Friday, July 13, 2012

4.4 billion dollar loss

Way to go J.P. Morgan/Chase, you certainly are the best bank in America. I'm very thankful I closed my account about 6 years ago. If someone at work makes a money mistake, it comes out of their paycheck and/or they are terminated. There can be no excuse for a loss that large, cashiers have to have an accurate drawer at the end of the day. I understand it's not really a loss, it's just figures on paper that don't mean anything until people want to actually pull money out and suddenly it's not there. Trading loss they say... I suppose that makes it ok but in the end we all know who eats that loss.


My bank is right down the street, they know who I am and give dog treats at the drive up even when we don't have the dogs. I can walk in and take care of anything I need without feeling like I'm in a cattle chute. I know it's still a bank, but it's nice to be treated like a neighbor when you go there. We brought bagels for them earlier this year, sometimes being appreciated works both ways.

I wonder if there is really a safe place for money. Unless it's in your hands, it's just numbers on paper or a computer screen. Keeping the money in your hand doesn't mean it won't be worthless at some point, you just get the pleasure of actually holding onto it. If you invest in precious metals you better have the metal and not some certificate, that's the same as having a bank statement. FDIC insured but that's meaningless if there is a run on cash, and at that point cash will be just about worthless anyhow.

Precious metals can't be consumed (well probably just once, until you are full) so all the fantasies about TEOTWAWKI scenarios where people trade silver and gold.... no thanks. If someone wanted to trade, food or ammo sounds like the best way to go. Clothes, shoes, tools, etc. will work as well, those are things people can actually use and actually need. I'm probably the minority with that opinion and it's not because I can't take my cash and turn it into tangible metals. If I have extra beans and someone wants to barter for them, I want something I need.

Most people don't see cash at all. My check is direct deposit, my bills are paid online. I know what I will spend each paycheck and the rest is taken out in cash. I like having cash but it's actually sort of a pain in the ass. Cashiers can't count it back and just lump it into your hand, you have to go into the gas stations and pay in advance for an unknown amount of gas (and trust the clerk), if your bills are not crisp good luck using a self checkout, using cash at many places has you looking suspicious.

I'm heading downstairs to get something from the vending machine. Good thing I have cash.

1 comment:

  1. Largely in agreement on precious metals, that in the end, what you can use to defend yourself and items that you can eat or drink or aid you in that endeavor will be the items that truly matter.

    However after things crackup or collapse, fiat money will work for a period, and precious metals will work for a longer period.

    There will be folks dumb enough to accept such in trade for items that will have true value like such that I mentioned above.