Is An ATM Cash Shortage Coming?

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Mon, 11/08/2010 - 12:37 | 708238 goldmiddelfinger
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Mandy looks quite swell this morning

Mon, 11/08/2010 - 13:09 | 708372 RedwoodTree
RedwoodTree's picture

spot on...

Mon, 11/08/2010 - 13:14 | 708403 66Sexy
66Sexy's picture

this is inflationary. money leaving the banks and entering the markets.

Mon, 11/08/2010 - 13:25 | 708469 RedwoodTree
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and to all you who are junking mandy, fuck you...don't you recognize a good thing when you see it?

Mon, 11/08/2010 - 14:06 | 708702 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Just because she is hot does not make her right. For a great example, we have the Hollywood crowd.

Mon, 11/08/2010 - 14:11 | 708723 RedwoodTree
RedwoodTree's picture

never said she was "right"...only hot.

Mon, 11/08/2010 - 14:13 | 708732 dark pools of soros
dark pools of soros's picture

you trying to kill our last export business?

Mon, 11/08/2010 - 14:29 | 708807 truont
truont's picture

LOL!  Don't take away our infotainment booby babes!

Mon, 11/08/2010 - 12:38 | 708241 TheJiddish
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With Christmas around the corner.....

Mon, 11/08/2010 - 13:28 | 708484 jus_lite_reading
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This may just be the signal I was looking for. I have calculated that the big 12 bank's burn rate should put them in full blown liquidity crisis by the end of December. That being said, I've already closed out all accounts except for one small one to pay the bills in advance of a bank run. FIDC insurance or not, this is something of another animal.

Mon, 11/08/2010 - 13:45 | 708591 espirit
espirit's picture

Don't worry.

More BennieBux on the way shortly.

Mon, 11/08/2010 - 12:40 | 708244 Bananamerican
Bananamerican's picture

that does it...

I'm chartering the 1st Official Bank of Sealy

Mon, 11/08/2010 - 12:53 | 708299 e_goldstein
e_goldstein's picture

will you currency be backed by box springs? ;-)

Mon, 11/08/2010 - 13:14 | 708402 Bananamerican
Bananamerican's picture

you don't wanna know....

Mon, 11/08/2010 - 12:40 | 708245 ZakuKommander
ZakuKommander's picture

Proprietary ATMs, bitchez

Mon, 11/08/2010 - 13:08 | 708361 ZakuKommander
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So by suggesting that banks are limiting cash to non-bank ATM competitors in favor of the banks' proprietary machines I get junked?  LOL!

Mon, 11/08/2010 - 14:16 | 708748 Catullus
Catullus's picture

There was not enough hyperbole for the ZH crowd. You should have said "the mega banks are trying to push proprietary ATMs before the death spiral into the abyss of despare and nothingness".

Yeah. I bet the banks love having some asshole come up once a week asking for $400k a week in 20s, only so he can make most the transaction fee. Fuck that guy, put him out of business and push propietary ATMs so you can make both sides of the transaction fee.

Mon, 11/08/2010 - 14:52 | 708930 fuu
fuu's picture

Most likely you got junked for the bitchez line. The second comment was junked because you were concerned about being junked.

Mon, 11/08/2010 - 18:47 | 709832 New_Meat
New_Meat's picture

And you got junked?  Here's my theory, this is the Fractional Junking System (FJS) where the first guy gets to get junked 4 times, then the second guy gets 2**-1 times, and so on.  Had an idiot who tried to explain Taylor series in Econ many moons ago, couldn't figure it out enough to explain.

So as of 1745 EST, you have one junk.  I'm guessing ... nah

- Ned

Mon, 11/08/2010 - 12:41 | 708248 ZeroPower
ZeroPower's picture

Well, i suppose as long as you go to an actual teller to withdraw your money instead, then this point is moot.

Or drive-thrus. Just remember to leave that motor running, you dont wanna save gas or anything crazy like that!

Mon, 11/08/2010 - 12:45 | 708266 still kicking
still kicking's picture

If the bank locations do not have enough paper cash to give to the ATM's then how will the teller have enough for everyone not going to the ATM anymore?

I would guess this has to do with the crackdown on ATM fees the government did, instead banks will now force you to come in and charge you a teller fee which is not regulated.

Mon, 11/08/2010 - 13:03 | 708340 ZeroPower
ZeroPower's picture

The banks only give a 'decent enough' amount (as determined by their internals) to the different ATMs around town. They of course have more $ in vaults and centrally located branches.

