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What An American Bank Run Would Look Like

Tyler Durden's picture



Physical dollars







But wait, there's more.


But wait, there's more.



  • GSE Liabilities: $6,577.8 billion
  • Agency Mortgage Pools: $1,166.3 billion
  • Asset-backed securities Issues: $2,280.6 billion
  • Securities Loaned by Funding Corporations: $709.0 billion
  • Total Outstanding Open Market Paper: $1,131.2 billion


But wait, there's more.



Summing it all up






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Mon, 07/11/2011 - 00:47 | 1442674 baby_BLYTHE
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Can't wait.




Mon, 07/11/2011 - 01:15 | 1442734 WhiskeyTangoFoxtrot
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Mon, 07/11/2011 - 02:55 | 1442837 Vic Vinegar
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Mon, 07/11/2011 - 03:55 | 1442852 Guy Fawkes Mulder
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Glad to see ZH talking about Bank Runs.

They really do mean martial law at this point.


Get out of the Ponzi and stay out.



Mon, 07/11/2011 - 04:51 | 1442889 Weisbrot
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Looks like government corruption & inefficiencies will screw us every time





Mon, 07/11/2011 - 08:03 | 1443070 66Sexy
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Or, silver if you like.

Like trading places: "Your debit card, please".


Wake up, check your accoutns: $0.



Mon, 07/11/2011 - 09:33 | 1443362 fallout11
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Mon, 07/11/2011 - 10:40 | 1443640 knowless
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Mon, 07/11/2011 - 16:29 | 1445272 XitSam
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Mon, 07/11/2011 - 10:59 | 1443758 mickeyman
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Save in nickels.

Mon, 07/11/2011 - 08:18 | 1443102 duo
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Mon, 07/11/2011 - 05:49 | 1442921 Yen Cross
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Mon, 07/11/2011 - 10:13 | 1443472 Nacho.Libre
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Mon, 07/11/2011 - 00:41 | 1442675 phungus_mungus
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What a bank run in the US would look like?

Mon, 07/11/2011 - 02:38 | 1442824 Tense INDIAN
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Mon, 07/11/2011 - 05:04 | 1442891 Sudden Debt
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And then real hyperinflation kicks in.




Mon, 07/11/2011 - 06:04 | 1442935 brodix
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Mon, 07/11/2011 - 07:14 | 1442985 Sudden Debt
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Mon, 07/11/2011 - 06:32 | 1442957 Yen Cross
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 +1 YEN

Mon, 07/11/2011 - 08:14 | 1443093 css1971
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Ding, we have a winner.


Y'know, I bet they already have the notes printed.


Mon, 07/11/2011 - 08:32 | 1443132 WmMcK
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$500: William McKinley
$1,000: Grover Cleveland
$5,000: James Madison
$10,000: Salmon P. Chase
$100,000: Woodrow Wilson


Mon, 07/11/2011 - 08:52 | 1443206 White.Star.Line
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Not that it really makes a difference.
Hyperinflation from too much money, or collapse from having none.

End result the same....

Mon, 07/11/2011 - 00:46 | 1442680 Bansters-in-my-...
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Nice joke.

Mon, 07/11/2011 - 00:50 | 1442688 zorba THE GREEK
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Mon, 07/11/2011 - 00:52 | 1442693 Tyler Durden
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Mon, 07/11/2011 - 01:02 | 1442704 Spitzer
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Mon, 07/11/2011 - 01:12 | 1442725 random shots
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Mon, 07/11/2011 - 01:19 | 1442748 Spitzer
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You know nothing about basic economics.

Mon, 07/11/2011 - 01:29 | 1442757 TruthInSunshine
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by random shots
on Mon, 07/11/2011 - 01:12




- Author unknown






Mon, 07/11/2011 - 09:30 | 1443354 1100-TACTICAL-12
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Mon, 07/11/2011 - 10:58 | 1443744 mickeyman
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Mon, 07/11/2011 - 18:07 | 1445598 Meatier Shower
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Mon, 07/11/2011 - 06:11 | 1442943 Pondmaster
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Mon, 07/11/2011 - 07:49 | 1443043 flacorps
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Mon, 07/11/2011 - 08:35 | 1443143 Calmyourself
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Mon, 07/11/2011 - 12:36 | 1444265 sasebo
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Mon, 07/11/2011 - 01:20 | 1442733 narnia
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bank holidays.  that's what would happen.  



Mon, 07/11/2011 - 09:11 | 1443276 UgglyBetty
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Mon, 07/11/2011 - 06:24 | 1442908 cranky-old-geezer
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Mon, 07/11/2011 - 06:34 | 1442951 Green Leader
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Mon, 07/11/2011 - 07:36 | 1443013 Yen Cross
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 You are kidding? Green and red?

