Warning: Get Your Money Out: “All Legal Bank Deposit Protections Are Now Officially Gone”

Former money manager Ann Barnhardt, who in November of 2011 made the decision to cease operations of her brokerage firm and return funds to her customers citing “systemic” problems within the entire financial industry, has issued a new warning about the stability of US banks and the safety of individual deposit accounts.

The warning, stemming from a recent federal appeals court ruling surrounding customer funds lost during the 2007 collapse of Chicago futures broker Sentinel, indicates that individuals who lose deposited funds because a financial institution improperly manages that money, even if those funds are supposed to be “segregated” from other operations of the firm, are essentially left with no recourse if the firm goes belly-up. According to the court, a misallocation of those customer funds, “is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud’ its customers.”

The implications of the ruling, according to Barnhardt, will affect the monies of all private individuals who have seen their deposit accounts wiped out in the collapse of firms like John Corzine’s MF Global and put all deposit account holders in the country at risk should their bank be faced with a financial windstorm:

The NFA in collusion with the banksters, government and judiciary have achieved their goal. The entire concept of “customer segregated funds” is officially, completely, legally dead.

Guys, it is OVER. I know that many of you are still cowering in normalcy bias, unable to deal with reality, unable to face the world as it is, but you have GOT to snap out of it. The marketplace is DESTROYED. You CANNOT be in these markets. All legal protections are now officially gone.

Read the rest at SHTFplan.com .

You should not plan for just one possibility.

I'm rather curious what everyone thinks is going to be of value if the whole thing collapses?

Anyhow, hope for the best, plan for the worst.

In europe and Greece in particular they started using older Greek money and reset the barter points. I suspect it will be the same here.
While I doubt they will be wanting to take any FRN they will have in the back of their minds that someday when the banks get back up they will need FRN to pay their loans and such so they will take them.
I suspect that 1s 5s and 10s will be used without a problem. The 20's will be hard to cash and you will probably find yourself leaving a lot of change in the transactions.
Junk silver coins before 1964 probably will pull best trades.

A fresh start. Where all would have a chance to determine whether they as the individual or as a group.Failed or sucseeded.Back to the way in which made america strong. Either you/or as a group provided for yourself/family or you didn't.
In essence thoughs who chose not to earn there keep die off. No more others providing for the ones who are lazy.
IE For thoughs who have eyes to see and ears to hear.

90% of the law is physical possession, where are your possessions ?

Roger that, words of wisdom right there.

Check out farm and construction equipment. Dirt cheap during a collapse, but guarantees you work in the midst of a depression, and then makes you real money during an economic recovery.

I don't make enough to invest that way, but I buy tools on a much smaller scale that still pays off with me being able to get jobs that I otherwise either would not be able to do, or would look half amateur on.

Farm equipment, auto shop equipment, construction equipment, shop inventory, all winning plays right now when shuffling paper does not cut it.

Just yesterday I met some Ukrainian people who got a small auto repair shop going. Pretty clean place and they are set up to do ONLY oil changes and brakes, not much else. The maximum time any car spends on their lift is an hour and that's for the brake jobs. Oil changes are 10 to 15 minutes. I know another guy, former auto shop repairman who got smart and put a $2500 lift in his personal garage at the house. He figures he pulls around $2500 per month part time without ever leaving his house.

Money in the bank at a pitance of interest rate vs investing in your ability to be paid for work no matter what, make the ability to work investment and just adjust your prices according to the economy. You will always eat and most likely bring home enough to fed the family, no matter what. Networking or doubling up households if it gets really tight guarantees survival if not some ongoing success.

Gerald Celente podcast on Lew Rockwell today talking about preparing for the worst and touching on why to get your money out.

