US bank shares plummeted today. All of the major banks have lost in the double-digit percentages. Why is this important to us? Because that piece of plastic we use to buy our gas and groceries will be useless when these banks go bust. Our credit and debit cards are instruments in the fake money (in the form of debt) that these institutions provide. Those cards are the end victims in the current "credit crisis". Debit cards are included because they are issued by the credit card companies, not your personal bank.
There may (and probably will) come a time when your credit card is refused as well as everyone else's standing in line behind you. They aren't going to issue a warning when they stop issuing credit. They're just going to do it. It will be instantaneous.
Many of us have a cashless lifestyle. We buy our Starbuck's with plastic and don't carry much cash. I recommend you have a stash of cash on your person and in your home in case this happens. If you accompany a credit card bust with a "bank holiday" you might find yourself without any cash at an inconvenient time, especially if you are traveling.
Bank Shares Plummet Today
Published: November 20, 2008, 4:27 pm