Mon, 11/08/2010 - 13:51 | 708607 tired1
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How about we print our own dollars, like metered postage stamps? Sure would be more convenient.

Mon, 11/08/2010 - 12:42 | 708254 Lets Hang Parliament
Lets Hang Parliament's picture

I bet they are having the same problem with the ATM machine in Dubai that dispenses gold bars...

Mon, 11/08/2010 - 12:43 | 708255 Ripped Chunk
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If true, it should get interesting quickly.

Fed & banks usually have additional cash available in December.

Mon, 11/08/2010 - 12:50 | 708287 hedgeless_horseman
hedgeless_horseman's picture

Some of my employees reprted to me last week that PULSE system ATMs in Houston were shut down at least twice in the last week.

Mon, 11/08/2010 - 12:57 | 708315 hedgeless_horseman
hedgeless_horseman's picture

$1401 AU, too.

Mon, 11/08/2010 - 12:59 | 708324 hedgeless_horseman
hedgeless_horseman's picture

With the Dx up, too.

Mon, 11/08/2010 - 13:07 | 708351 MsCreant
MsCreant's picture

Silver $27.35

Mon, 11/08/2010 - 15:01 | 708969 still kicking
still kicking's picture

At one point today it was up almost a dollar from opening, that's just insane, wish I had bought a lot more at $11.

Mon, 11/08/2010 - 15:58 | 709204 midtowng
midtowng's picture

If true...

It looks like just a rumor to me. I don't see this as a problem to be concerned about unless our foreign creditors shut us off. At that point we enter the "Argentina scenario". But even when that happens I still expect the government to go after the "low-hanging fruit" first - 401k's and IRS's.

Mon, 11/08/2010 - 19:01 | 709874 New_Meat
New_Meat's picture

I like your targeting of the low hanging fruit: IRS's. ;-)  Let's really go after them!

But the 401k/403b (nah, they won't be included)/457s(don't know)--let's see.

That old qwm Teresa Ghilarducci:

"In my new book I propose a practical reform of the private pension system -- a mandated savings program called Guaranteed Retirement Accounts. The federal government subsidizes each account with an annual grant of $600; workers and employers share the rest of the cost equal to 5-percent-of-pay contribution (up to the Social Security cap). The federal government pays a guaranteed 3% rate of return ABOVE inflation , which with Social Security provides, on average, 70 percent of pre-retirement earnings. The $600 refundable tax credit costs nothing if we eliminate most of the tax breaks for 401(k)s and IRAs. We can keep tax breaks for contributions up to $5,000 per year, and lower the grant to $400 per year. I am grateful to the WURF Fellowship at the Labor and Worklife Program at the Harvard Law School and the Rockefeller Foundation for their support."

cf. http://www.nd.edu/~tghilard/

Who be guaranteeing what?

Thank the gods that Waxman won't be able to schedule this qwm (in an affirmative manner, so to speak) in the new house regime.

I work with some Argentines who are extraordinarily competent, underpaid on a world scale, and mighty pi.. ...er... excited about exactly this proposal in action.

- Ned

 

 

 

 

Mon, 11/08/2010 - 12:42 | 708256 Mongo
Mongo's picture

Stand in line for food stamps... debt bitchez!

Mon, 11/08/2010 - 12:44 | 708258 cxl9
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I simply do not believe this story. I suspect the real issue - if there is any kernel of truth here - is either (a) the bank's funds-availability policy; and/or (b) the ATM company's credit line.

Why would there be a "cash shortage" when the banks hold billions in reserves, and anyway the Fed can just print up more on demand?

Mon, 11/08/2010 - 12:46 | 708271 SheepDog-One
SheepDog-One's picture

All those 'billions in reserve' obviously dont actually exist. ust decimal point shifting on a screen. Bitchez.

Mon, 11/08/2010 - 12:48 | 708281 Obama2012
Obama2012's picture

exactly. this is more unsubstantiated rumors from the doom gloomers wanting to poo poo on the good times because they picked the wrong side of a trade. same sky is falling bs heard whole life. get over it

Mon, 11/08/2010 - 13:12 | 708387 Mercury
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Good times?

You must live in D.C.

Mon, 11/08/2010 - 13:31 | 708516 TheDriver
TheDriver's picture

Yes but he's on vacation with the family in India at the moment.