Link

Warnings That A Massive Stock Market Crash Is Imminent


In the financial world, the month of October is synonymous with stock market crashes. So will a massive stock market crash happen this year? You never know. The truth is that our financial system is even more vulnerable than it was back in 2008, and financial experts such as Doug Short, Peter Schiff, Robert Wiedemer and Harry Dent are all warning that the next crash is rapidly approaching. We are living in the greatest debt bubble in the history of the world and Wall Street has been transformed into a giant casino that is based on a massive web of debt, risk and leverage. When that web breaks we are going to see a stock market crash that is going to make 2008 look like a Sunday picnic. Yes, the Federal Reserve has tried to prevent any problems from erupting in the financial markets by initiating another round of quantitative easing, but 40 billion dollars a month will not be nearly enough to stop the massive collapse that is coming. This will be explained in detail toward the end of the article. Hopefully we will get through October (and the rest of this year) without seeing a stock market collapse, but without a doubt one is coming at some point. Those on the wrong end of the coming crash are going to be absolutely wiped out.

A lot of people focus on the month of October because of the history of stock market crashes in this month. This history was detailed in a recent USA Today article....

When it comes to wealth suddenly disappearing, October can be diabolically frightful. The stock market crash of 1929 that led to the Great Depression occurred in October. So did the 22.6% plunge suffered by the Dow Jones industrial average in 1987 on "Black Monday."

The scariest 19-day span during the 2008 financial crisis also went down in October, when the Dow plunged 2,675 points after investors fearing a financial collapse went on a panic-driven stock-selling spree that resulted in five of the 10 biggest daily point drops in the iconic Dow's 123-year history.

So what will we see this year?

Only time will tell.

If a stock market crash does not happen this month or by the end of this year, that does not mean that the experts that are predicting a stock market crash are wrong.

It just means that they were early.

As I have said so many times, there are thousands upon thousands of moving parts in the global financial system. So that makes it nearly impossible to predict the timing of events with perfect precision. Financial conditions are constantly shifting and changing.

But without a doubt another major financial collapse similar to what happened back in 2008 (or even worse) is on the way. Let's take a look at some of the financial experts that are predicting really bad things for our financial markets in the months ahead....

Doug Short

According to Doug Short, the vice president of research at Advisor Perspectives, the stock market is somewhere between 33% and 51% overvalued at this point. In a recent article he offered the following evidence to support his position....

● The Crestmont Research P/E Ratio (more)

● The cyclical P/E ratio using the trailing 10-year earnings as the divisor (more)

● The Q Ratio, which is the total price of the market divided by its replacement cost (more)

● The relationship of the S&P Composite price to a regression trendline (more)

Peter Schiff

Peter Schiff, the CEO of Euro Pacific Capital, has been one of the leading voices in the financial community warning people about the crisis that is coming.

During a recent interview with Fox Business, Schiff stated that the massive financial collapse that we witnessed back in 2008 "wasn't the real crash" and he boldly declared that the "real crash is coming".

So is Schiff right?

We shall see.

Robert Wiedemer

Economist Robert Wiedemer warned people what was coming before the crash of 2008, and now he is warning that what is coming next is going to be even worse....

"The data is clear, 50% unemployment, a 90% stock market drop, and 100% annual inflation . . . starting in 2012."

Harry Dent

Financial author Harry Dent believes that the stock market could fall by as much as 60 percent in the coming months. He is convinced that stocks are hugely overvalued right now....

"We have the greatest debt bubble in history. We will see a worldwide downturn. And when you are in this type of recessionary environment stocks should be trading at five to seven times earnings."

So are these guys right?

We shall see.

But I do find it interesting that some of the biggest names in the financial world are currently making moves as if they also believe that a massive financial crisis is coming.

For example, as I have written about previously, George Soros has dumped all of his holdings in banking giants JP Morgan, Citigroup and Goldman Sachs.

Infamous billionaire hedge fund manager John Paulson, the man who made somewhere around 20 billion dollars betting against the U.S. housing market during the last financial crisis, is making massive bets against the euro right now.

So where are these financial titans putting their money?

According to the Telegraph, both of these men are pouring enormous amounts of money into gold....

There was also news last week in an SEC filing that both George Soros and John Paulson had increased their investment in SPDR Gold Trust, the world’s largest publicly traded physical gold exchange traded fund (ETF).

Mr Soros upped his stake in the ETF to 884,400 shares from 319,550 and Mr Paulson bought 4.53m shares, bringing his stake to 21.3m.

At the current price of about $156 a share, these are new investments of about $88m of Mr Soros’ cash and more than $700m from Mr Paulson’s funds. These are significant positions.

