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Are Safe Deposit Boxes Safe? No. |
Got a lot of email when I suggested that safe
deposit boxes are not safe from bank or government intrusion.
In most minds the “safe deposit box” is the
“holy grail.” Our comfort will always be OK as long as our safe deposit
box remains safe from others ill intent. Noticed the last few years how
the Swiss Banks are no longer confidential places for one to store
anything of value? The US government has applied pressure on Switzerland
to make available Swiss bank records at any time requested by the US
Government.
And in light of these facts you have the
foolishness to believe your humble safe deposit box at the local corner
bank is safe? Give me a break. Why is it that US citizens always seem to
be behind the times when assimilating current information? Well, I can
understand this if the only news one watches is Brian Williams or Katie
Couric. I feel informed already. Want to hear a sample of Ms. Courics
world wide exposing articles seen and heard across the world?
“…parenting expert and author of "Queen Bees
& Wannabes," talks about raising teenagers, what parents can do about
bullying in schools…”
Definitely a worthwhile subject to study. But on
the evening world news? Anyway. Maybe you get my point. Let’s get back to
the story about the inviolability of the average bank savings deposit box.
A lot of readers thought I was nuts when I told them their safety deposit
bank boxes were not safe. I sincerely encourage you to turn the channel
and start following REAL news services instead of the big 3 at 6:30PM.
That is if you really want to learn what is going on today.
It’s really amazing to me that the majority of
citizens are not even aware of the fact that many of their personal
freedoms that they took for granted yesterday are already gone. Of course,
this process is accomplished a little at a time and usually in the dark of
night when everyone is asleep. When finally discovered by the average man
or woman on the street the shock is kind of like running to the linen
closet and finding the last roll of TP gone. What do you do? From an email
reader below.
David:
“I have always enjoyed reading your articles and have learned quite a bit
from them. However, I am a little perplexed about the portion that states"
"Hold your physical gold and physical silver and do not place any thing of
value in your bank deposit box. Already across the nation deposit boxes
are being opened and the contents auctioned off by the banks to raise
money. Bank of American being one of these banks. Again, do not place any
thing of value in your bank deposit box.” "I have what is called a safety
deposit box and I do keep valuables in that box and it is hard for me to
believe the contents could be confiscated and sold. David, please explain!
Thank you Sincerely, Charles”
And below is another faithful believer!
David:
“You write that banks including B of A are seizing the contents of safety
boxes and auctioning it off. I have not heard anywhere else that this is
happening? Is it true? Can you verify this is so? Or is it only in cases
where the rental fee is delinquent on a particular box? Surely this cannot
be legal? Please assuage my shattered nerves!!! Pat”
Wow! There are this many people that really
believe their money to be safe in the hallowed walls of their local bank
vault? What fools these mortals be.
David,
“I was shocked to read in your article that “Already across the nation
deposit boxes are being opened and the contents auctioned off by the banks
to raise money. Bank of America being one of these banks.” “Would you
please point me to your source for that?” Thank you, David
Daddy always told me to trust my local bank.
Dear Sir,
“My only question is, why are you in the privileged position to know
exactly what is going on and we do not know it?” Roelof
Uh, oh!!! Someone has found out about my
“privileged position.” I watch other news other than what is fed as the
evening slop at 6:30. I love the email below.
“I don’t think the US is anywhere near
becoming a totalitarian country…”
Juan.
Welcome to the real world, Juan. The world of
the 21st century. And another email reader below asks the most appropriate
question. At least this fellow below knows what’s really important.
David,
“Where are you finding the cheap beer?” Greg
ABCNEWS - “Not-So-Safe-Deposit Boxes: States
Seize Citizens' Property to Balance Their Budgets” “Resources to Search
for Unclaimed Property in Your Name”
“The 50 U.S. states are holding more than $32
billion worth of unclaimed property that they're supposed to safeguard for
their citizens. But a "Good Morning America" investigation found some
states aggressively seize property that isn't really unclaimed and then
use the money -- your money -- to balance their budgets.”
