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Ben Swann - Will community banks disappear?

Coming to your local bank by New Year's! Big Banks get bigger and local funds forced to gravitate to the corrupt.

(FOX19) - With all the talk of the fiscal cliff, there is one major issue that is being overlooked. Something called TAG is set to expire at the end of the year and if it does it will have a big effect on how you bank. Ben investigates what this means for you on Reality Check.

Video below:

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View the Reality Check/Simply Money Fiscal Cliff Cheat Sheet here.


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You bet they will ....

It's what happened the last time we had an engineered collapse.

What would the Founders do?

Cyril's picture

Let us not forget, "Everyone should own a little."

Let us not forget, "Everyone should own a little.", shouldn't they ?

But there's a catch. It's called the supply-demand laws. They always eventually impose themselves with real assets (food, land, equipments, precious metals, etc) vs. fiat money, no matter how hard some try to work around those. Hence,


Still not too late to play safe, though.

"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Not hopeful

We certainly can't count on our legislature to do what is right. We are sunk.

cash in your Tokens for Gold and silver

cash in all your cash into silver and gold. Keep it stored with you and cash in some coins or bars when you need some establishment tokens to play with.

Ben Swan is Wrong!

Ben Swan is wrong... at least partly.

The real threat to community banks is not the reduction of FDIC insurance, but rather the possibility of bailouts for their competition. The reduction of FDIC insurance is part of the solution, not part of the problem.

As the insurance drops, the need for security does not. Therefore businesses are driven to banks with more secure financial practices and banks that provide available information about the financial practices of that bank. Generally speaking, community banks have safer financial policies (because community banks know they must stand up to cumtomer-needs based regulation, and they will never receive a federal bailout). And community banks have more availability to this information (business owners can walk straight into the president's office, or talk to one of the bank directors at church on Sunday... big banks don't offer this benefit).

At least in a free market, this is the case. But it's the possibility of bailouts that prevent hamper the community banks from being competitive. Because of bailouts, customers are driven to the big banks IN SPITE of risky financial practices. If bailouts were stopped through the implementation of a gold standard, then community banks would finally be placed an a level playing field.

The increased federal insurance encourages moral hazzard, as business owners feel more comfortable to keep their money at the big banks, regardless of how many risky loans those banks issue. The best thing for business owners and community banks would be to stop the bailouts and eliminate the FDIC, thus paving the way for privatized bank insurance, strict customer-based regulations, and increased competition.

Every Time

I try to watch reality check since they banned it on youtube it glitches all the way through the video. Does anyone else have this problem?


Any idiot who has $250,000

in electronic bytes trusted with the banking cartel deserves to lose it. What the hell do banks do anyway? If they at least had a great big computer server in their vault that stored your data I could see someone allowing the bank to pay a substantial amount of interest to act like they are storing wealth. But they don't. They have a couple hand fulls a paper and software in a cloud. What a goddamn crying shame. Banks are barbarous relics.

That is hard to do when your

That is hard to do when your small business is floating that much in payables and receivables just to operate each month. Those are the people that are at risk at any time in the smaller banks that will be driven to the bigs... I run a business that handles a lot of money to pay all my bills but pockets only a small percentage. If you are not a business owner you may understand this fully.

“Any man who thinks he can be happy and prosperous by letting the government take care of him better take a closer look at the American Indian.” ― Henry Ford.

You are right.

I am just angry at the whole mess.

Small business' are under attack from every direction. Good luck to you.

Cyril's picture

+1 Right on.

"What a goddamn crying shame. Banks are barbarous relics."

+1 Right on.

And you make me feel proud with my little silver stash of N Ozt growing slowly but surely for later and for my family... :)

"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Is this really a bad thing though?

What I mean is, sure it will be tough on the smaller banks and us for a while, but with the FDIC not insuring those accounts, wouldn't the smaller banks entice people to keep their funds deposited by raising interest rates? Bottom line is, banking is a risk, FDIC negates that risk with deposit insurance, lower risk means lower interest rates, which hurts the majority of Americans. So although this will hurt initially, and I'm sure some smaller banks will fail, will it not be better in the long run? I deposit my funds in a small local bank so I'm a little worried too, but if they raise my interest rate...and don't fail...I'm all for it. I will probably move more to silver though just to be on the safER side.

If ignorance is bliss, Washington DC must be heaven.

thanks for pointing this out!!


Christians should not be warmongers! http://www.lewrockwell.com/vance/vance87.html

It made me grind my teeth to hear him say the TBTF will

never be allowed to fail. He's right but it makes me furious!

"When the power of love overcomes the love of power, the world will know Peace." - Jimi Hendrix

This is

actaully a positive - if the major banks weren't assumed "too big to fail". FDIC backed accounts is insidious and causes much of the risky business banking is involved in.

And I just picked up a bumper sticker from my credit union.

Best part is I see everybody from my former bank because everybody that works there, they all have accounts at the credit union.

Most of those who think so actually don't and most of those who think sew actually rip.

Michael Nystrom's picture


for a matter of concern to us all.

Thanks Micheal for the

Thanks Micheal for the enhanced post and recognition on posting Ben's vid. But,,, have I now lost control of my own post since the edit and bump up to the front page? Cheers on your great work. Just learning the ropes and asking if I wanted to delete or modify do I no longer have control and what will happen in the future? Thanks again and in advance for your reply the fate of this and future posts.

“Any man who thinks he can be happy and prosperous by letting the government take care of him better take a closer look at the American Indian.” ― Henry Ford.

I couldn't agree more

Since Christmas is almost here, it reminds me of It's A Wonderful Life, which I just watched. Mr Potter (JP Morgan) tries to take down Bailey Bros. Building & Loan. This issue is extremely important, everyone needs to cancel their accounts from the big banks and go with credit unions or local banks.