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A simple strategy to gain some peace of mind, and at least feel like you are sticking it to the banks.
I like practice, not theory.
Do you feel the same way? Are you concerned about bank runs, or just simply hate today's banks? Want to practice disintermediation, but still need to make purchases online and pay regular bills? Here is a simple strategy to gain some peace of mind, and at least feel like you are sticking it to the banks, in eight easy steps.
- Do not own CDs, nor use a checking or savings account.
- Do ask your employer if they will deduct and pay regular bills such as a mortgage.
- Do have a credit card, preferably issued by the same bank as your employer.
- Do minimize the monthly bills you pay (utilities) and purchases you make with this credit card.
- Do take your paychecks to your employer's bank and cash them.
- Do take some of your cash and pay off your credit card, entirely and timely, while at the bank.
- Do take other checks you may occasionally receive to the maker's bank and cash them.
- Do keep your cash some place safer than a bank (not hard to do) and invest in tangible assets.
Why can you feel good that the bank does not have your money?
- You have peace of mind even though the ECB cut the reserve requirement to 1%.
Think about what the reserve requirement is, and what this means.
- You have peace of mind even though the US banks stopped marking to market.
- You have peace of mind even though ZIRP has destroyed any real return associated with having bank accounts...
I know many people who have closed all bank accounts. Without exception, it has worked well, and provided peace of mind.
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Austin Powers: "That ain't no woman! It's a man, man!" Heh.
"Damn it man, you're talking about my mother!"
"Well, you have to admit, she does look rather mannish."
In theory, theory is just like practice. In practice, it is not. - Ned
[ed, yep, Yogi Berra http://www.brainyquote.com/quotes/quotes/y/yogiberra141506.html]
I sense a rip in the ZH-Kos space time continuum ;-)
You're jumping to conclusions here, nmewn.
When they were shoving keynsian economics down my throat vs. good Iowa corn, I always was amazed about the term "Jump Condition". But also was doing some physics and learned about the "Dirac Delta" during which the physicists had no clue what had gone on during the period without observation. The mathie guys used the delta to cause a step change. They didn't try to explain it, they just observed that it happened.
The economists had no clue, but did these amazing dances to attempt to explain what was going on.
I conclude that nmewn is in a jump condition and we have no clue where he'll arrive next ;-)
- Ned
Physicists use the delta function to model things that happen suddenly, like plucking a string. The approximation is that the string's displacement is infinite in the exact spot where you plucked it, and zero everywhere else. It was created because Gaussian functions with unit volume and zero variance don't exist in nature. Thus, they are perfect for economists.
Correct, I am in jump condition and this zero will be around the fiddy yardline in Tampa tonight. Should be a helluva game, if one is into bread & circuses ;-)
The biggest thing EVERYONE can do to help screw the corrupt TBTF banks is to ALWAYS use cash whenever possible instead of credit cards, and failing that, to use physical checks instead of direct deposit.
I wonder how many of even the "enlightened ones" here on ZeroHedge routinely use credit cards for every little purchase instead of cash? For those who do, YOU are doing nothing but helping screw every American (including yourselves), helping to destroy any last shreds of financial privacy in this country, and directly helping to feed the Beast.
USE CASH!
90% agree. CCs do have a few benefits in practice: they're often easier and faster than cash, especially on the Internet. No account fees + cash back on purchases leads to a higher account balance if statements are paid on time. Stolen cash is worse than a stolen credit card. Also, they make you notice and appreciate places that won't accept credit cards, or charge a premium for credit card transactions rather than cash. Even though I use a credit card, I prefer places where credit cards are not welcome.
100% agree, and if you really need a credit card in order to rent a car (the main reason I have one), reserve a hotel room, buy on the Internet, whatever -- use a prepaid credit card and load only as much cash on the card as you have to.
...yet another commie article. jesus christ did they get boris (from the old country) to write this...? if you want to cause shit to happen in the usa, have english speaking writers.