“Not-So-Safe-Deposit Boxes San Francisco resident Carla Ruff's
safe-deposit box was drilled, seized, and turned over to the state of
California, marked "owner unknown." "I was appalled," Ruff said. "I felt
violated."
“Unknown? Carla's name was right on documents
in the box at the Noe Valley Bank of America location. So was her address
-- a house about six blocks from the bank. Carla had a checking account at
the bank, too -- still does -- and receives regular statements. Plus, she
has receipts showing she's the kind of person who paid her box rental fee.
And yet, she says nobody ever notified her. " “They are zealously
uncovering accounts that are not unclaimed," Ruff said. To make matters
worse, Ruff discovered the loss when she went to her box to retrieve
important paperwork she needed because her husband was dying. Those papers
had been shredded.”
“And that's not all. Her great-grandmother's
precious natural pearls and other jewelry had been auctioned off. They
were sold for just $1,800, even though they were appraised for $82,500.
"These things were things that she gave to me," Ruff said. "I valued them
because I loved her." “Bank of America told ABC News it deeply regrets the
situation…” “…Ruff is not alone. Attorney Bill Palmer represents her and
countless other citizens in a class action lawsuit against the state of
California. "They figured the safety-deposit box was safer than keeping it
under the mattress," Palmer said. "In the case of a lot of citizens, they
were wrong, weren't they?"
“California law used to say property was
unclaimed if the rightful owner had had no contact with the business for
15 years. But during various state budget crises, the waiting period was
reduced to seven years, and then five, and then three. Legislators even
tried for one year. Why? Because the state wanted to use that free money.”
"That's absolutely correct," said California
State Controller John Chiang, who inherited the situation when he came
into office. "What we've done here over the last two decades has been dead
wrong. We've kept the property and not provided owners with the
opportunities -- the best opportunities -- to get their property back."
“Chiang now faces the daunting task of
returning $5.1 billion worth of unclaimed property to people. Some states
keep their unclaimed property in a special trust fund and only tap into
the interest they earn on it. But California dumps the money into the
general fund -- and spends it. "It's supposed to be segregated and
protected," Palmer said.”
"California has taken all of that $5.1
billion and has used it as a massive loan." “California became so addicted
to spending people's money, that, for years, it simply stopped sending
notices to the rightful owners.”
“ABC News obtained a 1996 internal memo in
which the lawyer for the Bureau of Unclaimed Property argued against
expanding programs to notify rightful owners. He wrote, "It could well
result in additional claims of monies that would otherwise flow into the
general fund."
“Seizing More Than Safe-Deposit Boxes. It's
not just safe-deposit boxes. A British man went to retire and discovered
the $4 million in U.S. stock he had been counting on had been seized and
sold for $200,000 years earlier -- even though he was in touch with the
company about other matters. A Sacramento family lost out on railroad land
rights their ancestors had owned for generations -- also sold off as
unclaimed property. "If I had hung onto it, I would be a millionaire,
multimillionaire," said John Whitley. "But that didn't happen because we
didn't get to hold it."
“State Reforms. California's unclaimed
property program was so out of control that, last year, the courts issued
injunctions barring the state from seizing any more property until it made
reforms.”
“…all 50 states pay private contractors 10 to 12 percent commissions to
locate and seize accounts for them. It's an inherent conflict of interest:
the more rightful owners are found, the less money the contractors make.”
abcnews.go.com/GMA/story?id=4832471&page=1
“Well, At Least We Can Trust The FDIC.
Not”
“I made a deposit of $141,000 with IndyMac.
Even though the limit for insurability was $100,000, I felt comfortable.
