A Huge Economic Sign????

[TorahTips]

Many will recall that a week or so ago, there was a "glitch" in the Wells Fargo Banking Network that resulted in individuals being unable to access their money at both banks and at ATMs. It was brushed off as a massive computer techno-catastrophe. They never really said there was a liquidity problem, but we were all led to believe that it was only a computer issue.

I, for one, questioned whether it was only a technological problem or if there was some type of liquidity problem with Wells Fargo -- one of the largest banks -- and, one the of largest sub-prime lenders.

Now, we have this tidbit for consideration. Both of my sons work for the very large coffee company. You know which one I am referring to. Both sons got paid today.

One of my sons took his check to the bank and attempted to cash it so he could pay rent. They told him that the check (a payroll check) could not be cashed today but would be placed on hold for five days. He pleaded with the manager and she did some type of over riding of the system and allowed him to get enough money to cover his portion of rent for the month.

Afterward, he asked her why he couldn't cash his payroll check from S***bucks since he had cashed it without a problem in the past. She was very nervous and would not give him a straight answer. All she would say is, "You will find out on Tuesday. You will be notified."

Now, here's the kicker: The bank that S***bucks uses nationally as their only bank is WELLS FARGO.

Go figure.... Are they having liquidity problems? Why -- all at once -- won't a bank cash another banks check?

Bob

[Final Trumpet]

Re: A Huge Economic Sign????

[Issachar]

Re: A Huge Economic Sign????

TorahTips, if this is actually a liquidity issue, it is very, very serious. We'd best be reviewing the opening half hour of "It's a Wonderful Life".

Issachar

[N1095A]

Re: A Huge Economic Sign????

The ATM wouldn't give me my cash today from payroll. Nor the guy behind me. So we left the drive-up and used the walk-up ATM and all was fine. I figured it was the just the drive-up ATM having a problem.

[TorahTips]

Re: A Huge Economic Sign????

Issachar,

I agree. Why else would they be holding a bank check drawn on Wells Fargo for five days. Five days is a long time to hold a bank check. And what's up with them letting everyone know on Tuesday?

I think Wells Fargo is in big trouble. We have a car loan with them. They are now calling us five days before the payment is due asking us if we would like to pay it early. Essentially, they are begging for money before it is even due to them.

Huh?????

Bob

[N1095A]

Re: A Huge Economic Sign????

Well Tuesday really is the next banking day. Unless it was done before 2p.m. or so today, with a 3-day weekend Tuesday is not all that odd. If you count part of Friday then Tuesday is 5 days total ... kinda ...

Could be the money necessary to cover it won't be in place until Tuesday, which yes, might indicate a cash reserve problem.

[N1095A]

Re: A Huge Economic Sign????

Could be a massive server crash. Kinda odd against it but I have a friend who works for one of America's largest banks and they have hundreds of servers. And he's usually doing something to keep them going nearly every single weekend. He works a LOT.

[DawnGrace]

Re: A Huge Economic Sign????

I work for a Big Box. That same week you are referring to our direct deposits go in on Thur night. We can print our payroll info online usually after 2 on Thur. That particular Thur there was an online message it wasn't available until Fri noon. However, Fri a.m. bank deposit online showed the Direct Dep was in there.
My son banks at Wachovia and they are having that same trouble with his payroll ck deposit not available for 5-10 days. Some mgr overrode that for them too. They were told it was cuz they were new customers....but the payroll ck is from a large local company been here for years......fishy to me.
Also...FYI....we have a new cash register key on our machines at the Big Box you might be interested in....when you total the sale it pops up on the bottom "foreign currency"....and we have stores in both Mexico and Canada now. (Amero?).....

Now is a good time, if you haven't already, to have a weeks worth of cash on hand in case your bank won't cash your check for a week. Or at least grocery/gas money/cat food money
--ha -- to get by on.

[Kookey]

Re: A Huge Economic Sign????

Wow Dawn!


This all makes me glad I live off of cash. I am going to until they won't let me.

I do have a bank account, but it's basically just a savings.

I pay everything in cash, or money order.

I have a real hard time with not being able to see the money I am spending.

It's one of my quirks I guess.

[Issachar]

Re: A Huge Economic Sign????

I have a real hard time with not being able to see the money I am spending.

It's one of my quirks I guess.

Quirky = Informal terms; strikingly unconventional.

If "quirky" is unconventional, then unconventional remain.

These little notes and thoughts in this thread are interesting. I'm not saying this is the case this time around, but right up TO the crash of '29, there were pols and economists saying "all is well". We'll see .....

Issachar

[TorahTips]

Re: A Huge Economic Sign????

I have been doing everything by cash also -- even if that means that I pull the money out of an ATM and then go spend it. I am trying to get back in the system (like years ago) of only using cash. If we go out to eat or when I go shopping, I always use cash.

