How To Prepare For Another Bank Run

[CyprusLawyer101]

Silicon Valley Bank offered sweep accounts to anybody with $1M+. If you lost money in this bank failure you're an idiot.

View attachment 4577


Yes people say it but in practise, it never happens to anybody unless you're a Russian oligarch (I guess we have many Russian members here that don't exactly advertise that fact). Happened to me a few times that a bank told me "you can't wire USD to this particular country". I just converted to EUR and then wired.

In the WORST case- if you banked at Rietumu, your USD balance was just converted into EUR when they lost their US correspondent bank. Not the end of the world.

I fail to see how "Foreign real estate" is safer than holding US treasuries but to each their own...


0.001% chance and even if it happens (as it happened to Rietumu for example) your USD balance is just exchanged into EUR balance. So worst case you will pay some fees.

Your biggest risk is you wiring to some semi-shady country\person and your bank gets a call from the US Fed asking for documents. Most likely your bank will prefer to close your account rather than fill 300 pages explaining what you do and who you are.

I have seen the swift cut off happen more than 2-3 times. Converting to EUR could be an option , but a bank who suffers a swift cut off from the US immediately becomes high risk for EUR correspondence banks, but this I guess is another kind of risk.

 

[Martin Everson]

I fail to see how "Foreign real estate" is safer than holding US treasuries but to each their own... In my opinion buying a villa\hotel in Phuket or some farmland in Panama is a LOT riskier than holding cash in multiple banks and currencies. Plus you actually get INTEREST from banks now. 4% risk free in USD is much better than even making 10% on some farmland investment (after you take into account fees, taxes) not to mention you can lose it all on currency fluctuations.

Trust me I was a long bond investor and timed the market well to exit bond market on my long term euro treasury bonds back in Mar 2022. I posted about this back then in this thread related to protecting wealth from future sanctions. Had I not I exited I would be sitting on substantial loss of capital like.......SVG bank RIP .

4% interest on US Treasuries is a return below the rate of inflation and that's not how you preserve your wealth . Long term Euro treasury bonds were good for me when there was low inflation but not any more. I put my money into total return assets i.e I get income from rent and capital appreciation from my real estate and all tax free and outside banking system. As I mentioned I bought as a distressed sale due to owners falling foul of rising interest rates on their financing...lol. Oh and its not in the strange places you mention. I am a little smarter than that when it comes to wealth/asset protection....lol

I'm honestly interested... why is that?

I asked you the question and you answered with a question. How does that work?

I have seen the swift cut off happen more than 2-3 times. Converting to EUR could be an option , but a bank who suffers a swift cut off from the US immediately becomes high risk for EUR correspondence banks, but this I guess is another kind of risk.

Washington’s ‘trigger-happy’ sanctions may push countries away from the dollar, says think tank​

https://www.cnbc.com/2022/03/22/cou...rsify-away-from-the-us-dollar-think-tank.html

P.S Lets get back to thread topic or start a new thread and we discuss there plz. USD is a deep topic and not for this thread.

 

[void]

I asked you the question and you answered with a question. How does that work?

I considered you question to be a rhetorical one... I appologize if I misread it.... then I don't know and would like to know your opinion....

 

[JohnnyDoe]

Banks and fiat currency are based on trust.
Bitcoin is based on math.
Make your choice

 

[RealDude]

Bitcoin, USDC stablecoin rally after US intervenes on SVB​

Stablecoin USD Coin (USDC) , which had lost its 1:1 dollar peg and hit an all-time low on Saturday on concerns over the exposures of Circle, the firm behind USDC, to Silicon Valley Bank, recovered. It was at $0.9917, closer to par and up from last week's lows around $0.88.

Bitcoin was up about 8% from Sunday's lows, trading at $22,568.

https://www.reuters.com/technology/bitcoin-usdc-stablecoin-rally-after-us-intervenes-svb-2023-03-13/

 

[GeneralGogol]

4% interest on US Treasuries is a return below the rate of inflation and that's not how you preserve your wealth . Long term Euro treasury bonds were good for me when there was low inflation but not any more. I put my money into total return assets i.e I get income from rent and capital appreciation from my real estate and all tax free and outside banking system. As I mentioned I bought as a distressed sale due to owners falling foul of rising interest rates on their financing...lol. Oh and its not in the strange places you mention. I am a little smarter than that when it comes to wealth/asset protection....lol

Great to hear that your sell was well-timed!

Buying distressed assets can be great and I hope you made a good purchase. I personally could not sleep at night knowing all my assets in this world are in one building\compound\farmland\hotel\whatever.

Regardless of the location of your asset, you are still at the mercy of the local government/regulation, zoning laws, or Covid\Travel restrictions (if it's a hotel), or price of labor\wood\bananas (if it's farmland) and the list goes on and on. Real estate always includes political risk even if it looks like just an investment. I guess you did not buy in Europe or United States as you clearly hate both these "areas" which only leaves South America or Asia - areas with very particular risks of their own. Good luck, definitely not an investment for everybody

 

[RealDude]

Great to hear that your sell was well-timed!

Buying distressed assets can be great and I hope you made a good purchase. I personally could not sleep at night knowing all my assets in this world are in one building\compound\farmland\hotel\whatever.

Regardless of the location of your asset, you are still at the mercy of the local government/regulation, zoning laws, or Covid\Travel restrictions (if it's a hotel), or price of labor\wood\bananas (if it's farmland) and the list goes on and on. Real estate always includes political risk even if it looks like just an investment. I guess you did not buy in Europe or United States as you clearly hate both these "areas" which only leaves South America or Asia - areas with very particular risks of their own. Good luck, definitely not an investment for everybody

Don't forget Africa, especially the Somali real estate market still has a lot of potential:

 

[JohnnyDoe]

No worries: Money printer go BRRR

 

[JackAlabama]

No worries: Money printer go BRRR

Exactly. and thats why we hold bitcoin.

 

[void]

Don't forget Africa, especially the Somali real estate market still has a lot of potential:

View attachment 4583

what do you mean? this unique opportunity clearly needs just some TLC and also don't forget to mention that it's clearly overlooking areas of lush green vegetation

 

[RealDude]

what do you mean? this unique opportunity clearly needs just some TLC and also don't forget to mention that it's clearly overlooking areas of lush green vegetation

Yes, the vegetation is incredibly diverse.

 

[GeneralGogol]