Is The Collapse Coming? Banks Stocking Up On Extra Cash

With the federal Shutdown entering week two, and threats being made from every side concerning the debt ceiling, many are starting to warn about the possibility of a full-scale economic collapse.

While hitting the so-called, “debt ceiling” has little to do with our country actually defaulting – we’re already dead broke with no hope of ever paying down our debt –   what it could do is cause a full blown panic that could spiral out of control, should people start to realize how much trouble this country’s actually in.

Banks Stockpiling Extra Cash to Deal with Possible Run on Banks

With over 800,000 government employees not receiving a check during the shutdown, and the looming debt ceiling fight that’s about to take place in congress, banks are starting to worry whether they have enough cash to sustain another panic. To combat the very real possibility of a run on the banks, some banks are starting to up their cash reserves at local retail banking centers.

According to an executive banker, who spoke to the New York Times, banks are starting to quietly increase the amount of paper currency that’s available at retail branches. They’re preparing contingencies in the event of a U.S. government default, which many think could cause of a run on deposits.

A Treasury Department report released last week warned, the debt limit standoff in Congress has the potential to freeze credit markets, cause the dollar to nosedive, and could potentially result “in a financial crisis and recession that could echo the events of 2008 or worse.”

Is the White House Trying to Cause Panic in the Markets?

If you listen to the President speak these days, you start to wonder if he wants a large-scale economic failure — or at the very least, people to panic.

Last week, in an interview with CNBC, President Obama seemed to be trying to cause chaos on Wall Street. In what many are calling unusually direct comments by a sitting President, President Obama told CNBC, investors should not remain calm during the government shutdown and raised the prospect of the U.S. defaulting on its obligations.

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