Mon, 07/11/2011 - 08:59 | 1443096 TruthInSunshine
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by Green Leader
on Mon, 07/11/2011 - 06:34






You see clearly.







Mon, 07/11/2011 - 17:14 | 1445438 Green Leader
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Thu, 07/14/2011 - 07:21 | 1455352 Henry Chinaski
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Thu, 07/14/2011 - 09:19 | 1455631 fallout11
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Thu, 07/14/2011 - 09:32 | 1455688 fallout11
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Duplicate post, sorry

Mon, 07/11/2011 - 11:42 | 1444051 Bob Paulson
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Domestic oil nationalized? Not in our lifetime.

Mon, 07/11/2011 - 12:31 | 1444246 sasebo
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The treasury will what? Who's that, Geithner? What kind of meaningless crap is that? 

Mon, 07/11/2011 - 00:51 | 1442690 DoChenRollingBearing
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The Bearing´s advice:

ALWAYS have six months worth of FRNs stashed away (or as near that as possible) AFTER you have accumulated whatever gold you are comfortable with.

Physical long green $ / FRNs are a part of Modern Survival Theory (MST, did I come up with that?), you will have to go to my blog for details.  Want to do that, send me a gmail at my name, as my blog is in my real name.  Tell me you will behave, some 170 ZH-ers can´t be wrong.  More blog articles after July 15 when I return from Peru.

Beat the rush!  Pull FRNs now!  Buy gold now!  Don´t forget OPSEC (buying guns & ammo, keeping quiet and food and water)!

Mon, 07/11/2011 - 01:17 | 1442738 RafterManFMJ
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I agree with you and would like to meet for lunch close to your fortress or pillbox to discuss where I should hide my six months of FRNs and gold.  Come alone, and tell no one of your plans.

Mon, 07/11/2011 - 04:07 | 1442862 Harlequin001
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ok, sounds like a plan...

and of course, I'll come unarmed...

Mon, 07/11/2011 - 07:51 | 1443046 Smiddywesson
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PMs and guns?

No way man. You need trade items for the apocalypse. Think Dark Ages. When the lights go out, people will reach for PPs, physical porn. Ditto for booze and smokes.

I have what it takes to recruit an army. I will rule the world and you will work for me when my army of reeling, wheezing, pervs gobble up the adjoining survivors.

Sin Army Rules

Mon, 07/11/2011 - 09:41 | 1443387 fallout11
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Ask the Germans what value their "physical" marks were, or the Soviets/Russians (3 currency devaluations and replacements in the 1990's alone), or the Argentinans. Physical pre-1997 Thai bhats were not worth any more after 1997 than the electronic ones were.

Mon, 07/11/2011 - 09:54 | 1443430 TruthInSunshine
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While I don't think I could ever be accused of being bullish on U.S. economic activity (an understatement), the biggest problem I have with your argument, which has become far too commonly accepted without robust rebuttal, is that not a single one of those failed currencies enjoyed global reserve status, nor did those nations possess the sole military superpower status the U.S. does today.

As for how things develop longer term, time will tell.

This is the big problem I have with G. Lira. His hyperinflation case rests on a sudden collapse in the confidence of the USD, and he actually draws comparisons between Argentina and the U.S.

Weimar Germany, when Germany was in a mega-Depression as a result of WWI reparations that make our present day (and massive) national debt look manageable?


I don't think he's a fool, but I think those comparisons alone, without emphasis on the fact that it's not exactly easy to redraw a global reserve currency over a 50 year time frame, let alone in an instance, is completely foolish, bordering on insanity.

And without an existing world reserve currency in place and accessible, what provides the medium of exchange globally that's liquid and immediately 'usable?'


Mon, 07/11/2011 - 00:54 | 1442696 Spitzer
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wouldn't need to convert to physical dollars. Virtual ones will empty store shelves just as well as paper ones. Its all about confidence.


Mon, 07/11/2011 - 01:05 | 1442712 RockyRacoon
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We needed someone to state the obvious and you just did.  I hope your insight saves you.

It is all about confidence, and when that is dissipated there will be a bank run of sorts, or actual.   It snowballs.   Your statement was superfluous at best.

Mon, 07/11/2011 - 03:59 | 1442869 Harlequin001
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Never in history have we had a financial bust like this...

with a nationwide system of ATM's...

Spitzer might just be right. When most people have no gold they will find something else to trade, like salt, soap or something that will hold its value against currency if only for a little while. We should not forget that the only thing that lost its value in Wiemar Germany was the Mark, other currency did fine as did investors that held any commodity, not just gold.

