uncle's political vagaries won't effect you.

This will probably result in a lawsuit unless it has already been addressed. The FDIC website calculator looks at it as an account being the person. Most people have several accounts at a given institution. (i.e. savings, checking, & money market) FDIC has been running a commercial around here where they specifically say per account and not per person.

I would recommend that you go further than that. Update your resume at least quarterly. Have friends who are super-freakin'-nitpicky and ask them to go over your resume with a fine-toothed comb. Return calls from recruiters.

My specialty is in high demand, and occasionally I will take an interview even if I'm happy where I'm working. This tests not just the interview suit but the interviewing skills and procedures. It also helps you understand better what the market for your skills are like. Don't lead anyone down the garden path -- be clear about your level of interest. You know your industry better than I do (unless, perhaps, you're in network security) so don't do this if it will burn any bridges. The idea is to use this time to build your bridge-building skills.

For me, LinkedIn has been highly valuable. InfraGard has been valuable. (ISC)2 can be a tremendous time sink -- but the cert I earned had a huge and lasting impact upon my career. I like the idea of ISACA and ISSA but don't have a lot of time for them. Most important to me are the industry contacts I make and maintain. It's very handy to have a good reputation.