How Safe Is Your Money Now? Watch This

This is a billion dollars, but it is also a lesson for our US government to not follow in the footsteps of other governments and print more

money

so that these billion dollars actually exist, the value of which is not even worth the paper on the one that is printed, believe it. or not, just in 2020 we had one bank go bankrupt, but in just the last three years since the beginning of 2017, 13 banks went bankrupt and closed completely and that means that if you kept

your

money

in one of those banks, you could potentially have lost a lot of money and

this

is especially scary considering everything that is happening in the world with the health crisis which unfortunately has now turned into a financial crisis and more and more companies are starting to close and lay off people.

I made a video about

this

recently where most of my immediate family was affected by this latest round of layoffs and that makes me very sad now for myself, but especially for my friends and my family, and if things can't get any worse, the The stock market is also in free fall, including my own investments that I have held in Robin Hood, which at their peak were worth approximately $210,220,000 and are now worth approximately one hundred and forty-two thousand dollars, so I'm right there with you, I'm feeling the pain. too, but I imagine most people keep their money in the bank, including me, and that really begs the question: is our money really

safe

in the bank right now or should we go all in?

Hello, my name is Andre Dick and the world still seems to be on fire never gets old, but recently I got a lot of questions from people asking Andre if our money is really

safe

in the bank right now because recently the Federal Reserve announced the infamous infinite money mistake. It's something like that, yes, free. money glitch infinite money who doesn't want that have you ever played Command & Conquer Red Alert retaliation on PlayStation 1 in the past? I still remember the money glitch is square circle square a free lunch, maybe that's my contingency plan, but what this means is that we're about to enter a new phase of something called quantitative. relieve that sounds like time travel in a sci-fi movie and I'm sure you've heard that word before in the simplest way I can describe exactly what it is because it's extraordinarily complicated is that the government is about to use debt to pay debt is like taking a credit card and then transferring the debt and then paying one credit card with the other I'm a genius I haven't really paid my debt, I just transferred it from one credit card Plus the other tasks successfully failed now in the short term, this should, in theory, help the economy grow with the Fed and the government injecting more liquidity into the economy and the way of thinking about liquidity is like it's the oil for the car engine without oil the engine is not going to run properly so by injecting more money into the system it allows people to continue exchanging money, continue lending, continue borrowing and without that, if there is too much panic and fear in the market and everyone pulls out and there is no money in the system, it will stop completely like it would in a car engine, so with the Fed and the government pumping more money into the system, hopefully the idea is that it will prevent that the economy comes to a standstill. total shutdown, on top of that, the government has announced 0% interest rates, which in theory is great because that makes car loans, home loans, student loans much easier to pay, with the exception of credit card interest rates, because that's where banks and credit card companies make a lot of money, but this also means that as interest rates go down, asset prices tend to go up and the opposite is also true: when interest rates rise, asset prices tend to fall, which is like going on a date, it's when you chase someone and they say no, I don't want it, they're fine, I don't want you back and then they start chasing you, it's not healthy but basically that's how it works and this actually makes sense because for example if you wanted to buy a house right now because interest rates are basically nothing and it's cheap to borrow money , there is more competition in the real estate market, which means home prices go up, therefore interest rates go up, low asset values, which is why I am also hesitant about buying a house in this moment and I'm torn between financing and simply waiting for house prices to come down, but that's the trade-off we have to make.

Stock markets also tend to rise as interest rates fall, especially when the Federal Reserve buys corporate debt, which is This new trick they're trying that makes me wish they would buy my parents' debt could be more useful, but if you're an investor during this time, you should theoretically make more money, so it all sounds good, right? We are on the road to recovery, well yes, but no, because the people who really pay for this are future generations, the people who really pay for these things are future versions of you and me, it's like my son used to say.

Uncle Ben with a lot of money. big inflation is coming, it's also why boomers like to say things like, back in my day, I bought a house when I was 18 for $10,000, you lazy Millennials, because our lifestyle is becoming more and more expensive as corporations pass those costs on to customers by increasing the prices of goods and services due to inflation, which is because the government is printing free money, but when it comes to this kind of thing, few people They really understand what's going on because it's so complicated, but those who do understand it are a little divided. somewhere between thinking that yes, this is something necessary for the government to intervene and potentially save us from a major crisis; in other words the government should bail us out because the government should do its job so we don't lose our permanently we should protect our 401ks I Ras our insurance plans our pensions because we don't want to go back to the dark ages we actually want to retire peacefully and that makes sense In short, the government right now is like a parent who sends his money to children, he is not the smartest child in the world, but he loves you with all his heart and would you really let him starve and live homeless? on the streets?