We buy gold because it is the ultimate store of value in that you can store a great deal of wealth in a very small place, indefinitely, and it has a value that is global, but other localised systems of barter will emerge and through it all we will have worthless paper dollars and worthless electronic dollars as well, and some people will still have no choice but to accept both of them in ever increasing quantities.

You'll just need a wider screen...

It's difficult to see how paper dollars will become worth more than virtual ones...

Mon, 07/11/2011 - 05:13 | 1442902 jmcadg
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Except if the virtual system stalls. If you can't use debit/credit cards, if atm macines are turned off. Then initially only cash will be accepted, then once that becomes worthless we're into barter territory.

Mon, 07/11/2011 - 07:13 | 1442982 Harlequin001
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I hear what your saying but to me it's like nukes; you can't uninvent them. Whilst the electronic system might fail it is certain that banks and others will run out of paper dollars long before computers do, but that doesn't mean that they will become more valuable, or that your paper dollar will become worth more than my bag of sugar.

So whilst it makes sense to keep some dollars on hand this idea that it should be 10% in cash to me is a bit OTT. I can't see anyway that ATM's will fail once the govt accepts that it has to make good on everyone's electronic claims...

To that I keep my store house full and my money in gold safely stashed overseas...


Mon, 07/11/2011 - 05:27 | 1442907 wandstrasse
wandstrasse's picture Weimar Germany...

but but but Weimar is crisis-proof! 'krisenfest'

Mon, 07/11/2011 - 10:02 | 1443454 mick_richfield
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Es ist ja jetzt krisenfest.

Mon, 07/11/2011 - 01:14 | 1442732 HungrySeagull
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Food Stamps are just swiped once a month.

Suppose the entire Population swipes the credit card to the max seeking delivery of Silver and Gold right frigging this week?

The next problem is logistical. The Fed has several locations around the USA. Each location distributes and takes currency (Bad dollars and issue new dollars) backed by a alterate location sufficently far away to survive a problem.

Payroll, Western Union and associated secondary providers of money/credit such as Pawn Shops which has historically functioned as a banking system long before the US Banking system was chartered back in the 30's Those will also be cleared out.

I don't know exactly how many armored trucks can move at a moment's notice versus how many bank branches in each of the states... the people do know where these buildings that contain cash are.

ATM couriers are next. Once those are stripped bare as locusts strip a field.

Then the service industry on through retail malls will be stripped as the night deposits are intercepted as managers are killed after closing with the little brown bag.

By the end of the week the actual locations of the factories and mints will probably have military deployed in active security.

What happens next is every house, apartment and dwelling will be methodically searched for any remaining cash by the growing hordes who are angry that they cannot get cash.

But before all of that happens, a war will be fought electronically. It is possible to say within the hour the entire electronic holdings of those who deposited US Dollars in any legal form and held as binary in records could be drained. Or deleted.

Anyone left alive and actually seen with a green us dollar will be killed on sight as dogs would fight over meat. The rest will sort of "Disappear the best they can"

In this vision of a mega run, one must ponder this question.

Do you hold physical into the multiplier waiting for the new currency to be issued? or do you sell as to get rid of the dead weight and convert to cash.

What is cash?

I suppose my banking is mostly virtual in the form of auto drafts and incoming direct deposits. The total failure of the 12 or so banks that control the operation of the "Fed Wire" that makes this kind of banking happen will probably render the entire exercise of being a good citizen who pays the bills on time irrevelant.

At some point in time there will again be a money issue. They did when the Continentail Money failed. They did when the various banks across the west had thier own money and all were brought into line with the fed government and ultimately the greenback was brought to war to make payroll.

To use a toll ferry at the end of the Civil War, it will cost you 5 dollars Union or 40 dollars confederate.

Which is it?

Mon, 07/11/2011 - 01:29 | 1442758 Spitzer
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Mon, 07/11/2011 - 01:29 | 1442761 Spitzer
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There will be no demand for physical cash. Why do you think computers will stop working ? Is this Y2K all over again ?

Physical US cash will go the same way every other basket case economies physical cash. Simply a peasant medium of exchange that nobody stores value in. The Jamaican dollar for example.



Mon, 07/11/2011 - 09:23 | 1443320 Max Hunter
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Not so sure about this.  >95% of the "cash" is digital.  If the digital cash goes boom, the physical will still be good to have for the immediate weeks/months after a bank run.. This is until they get all of the trillions in printed form and distributed.. Then, (if not sooner) silver and gold coins will make a few people very wealthy..

