Money In The Bank

There aren't many people who know this. I didn't know until I wanted to understand why infinite banking was better for my money. Are you aware of this?

The moment you deposit money into a bank, the funds become the property of the depository bank. By depositing money with a bank, you become a creditor, not an earner of that money. In spite of the fact that you are the lender/creditor, they make the terms, telling you what they will pay you for using your money, and this amount is usually insignificant compared to what they will charge you when you borrow money from them. We won't talk about whose money they plan to use to loan you money.

When the bank accepts your deposit, it agrees to refund the same amount, or any part thereof, on-demand. The guarantee is not guaranteed if there is a run on the bank. I bet you're thinking about the FDIC right now, don't you? Did you know that in 1988 two hundred FDIC-insured banks failed? Did you know they lost money as a result? Check out "The History of the FDIC" on Investopedia.

A bank run occurs when a large number of customers withdraw their deposits simultaneously from a bank or other financial institution over concerns about the bank's solvency.

As more people withdraw their funds, the likelihood of default increases, prompting more people to withdraw their deposits. The bank's reserves may not be sufficient to cover withdrawals in some cases. During the 2008 financial crisis, several silent “bank” runs occurred around the world.

Wachovia was affected by a silent bank run in 2008. Wachovia reported negative earnings results in April 2008, and depositors withdrew $15 billion over a two-week period. The second wave of withdrawals followed in September 2008. After Lehman Brothers failed, a run of $8.3 billion followed, followed by a run of $10 billion after Washington Mutual failed. The combined $18.3 billion represented 4.4% of Wachovia's depositor base (This information can be found at: https://www.investopedia.com/terms/s/silent-bank-run.asp )

Let's take a look at one of these failed banks. Do you know what happened to Wachovia Banks? How did Wachovia come crashing down? They took great risks that led to their downfall. Wachovia took the most obvious risk when it bought Golden West Financial for $25 million at the height of the housing boom. Wachovia's lending practices came under scrutiny after the housing crash. Wells Fargo purchased Wachovia in 2008 after their huge losses crippled them. Four hundred forty-five banks have failed just since 2008.

In that same time frame, more and more people are discovering and taking advantage of infinite banking, in which they have complete control over their own money. Learn your other options before there is a run on your bank and you find yourself "OUT OF LUCK" or as an unsecured creditor to a bank you didn't choose but were forced into by a takeover. It's as simple as searching Google or asking a licensed practitioner like me. Information is power, and it's usually free.

The next article will explore how banks lend money, how much they make on their loans, and how that affects you. The purpose of this article is to provide you with information about the safety of your money and the ownership of your hard-earned money.

You work too hard to put yourself in an insecure position. If there's a better option, why put yourself in that position? The banks do not keep their money in the banks. Neither do corporations, governments, or the wealthy.

Ever wonder why?

The banks earn up to 500% on the money we deposit into their accounts, while we earn less than 1%. Isn't it time we earned the money the banks are making and grew our own wealth?

It's easy, it's guaranteed, and it works. Begin small and grow as you gain experience. Contact us for more information. I provide the answers, training, and support, and only when you are ready to do you start.

We are conducting a mini-pilot program. There is space for 5 people with $100 to save monthly or $1200 for the year. As a result, they receive a comprehensive education on Infinite Banking and Private Equity Banking, as well as a superpowered savings account. If interested, reach out.