Not sure I could achieve 41 red arrows for one comment unless I posted photos of my testicles as I dress them up as Ernie and Bert. My testicles are much better looking, by the way. See for yourself... oops... forgot I can't post photos.
WTF? Bad day hannah? HH's English and writing are considerably better than yours. And what exactly do you want to "happen in the usa"? Would you prefer that not just our government but everyone cater to the banks? Sheesh. Presumably with a name like "hannah" you're female, so it should be easy for you to get laid;)
"I am constantly dreaming up ways to keep fiats away from banksters!"
That's funny, I'm constantly dreaming of ways to hit banksters in my Fiat.
Just kidding. Don't even own a car.
The problem with huge TBTF banks, is you can't make enough money to support the infrastructure and oversize expectation of compensation unless you loan shark or go Ponzi.
The solution is breaking them up. The negative cost to society is obvious by now.
Good point, WB7. Another is that two of the original purposes for banks. Return on your money, and return of your money, are no longer so certain.
Another facebook share.
Mr. Banzai -
What is one looking for with regards to #5?
Thanks
Boozer,
While WB7s'#5 should be self explanatory what you would be looking for is the "wet ink"original paperwork you signed @ closing.
Not a copy.
Lack of "wet ink"original on the bankers part is not admissable in court to foreclose on you.
I've heard of isolated instances where homes are awarded to possesor of home due to lack of legal paperwork. This is referred to as "adverse title".
This also is why you should NOT necessarilly do a refi. if bank offers one once in foreclosure as it starts a new chain of title.
Always ask for ORIGINAL closing docs first.
Big problem for banks that sliced/diced Mortgage Backed Securities. NONE of them have the original closing documents.
See also MERS/Robosigning.
#1 see if they have it.
#2 check the endorsements
#3 if they don't have #1 and #2 you may now own your home free and clear (A Lawyer will be required).
Having your lienholder not be able to foreclose is a bit different than having a satisfaction of the mortgage filed or some other type of document terminating the mortgage... just saying.
EVERYONE with a mortgage should definitely do Number 5. At the very least, you're likely to induce them to agree to a refinancing at rock bottom rates.
Hell, yeah! I am constantly dreaming up ways to keep fiats away from banksters!
It's more fun than forking the IRS!
I have not built up to armored car heist. I think they have all the S/Ns of the fiats.
I drove by a construction site near an ATM and saw a front-end loader. I had to drive fast to avoid temptation.
A prepaid credit card is handy to have. Some don't even have fees. I've had a Walmart prepaid credit card for years and it's been great. $3 a month fee though, and $3 fee each time you load it. But very convenient and no issues, and Walmarts are everywhere so it's easy to load up. You can put up to $2500 on it. But there are cheaper ones, easily found with Google.
BTW, at the Walmart desk where you load up, you can buy money order for about 60 cents, and pay utility bills with cash, and other handy stuff.
Is there some important difference between a "prepaid credit card" and a "debit card?"
I advise people to avoid using debit cards if they can pay off a credit card bill every month. The problem with debit cards is the ripple effect that can be caused when the card is compromised. The money disappears from your account and then other transactions that hit your account bounce and fees are accessed. Even if the bank or credit union makes good by crediting your account for the fraudulent transactions and cancels the fees you have still not paid your bills in a timely manner and it can be hard to clear up the BS.
What's a debit card?
"The problem with debit cards is the ripple effect that can be caused when the card is compromised."
Definitely. Most have probably had to deal with that.
Note that by law, banks must allow you the option of setting the account so it can't go be debited to a negative balance.
It's much easier for someone to burn you or gain access to your account if you use debit cards, and your losses are potentially much higher. You have to jump thru a lot more hoops to be reimbursed if you get burned due to debit card fraud (it's very common). And you don't need a bank account to get a prepaid credit card.
Check. Now tell us HH, when will the NIRP go into effect? I am looking forward to having the bank pay me to take out another business loan.