So why would they do this?

Why would they pour millions upon millions of dollars into gold?

Well, it would make perfect sense to put so much money into gold if a massive financial crisis was coming.

So is the next financial crisis imminent?

We will see.

Most "financial analysts" that appear in the mainstream media would laugh at the notion that a stock market crash is imminent.

Most of them would insist that everything is going to be perfectly fine for the foreseeable future.

In fact, most of them are convinced that quantitative easing is going to cause stocks to go even higher.

After all, isn't quantitative easing supposed to be good for stocks?

Didn't I write an article just last month that detailed how quantitative easing drives up stock prices?

Yes I did.

So how can I be writing now about the possibility of a stock market crash?

Aren't I contradicting myself?

Not at all.

Let me explain.

The first two rounds of quantitative easing did indeed drive up stock prices. The same thing will happen under QE3, unless the effects of QE3 are overwhelmed by a major crisis.

For example, if we were to see a total collapse of the derivatives market it would render QE3 totally meaningless.

Estimates of the notional value of the worldwide derivatives market range from 600 trillion dollars all the way up to 1.5 quadrillion dollars. Nobody knows for sure how large the market for derivatives is, but everyone agrees that it is absolutely massive.

When we are talking about amounts that large, the $40 billion being pumped into the financial system each month by the Federal Reserve during QE3 would essentially be the equivalent of spitting into Niagara Falls. It would make no difference at all.

Most Americans do not understand what "derivatives" are, so they kind of tune out when people start talking about them.

But they are very important to understand.

Essentially, derivatives are "side bets". When you buy a derivative, you are not investing in anything. You are just gambling that something will or will not happen.

I explained this more completely in a previous article entitled "The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System"....

A derivative has no underlying value of its own. A derivative is essentially a side bet. Usually these side bets are highly leveraged.

At this point, making side bets has totally gotten out of control in the financial world. Side bets are being made on just about anything you can possibly imagine, and the major Wall Street banks are making a ton of money from it. This system is almost entirely unregulated and it is totally dominated by the big international banks.

Over the past couple of decades, the derivatives market has multiplied in size. Everything is going to be fine as long as the system stays in balance. But once it gets out of balance we could witness a string of financial crashes that no government on earth will be able to fix.

Five very large U.S. banks (including Goldman Sachs, JP Morgan and Bank of America) have combined exposure to derivatives in excess of 250 trillion dollars.

Keep in mind that U.S. GDP for 2011 was only about 15 trillion dollars.

So we are talking about an amount of money that is almost inconceivable.

That is why I cannot talk about derivatives enough. In fact, I apologize to my readers for not writing about them more.

If you want to understand the coming financial collapse, one of the keys is to understand derivatives. Our entire financial system has been transformed into a giant casino, and at some point all of this gambling is going to cause a horrible crash.

Do you remember the billions of dollars that JP Morgan announced that they lost a while back? Well, that was caused by derivatives trades gone bad. In fact, they are still not totally out of those trades and they are going to end up losing a whole lot more money than they originally anticipated.

Sadly, that was just the tip of the iceberg. Much, much worse is coming. When you hear of a major "derivatives crisis" in the news, you better run for cover because it is likely that the entire house of cards is about to start falling.

And don't get too caught up in the exact timing of predictions.

If a stock market crash does not happen this month, don't think that the storm has passed.

A major financial crisis is coming. It might not happen this week, this month or even this year, but without a doubt it is approaching.

And when it arrives it is going to be immensely painful and it is going to change all of our lives.

I hope you are ready for that.

A Massive Wealth Destruction Is Coming As Paper U.S. Currency Is Rapidly Becoming Worthless And People May Lose Up To 50 Percent Of Their Total Wealth!!

http://investmentwatchblog.com/high...-up-to-50-percent-of-their-total-wealth/

People Are Flipping Out: California Is On The Brink Of Collapse And The Panic Is Quickly Spreading Throughout The Nation! Will It Be The Catalyst Of An Impending Market Crash?

http://investmentwatchblog.com/peop...e-catalyst-of-an-impending-market-crash/

Unsustainable
http://www.prisonplanet.com/unsustainable.html