Mon, 07/11/2011 - 10:15 | 1443504 mick_richfield
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The run will begin with digital money going dark, because it can be turned off from central locations.  The ATMs are dark.  And the cashiers say "I don't know what's wrong with all the credit card machines!"

The run is not initiated by individuals.  It is precipitated from central locations.

Fri, 07/15/2011 - 17:10 | 1460946 Carl
Carl's picture


I applaud your blind faith and trust in the electronic currency system that is based upon a bank's promise to pay FRNs upon demand.  Keep your debit card handy and good luck...

Mon, 07/11/2011 - 01:18 | 1442741 FeralSerf
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Yes, there are ATM cards.

Mon, 07/11/2011 - 01:35 | 1442768 oldman
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You are right on the money with this.

It will be the interfacew between the virtual reality and the old reality. Been waiting for theis confrontation for decades. I don't have an opinion on it, however; I came back to the US just to see what happens.

I believe that I will have a few dollars, francs, and euros, just in case you have overestimated the good will of human beings-----zerohedge includes physical fiat.

I want to be in a position to do nothing.

Mon, 07/11/2011 - 07:24 | 1442996 Counterfiat
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Thank you for your input Spitzer

Mon, 07/11/2011 - 07:53 | 1443050 Smiddywesson
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All kidding aside, the shelves in Japan were empty in 3 days. If you don't have food on hand, you have nothing. That would still be true if the USD was rock solid.

Mon, 07/11/2011 - 00:58 | 1442703 vainamoinen
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and this is precisely why some of us keep a "substantial" amount of "green paper" (say about 2 years living expenses - at existing prices) close at hand.


It is not an investment and does not replace PM's - just another (hopefully)insurance policy in the event that things get a little too squirrely - - -

i.e. - - - defationary

Mon, 07/11/2011 - 01:18 | 1442740 bakken
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Amen!  Holding actual physical cash these days loses almost nothing as most ROR are close to zilch.

Cash, like PM needs guarded though.  Still, I have 10% in real, physical US$.

Mon, 07/11/2011 - 04:05 | 1442872 Harlequin001
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so why don't you just spend your physical (or virtual for that matter) dollars now and buy a store room full of canned food?

Mon, 07/11/2011 - 07:10 | 1442979 equity_momo
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He probably has that too.   You dont want to get into too much of a bunker mentality though. Being able to move town/state/country is going to be an important survival tool. So storing 2 years worth of food and water in 1 location isn't necessarily smart. Another reason not to own a home - it just ties you down.

Mon, 07/11/2011 - 08:03 | 1443072 Smiddywesson
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I disagree

In a SHTF scenario, the roads will not be passable in the first few days. Heck, they are not passable now on holiday weekends. Worse, they will be unsafe in a week.

You cannot possibly carry enough food to see you through this. It could take months to put things in order. You just have to put all your eggs in one basket and hunker down, not run around in cammo.

The big enemy is starvation, not zombies, harriers, or looters. Looting is a secondary consideration. Of course, if you move around and look like you have food, looters will be a problem.

Starvation isn't a possibility, it is a given. When the intricate dance that feeds 380 million Americans crowded into concentrated areas far removed from farms, people will begin to starve in one week.

Food is the ultimate problem because our society is too efficient and fragile. Nothing can go wrong under these conditions without a extreme result.

Mon, 07/11/2011 - 08:45 | 1443180 Oh regional Indian
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Absolutely smiddy.

just in time delivery and food and many millions of humans dependent on it is a tinder box indeed.

In India, what are called Farmer's markets are daily, pervasive and usually excellent. India is one giant, teemeing, constant maretplace. But int he cities, it's changing fast.

Shiny, neon lit mega-stores and waxed apples. Very bad sign, especially in such an in-efficient country.


Mon, 07/11/2011 - 13:01 | 1444357 equity_momo
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Fair points. I shall re-evaluate - im currently mobile and liquid looking to put roots down.

Mon, 07/11/2011 - 15:58 | 1445143 Geoff-UK
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Good points all, except for that last.  Food isn't nearly as critical as clean water.  And if the city water shuts down because the operators decided to stay home with their families, anyone without stored water dies.  In, like, a week.


Water first.  Then food.  Then ammo.  THEN PMs and maybe some FRNs.

Mon, 07/11/2011 - 01:20 | 1442744 HungrySeagull
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There was a television special that gripped the Nation during the cold war when I was a young adult.

A family fled the city in the station wagon (Minivans of the day) and made it far enough into the mountains to escape the nuclear hellstorm sure to fall. They stopped to get gas at a really tiny place among the trees.

Attendant: Howdy!

Car: Fill up please

Attendant: 10 dollars per gallon please.



Keep in mind gasoline was around 95 cents to the gallon on up to 1.10 at the time.

