Will Treasury Bills be a sufficient safe-guard?

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I don't feel too comfortable in having any stocks or preferred stocks any longer and don't want to put the cash into the bank nor in my house. I realize my question may be flammable, however, do you think large amounts of cash will be ok in short term treasury notes? There really doesnt't seem to be any other alternatives. Skip the gold or silver comments. What would you do with a few hundred grand?

-- Feller (feller@wanna.help), September 06, 1999


Before or after I sobered up? Blondes or Brunettes? Gold or Silver? Semiauto's or Revolvers?...seriously...that is a lot of cash but if the Government declares insolvency due to economic collapse then T-Bills would be the equivilant to John Wayne Brand Toilet Paper..."rough, tough and don't take no shit offa no-one!" Keep th cash in moderate amounts stashed at 'secure' locations

-- Billy-Boy (Rakkasn@Yahoo.com), September 06, 1999.

If TEOTWAWKI then kiss it all goodby. If less, then T-bills or equivalent. If recovery is seen in the future, then you will get your electronic bits eventually. The problem is how to operate short term if recovery is in progress. Cash + consumables on hand. Your guess or mine how much how long. Without confidence in the system or availablity of goods, then it is all worthless anyway. Your own skills, knowledge and resourcefulness will become more valuable than ANY paper as time goes on. IMHO

-- curtis schalek (cschalek@earthlink.net), September 06, 1999.

You do understand that cash in treasury notes is still not actually cash--it's digital money, which is precisely what is mortally threatened by Y2K. The only way to be absolutely sure your money is safe is to have cash in hand, under your control. If I were in your situation I would convert it all to cash and hide it in several safe spots.

The severity of Y2K should be readily apparent by March or April. If it's really bad, congratulate yourself on being prudent; if it's not bad at all, congratulate yourself on being prudent but take the cash out and start reinvesting it in the stock market or whatever. All you will have lost is a few month's interest or income.

-- cody varian (cody@y2ksurvive.com), September 06, 1999.

Feller: you might want to visit my website at http://www.y2ksurvive.com and check out my Money page, where I go into this more thoroughly than on this board. I understand your reluctance to stash a large load of cash. If you'd like a suggestion on a really good way to hide large chunks of cash in your own home, e-mail me and I'll give it to you privately.

-- cody (cody@y2ksurvive.com), September 06, 1999.

FWIW, my guess is yes.

See: http://www.ny.frb.org/pihome/treasdir/treasdir.html

for some details on one way to go about it.


-- Jerry B (skeptic76@erols.com), September 06, 1999.

If a bump in the road, a "3-day storm" or a bit more, T-bills should be fine.

Too much more than that, and the whole global debt structure collapses. It is a miracle it lasted this long. 10 cents on the dollar anyone?

-- Anonymous99 (Anonymous99@Anonymous99.xxx), September 06, 1999.

I agree with Jerry--go Treasury Direct. There are no guarantees, but we are talking about odds. If the government holds, you will probably get the money eventually. I have 10-year inflation adjusted bills and there is another auction of such in October.

-- Mara Wayne (MaraWayne@aol.com), September 06, 1999.

Feller Because of the uncertainty of what will occur on the other side of y2k I think it would be wise not to but all your hard earned savings in any one thing. A portion to t-bills, a portion to Tax lien certificates, and portion for cheap undeveloped real estate, and 10 k cash stashed for the possibility that were more resilent than the evidence points to. then you should place a portion of you finances to surviving the possibility of the worst world wide economic collapse this century has seen. Gold coins for two reasons, 1 not to lose your assets in case we are taken over by another super power during the crisis and US currency becomes worthless, # 2 Gold and silver coins can provide you and your family safe passage thru war zone civil unrest areas. The next place I would invest in is renting a cabin in the sticks somewhere for the turn over for 6 months and fully stocking it. This would be a life insurance policy if you had to leave the cities in a hurry because of y2k caused environmental health hazards. Good luck and god bless what ever you do.

-- y2k aware mike (y2k aware mike @ conservation . com), September 06, 1999.

Feller your question is timely.

What would you guys do with a profit sharing plan worth 500k, and cashing it in meant losing 30-40% of it's value?

-- Confused with all this (worried@home.com), September 06, 1999.

My folks have $51,000 grand in the market. I'm pushing them to move it in a way to meet these criteria. #1. No tax penalty. (They've already taken alot out this year; any more and they might as well burn it.) #2. Principle can't be lost short of collapse of USA government. #3. Able to liquidate next year.

Inflation still a big risk, but those 3 criteria ease most of my anxiety. T-Bills seem the best bet to me.

-- Gus (y2kk@usa.net), September 06, 1999.

I agree that TBills are about the best bet .... but I wonder....If the banks are *gone*, how will we cash them in?

Also, since the only way I know of buying TBills is through the investment brokerage, and I end up with nothing but a *statement*....no actual BILL in my possession.....what *proof* of ownership do I have?

I hope this isn't a dumb question.....it's something I've been trying to figure out.

-- Sheila (sross@bconnex.net), September 06, 1999.

Shelia, your question is not at all dumb. It just underscores that ANYTHING other than cash, or a self-validating asset that you have physical possession of such as gold and silver, is a PROMISE TO PAY. As such, it is contingent on conditions that we take for granted TODAY but we cannot necessarily rely on in less than four months.

By the way, do you mudwrestle?

-- King of Spain (madrid@aol.com), September 06, 1999.

Thanks King....that's more or less what I thought.

As for the mud wrestling.......living in the country I wrestle mud rather frequently. Does that count? :)

-- Sheila (sross@bconnex.net), September 06, 1999.

Just a thought -- U.S. currency and debt instruments are held in enormous amounts throughout the world. Devaluing the currency and/or defaulting on the instruments would likely bankrupt whatever country took over the U.S. and provoke a deal of hostility from other countries.

-- Tom Carey (tomcarey@mindspring.com), September 06, 1999.

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