Mon, 11/08/2010 - 14:08 | 708715 minus dog
minus dog's picture

Good times?

 

Where?

Mon, 11/08/2010 - 16:14 | 709280 Rick Masters
Rick Masters's picture

Hey I'm relatively new to this only been following economics and finance since Lehman and the dark days but last year I believed all this doom now I feel duped for believing. The sky doesnt seem to be falling and unlike most ZH i really want things to be better. I feel some here are so political they want a collpase cause of their Obama hatred which isnt a racist hatred as some say but more an ideological one. Anyhoo, have the bears been preaching doom for eternity? Can you give me some examples of hearing it your whol life. BTW, 39 junks. Wow this site has become too polotical and close-minded. Everyone loves CD on this site, as do I, but he preaches open-mindeness and wish people took his advice.

Mon, 11/08/2010 - 18:02 | 709683 Diogenes
Diogenes's picture

The world's economy is big. Like, really gigantically humongous.

Like an ocean liner that takes 20 miles to make a U turn, the world economy does not turn on a dime. It can take years for the inevitable to finally happen especially if everyone is playing lie and deny, extend and pretend.

In any halfway sensible system the whole mess would have been cleaned up years ago. Hundreds of bankers would be in prison, dozens of banks would have gone through bankruptcy and the world would be back on the upward trail with the mortgage mess behind us.

It is really astonishing that they have managed to cover up with a big smile, in spite of the millions on food stamps, living in shanty towns and homeless shelters, or still in a house they have not made a payment on in 2 years.

This does not mean the world is not in trouble. We are watching a slow motion economic Tsunami, a Hurrican Katrina that will take years to play out. The levees busted in 2007 but the government still hasn't taken action and is still playing lie and deny, extend and pretend.

Obama will still be reading off the teleprompter with a shit eating grin, even though the muddy water is up to his ears and a dead body floats by every 2 seconds.

Mon, 11/08/2010 - 13:02 | 708337 samsara
samsara's picture

Why would there be a "cash shortage" when the banks hold billions in reserves, and anyway the Fed can just print up more on demand?

 

Because there AREN'T BILLIONS of PRINTED FRNs,  just digital ones.

Read my post below and the link.   The banks and ATMs have VERY LITTLE physical cash on hand. 

Mon, 11/08/2010 - 16:03 | 709232 cnbcsucks
cnbcsucks's picture

Exactly, it's all electric money.

 

Mon, 11/08/2010 - 19:15 | 709896 New_Meat
New_Meat's picture

And how counter-intuitive/counter-ZH is this?  This theme goes to: paper FRNs are in scarce supply.  We must bid up their value in Corn, AU, Pb, ...

wow.

- Ned

Mon, 11/08/2010 - 13:03 | 708341 holdinmyown
holdinmyown's picture

That's the problem ... they have to physically print mountains of paper.  Since late 2007 Fed base money has increased from $800B to well over $2T and with QE2 is about to head for $3T.  What this means is that the FED is committing to print actual physical FRNotes up to this amount to satisfy demand.  After all the promise of the FED is to exchange actual FRN for your digital USD that you THINK you have in your bank accounts.  So if they want to avoid a real run on the banks they had better start printing and fast.  There may come a time when actual physical notes are worth more than the digital cash that you have in your bank accounts and can only spend by using a debit card.  Merchants will offer a discount for actual physical notes as they will become scarce.  So hoard some dollar bills to make necessary future purchases and hoard gold for longer term savings.

Mon, 11/08/2010 - 13:09 | 708370 -Michelle-
-Michelle-'s picture

Remember also that notes are made of 75% cotton and think of how expensive cotton is getting...

Mon, 11/08/2010 - 13:13 | 708393 holdinmyown
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You are absolutely right Michelle.  I shouldn't have said paper ... my bad ... I should have said T-shirts.

Mon, 11/08/2010 - 13:29 | 708493 Walter_Sobchak
Walter_Sobchak's picture

It's about $30 for a graphic tee at the mall these days.

Mon, 11/08/2010 - 13:14 | 708400 Mad Max
Mad Max's picture

Wouldn't it be ironic if the FRNs really were not worth the PAPER they are printed on...

Wouldn't be the first time in history, but the prior times didn't have happy endings.

Mon, 11/08/2010 - 13:49 | 708615 espirit
espirit's picture

But looking at the inverse...

How many FRN's to make a pair of shorts?

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