Mon, 07/11/2011 - 01:37 | 1442772 azusgm
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What year was that? Gas in Texas ran ~$0.30/gal until Carter.

Mon, 07/11/2011 - 01:46 | 1442786 knavechild
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"OMFG" goes as far back as the cold war, eh?

Mon, 07/11/2011 - 01:51 | 1442792 HungrySeagull
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It was "The Day After" or something like that.

OMFG is simply a abbrevation in netspeak the resulting diaglogue.

I was on the east coast and lost the .29 cent gasoline after 1969

Mon, 07/11/2011 - 10:49 | 1443699 cgbspender
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Sounds like Panic In Year Zero!!


Mon, 07/11/2011 - 10:20 | 1443526 mick_richfield
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If it all happens, your cash will work for, at most, 24-48 hours longer than your plastic.

You would do better to find ways of stocking up on the stuff that you want to buy with your cash.  I.e. go all the way to the bottom of the abstraction pyramid.   Water, then food, then heat (depending on where you live). 

If you live in a place that is not livable without electricity  ( Phoenix! ) personally -- I would say to leave that place in the clothes you are now wearing.

Mon, 07/11/2011 - 01:09 | 1442716 snowball777
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Fuck paper. Wire transfer to APMEx. Done.

Mon, 07/11/2011 - 01:19 | 1442743 RafterManFMJ
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Wire transfer to gainsville coins. Better prices.

Mon, 07/11/2011 - 01:22 | 1442752 Seasmoke
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Mon, 07/11/2011 - 01:40 | 1442778 knavechild
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How long is it taking to get deilvery of coins ordered on Gainesville, provided they have em in stock at the time you order?  Last time I tried it took a month and I almost chewed off my hand in anticipation.

Mon, 07/11/2011 - 02:30 | 1442819 HungrySeagull
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Consider that further restrictions on delivery may happen and many will willingly chew the paw off to get out of the liquidty bear trap they got caught in.

Mon, 07/11/2011 - 01:39 | 1442767 knavechild
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One day these globalist fuckers are gonna come on television and tell everyone that currecy, gold, silver, etc are all illegal, and that everyone gets the same amount of carbon credits that they can use toward food and energy consumption. Bet on it.

Mon, 07/11/2011 - 04:03 | 1442870 Harlequin001
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and it won't make any difference at all to gold held offshore...

and especially if it can be sold offshore, and the money repatriated at whatever value through an ATM.

Mon, 07/11/2011 - 05:22 | 1442906 jmcadg
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Would that be illegal for governments too? Why are they stocking up? Holders of genuine physical PMs are tiny in the scheme of things. Even more so once you strip out the tungsten ;)

Mon, 07/11/2011 - 11:27 | 1443968 Smiddywesson
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I don't think this time gold will be made illegal. Last time, they had to somehow get gold out of the hands of the populace because money was made of gold. This time, almost all the gold is in the hands of the wealthy. They don't need to make it illegal to hold, they already hold it.

Mon, 07/11/2011 - 06:08 | 1442940 wandstrasse
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...these globalist fuckers are gonna come on television and tell everyone that currecy, gold, silver, etc are all illegal...

alongside with restrictions to withdraw / use money... 'transitory' orders will be issued, like: only xyz $ per month, and only for daily consumption etc, real estate or investment goods purchases have to approved by xyz. When a bank run is imminent, such orders will prevent the said bank run.

Mon, 07/11/2011 - 01:13 | 1442726 Nate H
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30 trillion only?

what about stocks and bonds held that can be converted to cash electronically? If someone sells their corporate or treasury bonds and gets $1 mil in their brokerage account, that adds to the $30 trillion, no?

Mon, 07/11/2011 - 01:28 | 1442759 Tyler Durden
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This post looks only at money stock equivalents in various levels of abstraction, and their relationship to the top of the money claims pyramid. No asset transposition was assumed as in the scenario presented above, it is highly likely that the dollar value of all assets would go bidless, as everyone scrambles to procure dollars in lieu of dollar equivalency.

Mon, 07/11/2011 - 02:37 | 1442822 pitz
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Since the physical cash supply couldn't satisfy such a run, wouldn't they go for the next best thing, and that is, alternative currencies issued by non-government issuers, and not denominated in terms of government-backed denominations,  ie: stocks? 

Dollars and cash becoming so so 2008/2009, ie: old fashioned. 

Mon, 07/11/2011 - 01:14 | 1442727 Flatchestynerdette
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OMG! I come to ZH for a little light reading at 10pm pacific time on Sunday and I'm about to PUUUUUUUUUUUUUUUUUKKKKKKKKKKKEEEEEEEEE.