It's a loving move, but maybe that's exactly what the child needs. He needs to fail so he can learn to live on his own without depending on his parents' help, it will hurt him, but maybe that is exactly what he needs and there is another important part of the population that is completely against the idea of ​​any kind of bailout and who is completely against quantitative easing or SERPs. Zero interest rate policies that demand a complete collapse of the system so we can finally hit the reset button and start this economy from scratch. Think of these people like Thanos.

The hardest decisions require the strongest wills and that is typically the divine thing you will see. among the American population of people who actually follow all this nerdy financial stuff, but most people just don't care, so if you're one of the few people who still

watch

es this YouTube video, then you're ahead of the pack. most people in the world, but one thing is certain and that is that there is nothing that anyone can do about it, no matter how much we talk about it, discuss it, debate it, none of us will have influence on any of these policies, but at the same time The less you need to know is that the more money you haven't invested right now, the less valuable it will be in the future as the rising tide lifts all boats and if you're not in the water you'll miss out on all the free floats the government is offering. throwing people and me.

I want my floats for free, so I won't sell anything and continue in the market. It is also a curious fact that this is the reason why Bitcoin was created. You may have heard of her. It is a digital cryptocurrency that was worth 21 million of them. nothing, at some point a guy bought pizza worth 10,000 bitcoins which at the time was worth about $30 and then at its peak each bitcoin was worth $20,000 yeah imagine being that guy. I was once almost a billionaire, yes, that Bitcoin and it was created specifically. fight the government's ability to centrally control our money supply so that we could instead rely on a money that was more governed by the laws of mathematics and computers rather than controlled by a central entity that was capable of simply printing money out of nowhere. like right now stealing our savings rate from the university, so in the short term I could totally see the price of gold and things like Bitcoin going up at least in the short term.

Also, I don't want to scare anyone by saying things that they believe. Panic and drama is unnecessary here, but the media is doing its thing and saying that the coming recession will make 2008 look like a small dot on the map and that's terrifying. considering that in 2008 the unemployment rate reached eight point one. percent peaked at nine point nine percent in 2009, but in 2020, the next recession, they say the unemployment rate could hit twenty percent, which is twice as bad as it was in 2008. Just think about that twice as bad because in 2008 I remember I was just graduating high school and seeing all this stuff going on around me I didn't really care and none of it affected me because I wasn't investing at the time.

I wasn't looking for a job and none of that really affected me. All I cared about was reluctantly going to college just to please my parents, and at the same time, I was sad to see all my friends leave the state to go into mountains of debt, but for everyone else it was a scary year because That year alone people lost values ​​in their 401ks, their IRAs, their essays, they lost their health insurance, they lost their pension plans, their homes and everything else, it was terrifying, but just for context, in 2008 alone, 25 banks They went bankrupt and closed. but in 2009, the next year, just a year later, guess how many banks we had to close because I guess their numbers are way off.

I'll give you just a second to think about it because in 2009, 140 banks failed. and go out of business and you can even check my numbers by going to FDIC government slash bank slash individual slash failed Bank list dot html 'that's a mouthful so given everything that's going on in the world right now, how? How much cash should we have to avoid a total disaster and if we decide to keep it in the bank, what would it take for the banking system to collapse and, if it does, what would it take for us to get our money back? and how long would it take and what is the process?

These are all questions that keep me up at night along with this magic trick. I have no idea how it works. I'm still trying to figure it out so let's take a breath first, I'm going to show you right now exactly how to prepare during these uncertain financial times, but I want to remind you that this is entering personal finance territory and it's called personal finance for a reason because It's a public, no, it's personal and will vary from person to person, there is no one-size-fits-all approach, but there is a loose guideline that you and I can follow to determine exactly how much money we should have and also no matter what method you choose.

Use it, everyone starts with a budget, which is just a fancy word for saying you need to keep track of how much money you're making versus how much money you're spending now. You can do this by downloading an app like mint or personal capital and once you have downloaded something to track

your

money. You can use a method called the 50 30 20 rule, which is an elegant way to track your income and classify it into different categories of your life, for example, 50 percent of your income should be things. like fixed costs and for me that's things like rent, my internet, phone bill, my gym membership, which I just canceled because I'm not going to pay $90 for a gym that's closed.

