I have absolutely no proof of this, but you heard it here first. Some banks will start limiting withdrawals because of panic withdrawals from the banks and ATMs. This will be their excuse for limiting the the outflows of cash from failing banks. And what better time than a 4 day weekend! Start your cash withdrawals today folks!
There's no reason for a panic bank run in Australia, people run on banks if they think the bank is failing, I can't see any reason that people would think that the electronic POS and card systems that they are accustomed to using would be interrupted in any way. Remember this is likely to be a relatively short term event unlike a war, once a vaccine is announced people will feel confident to get on with their lives and there may even be another market euphoria.
@Shaddam IV, your money in the bank is as secure as toilet rolls at Woolies. Remember, 50% of the population is below average!
I am with sammy on this one. It is not about banks failing - it is about perception (at least initially). However this crisis may bring substantial challenges to the financial community which may then result in failures. imho it is a smart move to have three months of expenses in cash on hand. You are not getting any interest on it anyway and the bank doesnt need it. They can get more from the Government, we however will be mostly left to our own devices. Personally I prefer to be prepared.
Openeyes is right. There is very little reason to keep money in the bank. Interest rates are virtually zero with a lot of risk. Don’t forget Westpac had to raise capital last year and it is probably not the only bank in trouble. Stop to consider the effect of so many companies going broke. Cash limits are a real possibility. Get your money out now. All the focus is now on toilet paper. As soon as one media outlet clues onto a possible cash run, it will be a self fulfilling occurrence.
Funnily enough I find it interesting that supermarkets are not able to restock. I have visited 3 super markets over the last 4 days and they all have empty shelves. I am starting to wonder if there is in fact a problem with the supply chain. There has been no information about how much toilet paper is actually getting sold. There may be a lot on the other hand there may be very little stock making it to the shelves. The 50% that sammy refers to are no different to a flock of birds. Birds stay together because the survive longer like this. It is natural instinct ti follow the herd. Dare I say it but we might well be heading into a period of more natural selection in more ways that one. It certainly feels real but it wont be pretty.
Its because these social parasites are like seagulls. They are sitting in aisles for an hour waiting for a fresh pallet to come out and then it disappears before it hits the shelf. How can they restock with buying frenzy like that?
i can think of a reason....the power goes out. turn the switch off and cash is king. i know that right now unit 4 at Bayswater power station is shutdown for maintenance. that means output from that station is down 25%. i'm leaving home tomorrow to work on it for a month. admin staff are in meetings right now to consider options in case of lock downs in NSW. do they still work through a lock down to get it operational again?
On March 31, $750 will be going out to over 4 million government dependent people. That's over 3 billion dollars going out to those who will most probably withdraw it as cash. You only need a few ATM's to run out of cash before the words out to withdraw everything.
supermarkets follow a just in time supply model, they know day to day what toilet paper required on the shelves. It comes in and goes out just as quick. They don’t have a model that is able to keep up with this demand as they don’t stock warehouses like regular businesses. in regards to the banks I always look back for the Crisis Resolution Act when I’m in doubt. The banks have all powers to hold deposits so it’s a matter of what risk you are prepared to take. The way I see it, I can take it out and put it in as many times as I like so why not take it out when in doubt and put it back in when more confident.
Actually I have been having difficulty obtaining cash as of late, last week i had 2 atms fail to provide me with $$$ and a branch argued with me about getting $5k out without notice, same branch also has been shut twice in last week with technical issues forcing me onto atms with restrictions that follow Im not usually one to worry about this but this is unusual for me and i regularly withdraw large sums of cash 3 to 4 times a week.
Sounds as though the banks are lowering the bottom of the barrel. Will they quickly pay their management bonuses before they run out of all money.
