19 votes

Man Pulls $1 Million from Bank because of The Fed 0% interest

A former Harvard professor has been making headlines after announcing he was pulling over $1 million from his accounts at Bank of America (NYSE: BAC).

The professor cited the Federal Reserve's zero interest rate policy as the primary reason why. He blames the policy for the economic problems in the emerging markets and sees a major pull back for U.S. equities.

http://www.fool.com/investing/general/2014/02/16/man-pulls-1...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
TwelveOhOne's picture

One comment (there) mentioned tax lien certificates,

and that you can make 18% in Florida.

I attended a Tax Lien Certificate workshop years back. I was very interested in it, but after some research I found that the "18% interest per year" is the maximum; when you go to the auction to bid on the certificates, you don't bid the price up -- you bid the interest down.

So it might look great from a distance, but once you start bidding you find that you may end up with a 2% certificate, or even worse.

The one benefit to this behavior is, if the poor landowner who the state has decreed they need to pay, doesn't pay, then the state takes the land away from the poor person and gives it to the tax lien certificate holder. (Happens about 2% of the time, they said.)

That part always made me cautious, in the same sense of "never attempt to extort more money than it would cost to have you killed." Take away a man's house and he might fight back, laws be damned.

So I never participated in this industry, and I am very glad, now that I have awoken more fully -- I like to look back at past behaviors and determine whether I was acting correctly or not. As I said in another comment, regardless of whether anyone else is watching, I know that I am.

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

TwelveOhOne's picture

Author Jay Jenkins and statist thinking

"Even though the FDIC backstops only $250,000, the professor could simply divide this money among 4 institutions and be completely secure."

Yes, because the government just prints as much money as it can in order to fulfill whatever it desires, right? I think Mr. Jenkins needs to think more critically about this rabbit hole called the Federal Reserve.

There is no way the FDIC can pay everyone once the silver shorts start needing to be covered. And it looks like that started Friday, with silver up 5% -- and another 1.5% so far today!

We certainly live in interesting times.

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

He's not the ONLY one!

There are many people doing this. You just don't do it all at once. Also what do you do with it then?

TwelveOhOne's picture

Elements, data, food, production

Elements: AG AU PB FE H2O

Data: Crypto-currencies

Food: seeds, storage

Production: land

I love you. I'm sorry. Please forgive me. Thank you.
http://fija.org - Fully Informed Jury Association
http://jsjinc.net - Jin Shin Jyutsu (energy healing)

</