Adobe Creative Cloud to edit my videos and to some extent my utilities Now all those bills shouldn't make up more than 50% of my income, another 30 percent of your monthly income can be assigned a fancy word that no one use in a real world conversation about discretionary spending and this includes restaurants, grocery bills, charitable contributions. and/or things like Jesus, I know you don't really need Yeezys, so let's move on to the other 20% are your retirement accounts, these are your IRAs, your Roth IRAs, traditional IRAs, your 401ks,your HSA, anything that has to do with retirement goes here, you can also use this 20% to allocate it to building an emergency fund worth 3 six months of expenses or nine months.

If you really want to be conservative during tough economic times like we're going through now, you should be able to do this in two to six. months in advance in case you lose your job and that's the amount of cash you should have, but if you don't trust the banks and you think they're going to go bankrupt for whatever reason, then you can have literal cash in your home vault and that is the amount of money you should have but remember that by having cash you are taking on a different type of risk if people can break in and steal your money so keep that in mind but luckily this is not real , So do not do it.

Come calling, but this brings us to the most important question of the day and that is: what would it take for the banks to collapse right now? Is your money safe right now? Because it is highly unlikely that the financial banking system will collapse as a result. of everything that is happening because this crisis is not a financial crisis like it was in 2008 at this time the banking restrictions and rules are much stricter than they used to be in 2008 even though the Federal Reserve is currently relaxing them more, so if we see a failure of the banking system it will probably win.

It won't come for many years, but it could be as a result of how we are handling the situation today, but that is a story for another time. However, there is one way the banks could fail today and that is if everyone lost faith in the whole system and I thought it was like an episode of Rick and Morty where everything went to zero and the dollar was worthless, then we could be in trouble and there are quite a few people who believe this, just check out some of my YouTube comments on this video and some of my previous videos and you will see that there are quite a few people who believe this.

I'm so smart. He was right. I told you I invested in gold, I got my money, I got my ammo and I'm charging my laser. So, in that case. We could potentially have a complete failure of the banking system, which is why the government decided to intervene and do quantitative easing, inject more money into the system and offer 0% interest rates stimulating more economic activity so that people do not panic. So if you want to be sane and sensible, you can look at this and say, well, then it's a good thing the government intervened to prevent something potentially really bad from happening in the future, or you could look at it from a broader perspective. target capital in a ready way and say well this is a really bad thing because you are not allowing the economy to grow, it is a dog eat dog world and companies must be allowed to fail, otherwise you are encouraging irresponsible government behavior and evil corporate habits. but that depends on how you want to look at it, which is a choice only you can make.

Still, if you have issues with rich people like some of my friends here on YouTube, then you shouldn't keep more money than the guaranteed maximum allowable limit, which will vary. From country to country, for example, if you're in Canada, your CDI C limit is up to $100,000, which I think right now is around $20 USD. but for the US we have the FDIC insurance limit that protects our money up to 250,000 US dollars. It used to be $100,000 too, but after the 2008 debacle they bumped us up to $250,000 and the F cents just stayed there and that's the amount. money we will be insured and protected in case a certain bank goes bankrupt and for anyone who has heard that the FDIC can take up to 99 years to return your money, that is 100% a myth and is false in case your bank goes bankrupt.

The FDIC will take action and generally return your money the next business day; In fact, it's a true story that most people usually won't even notice when their bank fails because all that happens is that their money stays in one place and the bank runs out of money. it was renamed to something else and those are just the facts and I tell it like it is so if you are rich and have the luxury to do this then keep your money at home with cash in a vault somewhere if you feel which is like that. Safe enough, just make sure you have enough cash to pay for a few months of expenses, maybe even a year if you're feeling really conservative;

Otherwise, there's nothing wrong with keeping your money in the bank as long as it's spread across different FDIC-insured accounts. banks to where you feel that the logistical nightmare of tracking down different accounts and multiple banks is enough to protect your investment, but in short, don't keep all your money in one place and invest your money in verified resources like real estate stocks, dividends from REITs. stock index funds maybe bonds hold some gold and maybe invest in uncorrelated assets like Bitcoin because you want to secure your ticket to the moon if we ever finish building that rocket you don't want to miss the moon landing just make sure you don't .

Do not invest more than 10% of your net worth in that company. Don't forget to open your account with We Ball. Finance any dollar amount. Get one free stock worth up to $1,400. Open an account with Robin Hood. Get another free action. and remember to stay calm, everything will be fine, serious money. I am very happy to be back in the United States. I'm happy to report that everyone is safe. I'm excited to finally be able to help my family get back on their feet. Enjoy your week. I love you all lovely people and I will see you all very soon, bye.