Great advice, hedgeless. As a self-employed schmuck in Merika, I do this shit out of necessity anyway. The company has these relationships. Et por moi? It's "Non, Merci!!" I actually get bored looks for doin' everything with cash. Another benefit; (to my way of thinking) Nobody needs to fucking know what I'm doing with my Benny Bucks.
My only comment is that certain banks now ding you $5 to cash a check written by their customer to you. I ran into this when BoA tried to ding me. I refused. They refused to cash it. In the end a friend "bought" the check off of me and deposited it in their own account, (no fee).
As for my own checking account, I bank with a credit union whose biggest member is an Indian casino. They seem to have no cash-flow issues that I can tell.
I had B of A accounts for fifteen years. Closed them about ten years ago when it was announced that they were handing out credit cards to illegal aliens. Took it to a local bank that was bought immediately by the Chinese. That bank happened to be the same one that my next employer uses.
I have direct deposit and I go in each payday and withdraw all but what I plan to use for online payments. The balance goes into grandma's 'safe'...the mattress. I don't participate in credit cards. I don't want anything but minimum association with a bank. I don't plan on buying any cars... I've got a couple heaps already that just need an engine; so I won't be paying thousands in interest. I continue to pay my house off as fast as possible to minimize the thievery by CitiMortgage and, apparently, Fannie (since the original Chase no longer holds the paper.)
Why anyone would have anything other than the most minimal footprint in a bank is something that mystifies me. As it's been said so often, If you don't hold it, you don't own it.
Fuk the O'Bama BOA. I wish everyone would pull their cash out in 1 day from those pikers.
Employers are phasing out paper checks in my field (healthcare). One employer would not hire the person if they did not have a checking account. (Rapid Outsource Imaging).
Many Federal jobs REQUIRE your paycheck to be direct depsited in a bank in order for you to be paid.
You are comprimising your soul if you work for the Federal government. You will go straight to hell if you continue working there. Get out now when you still can.
Currently unemployed, but every Federal ad on usajobs.gov requires direct deposit to a bank.
I believe they only do that if it's over a certain amount, though it's often pretty small (like $100.) Also, they'll often ask you if you might be interested in opening an account there. Act like you sincerely do, and they'll commonly skip the fee. You can also use a bank account as a sort of "pass thru", keeping just a few hundred or whatever in it, so you can just CASH checks made out to you at your own bank (so long as they're for less than the amount you have in the account.) Note that it is illegal for a bank to cash a check made out to a business name even if you are the sole owner, and they won't do it except by mistake.
A call from the employer to its bank should eliminate any charges for employees cashing pay checks.
In California a bank is required by law to make good (in cash) on demand (a check) when delivered to the actual branch in which the checking account is "held". Bank of America is happy to ignore this and refuse to pay on demand. And you don't get a $25 bounced check fee when they refuse. When they refuse you have in your hand a bad check, but then there is nothing you can do about it. Lately, the banks have been re-writing the laws, so checks are no longer payable on demand but at the banks convenience.
Banks are no longer what they were. Get out now.
When you get credit card offers, lick the empty envelope and send it back empty. This transfers 25 cents from gluttonous TBTF banks to the bankrupt Post Office. Now just repeat 40 billion times.
"When you get credit card offers, lick the empty envelope and send it back empty. This transfers 25 cents from gluttonous TBTF banks to the bankrupt Post Office. Now just repeat 40 billion times."
And people bitch about bank fees and bank bailouts.
Luckily, mailing costs come out of the CEO's bonus package.
Stuff them full of other junk mail first. Recycling;)
yes thats the way I always do it - I dont like spam!
Spam song Monty Python:
http://www.youtube.com/watch?v=g8huXkSaL7o
Exactly my strategy. I figure Capital One must have Pizza, Indian, Chinese and Kebab menus for every food business within 20 miles of my house, by now.
Sky TV, I usually send a copy of Watchtower to. Given their business ethics, they MUST be in need of a little religion.
I noticed Capital One envelopes have a barcode on the backside to identify the customer it was sent to. The ones here in America do anyway. Make sure you cut it off first if you have one or they might report you for mail fraud. ;)