I'm now sitting here shellshocked - do I run tomorrow to the bank and get the cash from my accounts knowing that they'll take DNA as I have $10,010.50? Wil the bank even have the cash after the weekend as its a monday? If I get mine will anyone else get theirs after me for Monday before a delivery of cash to the bank?


I'm about to hurl.

Mon, 07/11/2011 - 01:17 | 1442739 mt paul
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you might be too late...

Mon, 07/11/2011 - 01:24 | 1442754 FeralSerf
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They might not give you more than $2,000 a day -- new money laundering rules.

You weren't planning on opening a laundry?   So solly.

Mon, 07/11/2011 - 01:58 | 1442801 HungrySeagull
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Cost you 100 dollars to generate 5 wires.

5 wires to 5 banks.

Visit each one a few hours later. All done.

Mon, 07/11/2011 - 05:25 | 1442909 jmcadg
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+1. Then go and get some gold and silver coins, and some food etc. Why wait for the stampede.

Mon, 07/11/2011 - 01:24 | 1442755 Nate H
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if you really think about it - the whole picture - you'll come to the uncomfortable but profound conclusion that to really save yourself you have to save everybody (basically).  What good will having 10k be when 90% of people have nothing?  Bank run like described above, with no precautions by govts and trade stops overnight and all the components, supply chains for medicine, food, waste removal, electric utilities stops within days.


Having more green or gold than the next guy will be a Pyrric victory...

Mon, 07/11/2011 - 05:27 | 1442910 jmcadg
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Live in a small town, village, and look after your neighbours. Share your resources, knowledge, skills and build up from the ground.

Mon, 07/11/2011 - 08:50 | 1443202 Nate H
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something like that, but we are so dependent on international trade that your plan needs to run in parallel to some govt mitigation efforts (or at least institutional re food supply chains etc)

Mon, 07/11/2011 - 11:43 | 1444059 Smiddywesson
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In the event that the financial system crashes.

People will still show up to work if they trust their employer's promise to pay. But when that employer is not trusted because it is a big corporation, or their continued existence is in question? That's where your supply chain breaks down.

In the Great Depression, grocers extended credit to known and trusted neighbors. My great grandfather lost his store that way. Even if companies didn't know this, they don't have that type of relationship with their customers.

Mon, 07/11/2011 - 08:09 | 1443085 css1971
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OMG! I come to ZH for a little light reading

Well that's your mistake right there.

Mon, 07/11/2011 - 10:25 | 1443552 mick_richfield
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OMG! I come to ZH for a little light reading

Um, dude.  This is the light reading! 


Mon, 07/11/2011 - 01:14 | 1442730 gdogus erectus
gdogus erectus's picture

He forgot about the $400 billion or so of actual printed FRN's tied up in drug trafficking and laundering running around through the drug cartels, CIA, Wells Fargo and B of A.  You'll have to back that out of the $967 billion because the 2.whatever is a bullshit number and we know they aren't going to step in with that cash in case of a bank run.

Mon, 07/11/2011 - 01:14 | 1442731 RafterManFMJ
RafterManFMJ's picture

I withdrew all of my money from my 401k and bought beanie babbies.  I will be comfortable in my retirement.

Mon, 07/11/2011 - 02:03 | 1442806 pitz
pitz's picture

You may very well preserve value better than the elderly motherfuckers who leave it all in CDs, that's for sure.

Mon, 07/11/2011 - 02:49 | 1442832 oldman
oldman's picture

The mothers of the elderly are dead---leave'em be please.

And besides, most of us have not put money into CD's since 1993 or so----we're old but we are not stupid.

Respectfully---we do nothing

Mon, 07/11/2011 - 09:40 | 1443388 snowball777
snowball777's picture

Only if you turn them into a beanie bag chair.

Mon, 07/11/2011 - 01:15 | 1442735 mt paul
mt paul's picture

good evening

to polish

some gold...

Mon, 07/11/2011 - 01:16 | 1442736 Seasmoke
Seasmoke's picture

under the bed for the past 14 years ......what seems to be the problem

Mon, 07/11/2011 - 01:19 | 1442745 TruthInSunshine
TruthInSunshine's picture

Given that a mere 3% or so of total USD exists in physical form, in circulation, in the U.S. financial system, at any given time, I would expect the price of the particular components necessary for the fabrication of paper USDs to skyrocket (as the race to convert digital dollars into paper ones is undertaken) in the event of a bank run.

