Ever since the financial crash of 2008 many people have begun to distrust the entire banking system. An industry seen as ultra safe, secure and conservative was shown to be run by a bunch of reckless gamblers more interested in personal profit than protecting the money we entrusted to them.
The change in the general attitude towards banks and bankers has led to many individuals looking at ways to remove their money and assets from the banks entirely. The major problem of this is that the financial system is so intertwined with all of our lives that it is almost impossible to survive and live a normal life without relying on the financial system in some way or another.
Why the banks cannot be trusted with your hard earned cash
The banks and the people who run them engaged in a huge amount of reckless lending to people who should never have been given loans in the first place. There was the inevitable result of mass defaults and people with bad credit simply being unable to repay all the money they owed. At this point the whole system crashed. There has since been an explosion in alternative types of lending that avoid the banks altogether.
It has been shown that massive financial institutions that make profits in the billions can suddenly become bankrupt and lose all their customers’ money. Sometimes there are bank runs where worried consumers try to pull their cash out in time, but often it happens so quickly that no one can get any of their money back. We also cannot rely on insurance for our deposits because the insurance companies are not immune from going bust either.
It is important that you understand how flimsy the current financial system truly is in order to protect your money and assets from any rerun of the Great Depression. If you act now to take your money out of the banks then it might be possible to have some purchasing power remaining when everyone else has been wiped out.
What can we do to protect our money?
Faced with the very real possibility that we might wake up one day and can’t get any of our money out of the bank there are a few things some people are now doing to protect themselves. Many professional investors and ordinary citizens are taking their money out of the banking system and converting it into other assets.
One popular way to save and store money is to buy physical gold and silver bullion (bars or coins.) This can be kept in private vaults or at home in a safe, and is immune from banking crashes. This is not to be confused with the gold and silver certificates that are traded on Wall Street – those are as vulnerable as the digital cash in your account.
Many wealthy people have recently been buying artworks and jewelry as means of storing value and keeping their money out of the banking system. Other physical assets like this include classic cars and antiques.
One might think that simply withdrawing all your cash and stuffing it under your mattress might be enough, but unfortunately it is not. If the entire financial system collapses and all the banks become worthless then in all likelihood so will the entire currency itself – no one will trust it any more and there will be mass panic. This means that you will simply be left with a bunch of paper that is literally worthless.