I don't know where these people are getting their information, but it looks like just another attempt to protect corporate interests while misleading the public.

See this article: http://dailynews.yahoo.com/headlines/tc/story.html?s=v/nm/19990129/tc/millenium_1.html

They say that only 1 out of 8 people plan to take extra money out of the bank. BULLSHIT!! On this forum it is more like 90% and in other recent news they more accurately predicted 38% to over 50%. This must be part of the governments calm down spin plan already starting. LIES!

-- infoman (infoman@net.com), January 29, 1999

Answers

infoman,

There is a lot of government spin out there right now, but the figures you're talking about sound like they could be from the December 1998 Gallup Poll on Y2K:

http://www.gallup.com/POLL_ARCHIVES/9812y2k.htm

Withdraw all your money from the bank...

Yes 16%, No 82%, No opinion 2%

Withdraw and set aside a large amount of cash...

Yes 31%, No 66%, No opinion 2%

16% of the country trying to withdraw all their money from the bank may not sound like a high percentage, but it's a high enough percentage that regulators would have to come up with a plan for rationing cash.

That 16% figure is why we're hearing so much government spin right now.

-- Kevin (mixesmusic@worldnet.att.net), January 29, 1999.

Polls are at best, unreliable. What you can "take to the bank", are the facts. And the facts are that: 1. The banks operate on "fractional reserve banking" 2. Banks keep less than 2% of deposits/funds in cash (you know, green MONEY)physically in their bank possession 3. 1% of our population , now at more than 270,000,000 total, who would withdraw a months worth of cash (let's set it conservatively at $2,000.00), would be more than enough to set peril to the banking system.

Here is part of an observation on the bank situation: ---paste--- But today's banks are far more aggressive: in the same way they are over-invested in the largest derivatives exposure in the history of civilization, they want to shave the reserves down to a paper-thin level of just barely over 1%. Why? Because they can loan more of your money to everybody else, charge interest on the loans, and put more profits in their pockets. Or they can take more of your money and invest in highly-leveraged derivatives. Besides, they know the down-side risk is nothing: the government will just bail them out if they collapse (i.e. LTCM, the S&L crisis, etc.). There is every incentive to risk more and virtually no incentive to play it safe.

And now, when they see trouble on the horizon, who will they blame? YOU, the customer, of course! It's your fault that you want your own money, it's not their fault that they got too greedy and abandoned common-sense reserve levels. --- End Paste ---

To read more about the Fractional Reserve Banking System - Fractured Reserves

-- Mr. Kennedy (y2kPCfixes@MotivatedSeller.com), January 29, 1999.

what money. The banks has only magnetic micro dots.

-- dave (wootendave@hotmail.com), January 30, 1999.

what money? I live on a semi-fixed income - everything that isn't needed for the basics immediately gets turned around and used for preparation.

If I had a lot of money in the bank right now, I'd be spending it preparing.

Arlin

-- Arlin H. Adams (ahadams@ix.netcom.com), January 30, 1999.

I agree Arlin - a lot of us have had to look at the $45.00 left in the bank for the month and wonder where the 3 to 4 months of money is to take out for y2k.....

Come to think of it, that's probably why the banks only have 1% of deposits in actual cash. Everybody's bank balance is near 0...... (just a spoofetic thought)...

-- Mr. Kennedy (y2kPCfixes@MotivatedSeller.com), January 30, 1999.

Most folks don't have any "money in the bank". Most of their money flows throgh the bank. Seniors hold the bag in the form of C.D.s. Watch for higher than normal rates on 1 year C.D.s in the coming months. Tye up those senior dollars fast before they learn of Y2K.

-- Bill (y2khippo@yahoo.com), January 30, 1999.

And the solution is.... only keep in the Bank what you absolute need to pay the bills. Btw. The gouverment hates that. You do not want to let anyone know that you are taking money out. So take it out in installments. Open a second accound. each other paycheck goes into the other account. Do NOT withdraw larger then usual summs of Money. Get Travelerschecks, Postal moneyorders. Buy small stuff with the travelers checks and keep the change at home! Banks have to report withdraws of larger then usual amount of cash the same as they report large amount of cash deposited into accounts.

Be sly or you may end up in trouble later. Remember don't trust that smiling face behind the counter. You don't know who she or he is talking to.

rickjohn

-- rickjohn (rickjohn1@yahoo.com), January 30, 1999.