Mon, 07/11/2011 - 01:21 | 1442749 bigwavedave
bigwavedave's picture

we are already at "peak print". after the recent debacle of the misprint of the last $100 replacement round there just is not enough time (or perhaps cotton) left to helicopter anything other than MRE's 

Mon, 07/11/2011 - 06:06 | 1442937 Prometheus418
Prometheus418's picture

Don't forget that anyone with a checkbook has the ability to create their own debt notes.

Yes, many places currently do not accept checks, but if the need was dire, a seller could accept them and require the person writing it to "sign" it with a thumb or fingerprint.

Mon, 07/11/2011 - 08:28 | 1443117 Harlequin001
Harlequin001's picture

and he could of course, always cut the thing off if it bounced...

Mon, 07/11/2011 - 16:26 | 1445265 Geoff-UK
Geoff-UK's picture

$10,000 bills.  Prob solved.

Mon, 07/11/2011 - 01:20 | 1442751 What_Me_Worry
What_Me_Worry's picture

Why keep physical dollar bills when you could accumulate millions of nickels?  Still not quite sure how one could go about even doing that.

I also have a ton of Dave and Busters points/tickets, however they are all currently digital.  I will need to convert them into physical at some point.  I'm guessing they will be the new bitcoin.

On a serious note, if there is a bank run and any sort of "bank holiday" is announced then all digital credits become worthless temporarily anyways.  The Fed has the ability to print dollars in any denomination it chooses, correct?  They have already proven they will do whatever it takes to keep liquidity flowing.  If they need to print million dollar bills to prove their point I am guessing they will.  For the good of the country, of course.  

China wants to cash in $1T of its savings, here's your trillion dollar bill with slick willy's face on it.  Good luck getting change for that before its only worth 3 eggs.  Thanks for all the fish!

Mon, 07/11/2011 - 10:30 | 1443588 mick_richfield
mick_richfield's picture


There's a place called Portland Mint that will sell you nickels $300 face or $10,000 face at a pop. 


BTW -- I like how the new nickels have Jefferson's face getting closer and closer.  Pretty soon we'll just be able to see his nose or something.

Mon, 07/11/2011 - 18:47 | 1445729 Meatier Shower
Meatier Shower's picture


Nickels will from then on be called nostrils.

Fri, 07/15/2011 - 18:19 | 1461080 Carl
Carl's picture

Not correct.  The Fed must back each FRN they put into circulation with an asset of equal value to the face value of the note.  If congress took back control of the money supply the Fed must surrender the FRNs as well as the assets they used to back them, and the values must match or the Fed (the banks that comprise the Fed) must continue surrendering assets until they do.  This is the primary reason the Fed will not physically print the government out of its debt and the reason they are working so feverishly to save their system of credit.

Also, the credit that constitutes 98% of the current "money supply" has no legal standing as money; only the debts incurred through its use are legally binding.  The Government only guarantees "money" held in deposit accounts (which is $0.00) through the FDIC, which primarily re-digitizes credited accounts and will only pay out FRNs (which it must Buy at face value from the Fed) as a last resort.


Fri, 07/15/2011 - 18:25 | 1461099 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

Not correct.

Not one single word.

Fri, 07/15/2011 - 18:58 | 1461115 Carl
Carl's picture

never mind

Mon, 07/11/2011 - 01:30 | 1442762 zorba THE GREEK
zorba THE GREEK's picture

 "When the full faith of the U.S. is exhausted" Then paper money with pictures of dead 

 presidents will be worthless and there would be more pressing issues for people to deal with

 other than obtaining Zimbabwai-like currency relics. If necessary, the treasury could just

 issue debit cards like they do for food stamps in place of currency.

Mon, 07/11/2011 - 01:35 | 1442763 dwdollar
dwdollar's picture

My wife works at a credit union.  They barely have enough cash for a regular day of business.  When it's low they order more from the distribution center but it can take two days for delivery.  When there's no more they issue Cashier's Checks.  LOL...  So...  even if you are the first in line during a panic don't expect anything.  Not unless you know someone working there.  You really think those bank / credit union employees are going to selflessly help everyone before themselves?  Keep dreaming.  You'll have to wait for the next delivery, if it comes.

Mon, 07/11/2011 - 01:36 | 1442769 HungrySeagull
HungrySeagull's picture

I try to stay within my Courier's delivery. I have learned his schedule pretty well. It is not  too difficult to go in 20 minutes later and take out whatever it is you want.


But getting it in anything other than 100's and 50's take time because they have to enter the vault and crack a few paper bands.

Mon, 07/11/2011 - 01:42 | 1442780 dwdollar
dwdollar's picture

As far as I know, the vault is a joke at most places.  Not much there.

Mon, 07/11/2011 - 01:54 | 1442797 Dre4dwolf
Dre4dwolf's picture

Thats why people should keep as much cash on hand as possible.


