When people realize that the money they thought they had in the stock market is gone, when they realize that their credit lines have been cut and when they have no cash on hand left to pay for fuel, groceries or medicine there will be a stampede at your local bank.   The first ones to get there and pull out some or all of their cash will get their money; the lazy, the ignorant, the socialized, the optimists, and the clueless will be left cashless.

You’ve seen this governments response to crisis already and it’s not exactly a positive record: 9/11, Katrina, Bailout.  Don’t expect air drops of food and water anytime soon when you run out of credit and cash.

I’ll repeat what I posted earlier numerous times here, here, and here.

  1. Keep your payroll check in MULTIPLE bank accounts
  2. Keep some amount of emergency funds in your home somewhere safe and sound, don’t assume ATM machines will have cash.
  3. Keep your savings in a SEPARATE account
  4. Keep well under the 100k limit of FDIC and don’t assume FDIC will bail you out; you’ll learn why later
  5. Forget about money market funds
  6. You should already have a large cash position if investing in the market, if not you’re going to have to ride it out
  7. Keep plenty of food available in your home
  8. Keep you gas tank full at all times when possible
  9. Be vigilant at all times; worry about burglary, robbery and assault at any time from now on until this crisis is over
  10. Have a worse case scenario plan for yourself and your family
  11. If you have large amounts of money buy US Treasuries.