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.
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