Last time my wife and I went to the grocery store I used $200 in cash to pay a $185 bill. The clerk did not know what to do with it. I gave her the money. I said "here's $200." She stood there, looking at me. Then she said, "that will be 185..." I said I gave you the $200 that is in your hand. She said "I know, but are you going to pay your bill?" I said "I just paid you with the $200 that is in your hand." She said, "Oh, you want to pay with real money, you want to pay with this money?"

She didn't have a clue about someone paying with a large amount of cash. I don't think she had ever seen it done.

Bob

[Guest]

Re: A Huge Economic Sign????

Reposting a couple of things from a couple of weeks ago...here in Canada

I think the banks may well be in trouble...or...they could slowly be priming everyone to get ready for a new banking system coming...for your security you know!

What the two incidences below showed me is that although we think we have money...we really don't if the bank overnight chooses to change the system.... and means of access to your money...and we all know it is coming!

From 2 wks ago...

The phone rang this morning at 10:00 a.m. It was the bank, TD/Canada Trust for my husband. I said just a minute and I will get him and expressed my surprise at them calling so early on Sunday morning.

When he got on the phone this woman wanted all kinds of information as they were concerned about some withdrawals from his account from out of town and he became concerned, like who are you asking all these personal questions. She said she was from the Fraud Dept/Loss Prevention and our account had been flagged. He thought this was weird. He asked her last name and she wouldn't give it. He was not comfortable with all of this wanting all his information but not giving him any....like even her last name. After much discussion, although my husband had a gut feeling she was legit he was still not comfortable with how the call was going so they decided he would call the number on his debit card that she said to call.

She WAS legit in that they had flagged our account....why.....because my husband had done some out of town debit transactions and they wanted to be sure they were legit. This makes no sense as he does this all the time since he works out of town (1/2 drive)

What they did was alarming.....they froze our account in the meantime so unless he called this other number to varify things he could not get money out of our account unless he went directly to the bank...i.e. he could deposit but not take money out....so in essence he could be on a trip knowing nothing about this call this morning, go to take out money and be denied not knowing why.

That is how easy your money is locked at the bank's discretion without us knowing.

The chap he spoke to when he called the number on the card said he was from Norway and they have a great system there.... everything is on one number.....driver's license etc....so you call one number for all.

This may sound great for security purposes but it was just a reminder of how easily the bank controls access to our money and how in the future no one will be able to buy or sell unless we have THE RIGHT number...which I am sure is coming as a centralized security number to access your account...like in Norway............but it will become a global system........a global access number into one centralized system.............Security you know!

We assume a lot........until we see how easily our money is locked with no notice.

Just sharing.

Also....

Sometime after 9/11 we took out $4,000.000 to do some work at the house...first the teller told us we could not have that amount at once...they didn't have it that was a first..........OK........a bank doesn't have $4,000.00 to spare without ordering it in............so.........where IS our $$$ ?

Then the shocker.......... she asked what we were going to do with the money. We nearly dropped asking her why she was asking what we were going to do with our own money..........she said they were told to ask over a certain amount....9/11 security you know afterall we may be terrorists after

Although people think they have money..........they really don't.....if the bank decides you can't have it...like with this story and my original story...they can withhold your $ anytime they want for whatever reason they want and there is nothing you can do.....you can see how the mark will come...take it or no $$$...no buying or selling. I know how frustrated I was with the post 9/11 incident I could see the writing on the wall then and what was to follow 9/11...today was just another wake up call. With that happening so soon after 9/11 you got the sense it all could be orchestrated to grab control ...like the toad in the warm water...enough propaganda and people will accept almost anything...esp. where $ is concerned.

[VickiV]

Re: A Huge Economic Sign????

RE: CNAV.....

That's happened to us recently with a Chase card and a Home Depot Master Card......both are commercial accounts. Both have very large credit allowances, ($40K each) but we very seldom go over $2000 if that much and pay in full whatever we've spent every month..... but yeah, and very wierd notifications, etc. Not logical. Freezing of an account and you having to call them to find out why....and the result being that the account "may have been compromised.........."

[N1095A]

Re: A Huge Economic Sign????

the account "may have been compromised.........."

That could refer to data theft or suspected data theft, either internal or external and some precautionary measures were implemented.

[VickiV]

Re: A Huge Economic Sign????

This afternoon, we'd gone to Sears to buy a replacement dishwasher and happened upon a couple we know. They were in the process of purchasing all new appliances for a home they are having totally remodeled. These people are well-off. The husband owns a very profitable business in the Anapolis area and the wife is a retired stewardess. (We are well acquainted with their finances since they are customers of ours.)

Anyway.....the wife had her credit card denied in the store because she had accidentially entered the wrong zipcode at a gas station today.

Strange.....but that was the credit card's explanation via the sales clerk.

My husband sometimes enters the wrong zipcode using the business zip rather than the personal zip or vice-versa.....but our cards haven't been denied. We just get another chance to reenter the correct zip.