I for one don't like leaving money in the bank, you give the bank a dollar and then you gota fight tooth and nail to get it back... what kind of business is this that they run nowadays.


Mon, 07/11/2011 - 01:32 | 1442765 Milton Waddams
Milton Waddams's picture

As a patriotic American, I decided to donate

Mon, 07/11/2011 - 01:42 | 1442781 narnia
narnia's picture

derivatives are a zero sum game.  

Mon, 07/11/2011 - 11:56 | 1444123 Bob Paulson
Bob Paulson's picture


Mon, 07/11/2011 - 02:01 | 1442796 AUD
AUD's picture

Isn't this just a rehash of Sandeep Jaitley's article that you published twelve or so months ago?

Incidently, doesn't it also explain why central banks are bailing out their 'clients'? There is no chance that commercial & investment banks can satisfy their dollar (or euro etc) obligations in physical cash, if the banks are left to hang so will the depositors, big & small.

The effect would be nothing short of catastrophic as all bank payments would stop as the value of bank assets fell to zero in a wholesale liquidation, plunging the world into depression.

Mon, 07/11/2011 - 06:37 | 1442961 Yen Cross
Yen Cross's picture

 You caught that eur/gbp move? I respect your input... YEN

Mon, 07/11/2011 - 02:20 | 1442814 Paul Thomason
Paul Thomason's picture

There was a post on here a while back about inciting or being seen to be seen to be contributing to a resultant bank run as illegal.  I know it's not the same thing but the US government seems to operate on some pretty loose intepretations of late.  

We all know they are reading.


Here is the link to well, here;

Mon, 07/11/2011 - 02:39 | 1442823 virgule
virgule's picture

This post is odd.

Appart from telling us that there is a lot more electronic money than paper money, it doesn't tell us why people would want to abandon the convenience of worthless electronic money for the burden of worthless paper money, ie going back to Weimar-style shopping with bags of physical currency?

Does this story imply that somehow paper dollars would be worth more than the electronic dollars, hence pushing everyone to pull out their electronic money?

Or does it imply that the only way to pull out your money from a failing institution would be to carry physical out, and to deposit it with the institution next door?

I'm assuming there is one viable one next door, otherwise it doesn't make much sense to carry physical if there is no institution left.

Or does it? A life with paper dollars but no banks? LOL.

Mon, 07/11/2011 - 02:49 | 1442831 HungrySeagull
HungrySeagull's picture

You may have something here.

Suppose there was no cash necessary? Swipe your cell, have a transmitter on card or some other form. Email the money via Paypal. Whatever.

I have a feeling within a generation a great effort will be made to phase out cash.

Mon, 07/11/2011 - 08:35 | 1443145 Harlequin001
Harlequin001's picture

It is odd. It seems to be telling everyone to hold paper dollars because they will be valuable???

I'll stick to my pm's and well stocked pantry thanks...

Mon, 07/11/2011 - 08:56 | 1443218 cat2
cat2's picture

+1  I think that paper money will likely go worthless with the electronic and will not decouple unless there is some fightclub type breakdown of the computers that store the info.  That is possible, but again I'm not sure if people will honor paper if that is the case.  I think having a true alternative to the dollar is more advised like other currencies or small value commodities to do daily trading like silver or bullets or coffee.

Mon, 07/11/2011 - 16:44 | 1445322 Geoff-UK
Geoff-UK's picture

Trading bullets would be a fool's game in a TEOTWAWKI scenario--you're basically broadcasting that you have so many bullets that you're willing to trade some away.  Not smart.

Fri, 07/15/2011 - 18:32 | 1461110 Carl
Carl's picture

And where do you believe the people will be getting those bags of physical currency?

Mon, 07/11/2011 - 02:44 | 1442825 headless blogger
headless blogger's picture

It's just too bad if there is a bank run. Everyone should have known by now (after 10 years) that you can't wage wars across the planet for free. It'll cost ya.

The military, besides being the Elite's very own attack unit, is just a massive welfare program to keep young guys busy and off the streets. But they tell you they are in it to

protect our freedoms. Last time I checked I don't have as many freedoms as I did

10 years ago.

I would suspect a bank holiday would put a halt to a bank run. By the time

the banks opened up again, a new currency would make its debut


Mon, 07/11/2011 - 02:53 | 1442835 Dre4dwolf
Dre4dwolf's picture

If everyone went to the bank to pull out their money, only like 1 - 3% of the population would recieve anything.

Not a question of if it will happen, simply when? it always happens, FDIC is just a front cover to promote "trust" in the banks.


Like you will ever see a dime from FDIC.... by the time you get your money it will be worthless.
