Friday, January 9, 2009

Damn Banks

When you read this article, the folks over at the Wall Street Journal seem to think that saving is the problem.

Please remember when you read this, that the folks at the WSJ are the folks that have been cheerleading for the catastrophic policies that have landed our sorry butts in the pickle we are in.

There will be any number of serious students of economics who will froth at the mouth at this next statement, but I don't think that credit is real and I think that the only money that you truly have is that which you have saved.

So I am saying that you need to start saving, real savings. You need cash on hand, not some zeroes in a banks computer somewhere. A little gold, a little silver. Maybe some trade goods that you think will be more valuable later than they are now.

Get out of debt and try not to indulge in too much self flagellation as you are doing it. If you really need to, put your savings in a tin can and tell the banks to go take a flying F#@%.

I cannot prove anything, but we aren't going to be getting out of the mess we are in either easy or soon. You had better have something put aside to get you through.


An Unsheltered Life said...

I use my bank mostly to cash checks. If they don't like my $11.xx balance? Too bad. I'm not paying any fees for having such a low balance, and I never promised to let them keep a certain percentage of my money.

Besides: I have an easier time dealing with tangible things. I'm less likely to spend my money if I have to hand actual bills or coins to the cashier. (Not that I go on wild spending sprees even with the debit card, but still.)

Anonymous said...

I think your dead on. Savings savings savings. Our current woes are mainly due to the savings deficit of the past several years. Humans normally save during the good times so that they'll have money in the bad times. Humm where have we heard this one before???

But over the past 5 years or so Americans had a net savings of 0%. Thus now that we are in a down swing we have no savings from which to pull from. So we are forced to build on them further devestating our economy.

An economy which is absed on a ponzie scheme to start with so its probably not much of a loss.

Mayberry said...

It's contrary to our Ponzi scheme economy, but really is common sense. Savings in real coinage has always been a hallmark of prudent financial planning. Always has been, always will be!

Sand River Dog said...

Right on, Unsheltered: use the bank as a check repository but take the money and run. Then hide it someplace and forget where you put it cuz money in the pocket sure does burn holes fast.
Tangibles tangibles tangibles is where it's at, set enough aside to cover property taxes the next ten years or so, trade for evrything else.
Hopefully, the local gov't will take gold as payment- and won't ask where it comes from.

theotherryan said...

I save 15% of my take home, more if you factor in precious metals. Not comfortable having a bunch of cash at home until I get a safe, even then it is still an issue. I figure at least a months salary in the bank, three is better. A months cash expenses (not rent, utilities, etc but food, fuel and such) should be kept on hand in mixed bills. Stashing some precious metals is also a good idea.