No huge bank had been closed for many years. Three weeks later, IndyMac
bank went belly-up. I found out the day of closing (a Friday in July) that
the bank would return $100,000 and would pay back another $20,000 as a
"dividend" at the direction of Federal Deposit Insurance Corp. The
following week, an FDIC agent told me an IOU would be issued to me; as the
bank's assets were sold, I would be first in line to receive the rest of
my money.”
“A month later, I spoke to an FDIC agent in
Dallas who told me it was very "unlikely" that I would receive any more
money.”
“She said the FDIC had already decided how
much it would invest in that bank's closure and all but said the IOU was
worthless. I see IndyMac's assets being sold now, and the bank continues
to conduct business as usual. But I have had no communication and it's
looking grim. The government keeps throwing money at financial
institutions, but obviously nothing is coming my way.” -- Jackie, Dallas
finance.yahoo.com/banking-budgeting/article/108019/hair-raising-money-tales?”
Never would I have believed I would see the
country moving so quickly down the path to obscurity. A trillion here. A
trillion there. And things will always remain the same. Other countries
love to purchase paper backed by nothing that is guaranteed to depreciate
over time. Yeah, right.
World Finally Freed From Hate
Well, are you glad that the new hate crime bill
has finally passed?
Passed as an add on to the defense bill. I’m a
little confused though. I thought every crime committed was based on a
foundation of “hate.” Some where here I don’t get it. We know that every
crime is generated by a heart filled by hate and anger…that is a given.
But how do we measure the level of evil and the intensity of the hate
involved with every crime committed? So the level of punishment will
depend on the “type” of crime committed and to whom? Well, how do we know
that another crime committed for another reason might have had more hate
and evil than the other crime committed?
I guess as time marches on there will be a level
of punishment dictated by the passion of hate and evil of the criminal. We
just are going to have to develop some type of instrument that will have
the ability to measure the level of “hate” within a man or woman’s heart
with every crime committed. Seriously, how are we going to begin to
“measure” hate?
These moves are effectively working to develop a
caste system similar to India. Don’t believe me? Now, different degrees of
punishment for criminals dependent on what class of victim they commit
their crime against. Sounds like discrimination to me. Guess which class
in the future criminals will be more apt to commit crimes against?
Naturally the class that bears the least degree of punishment. Forget
equality under the law.
And How About All Those New Stimulus Jobs?
"If we don't have job growth, we can't have a
strong, or even sustained economic recovery," said Stuart Hoffman, chief
economist with PNC Financial Services.” "At this point, we're still losing
jobs. For those who say the economy has already turned, I'm dubious about
that," said Dan Seiver, a finance professor at San Diego State
University.” money.cnn.com/2009/10/21/markets/thebuzz/index.htm?
Commercial Banks Next to Go Belly Up
Well, the number of failed banks has now risen
to 115. But don’t worry as the economy is getting better. 9 banks closed
in one day on a Friday. But don’t worry as the FDIC will protect
everyone’s savings. And the next bubble to snap? And now it appears the
commercial real estate loans will be the next bubble to pop. But don’t
worry.
Ever hear of C.S. Lewis? Smart man. Very
perceptive. Sounds like the man lived in our generation and not the last.
"Of all tyrannies a tyranny sincerely
exercised for the good of its victim may be the most oppressive. It may be
better to live under robber barons than under omnipotent moral busybodies.
The robber baron’s cruelty may sometimes sleep, his cupidity may at some
point be satiated, but those who torment us for our own good will torment
us without end for they do so with the approval of their own conscience."
C. S. Lewis
Ready To Start Speculating In Gold Mining
Stocks?
How do you know which junior mining stocks are
quality and worth buying? While there are many who believe management is
the most important asset to a quality mining company…I say it’s whether or
not they have the gold in the ground.
Sure, management is extremely important, but so
is the fact of whether or not the company has discovered an economically
viable deposit.
I have seen many top notch managers who maybe
find one good deposit in their lifetime. A few who have repeated their
success. But why guess a mans yet undetermined future success? Look for
the company that has already proven they have the yellow stuff in the
ground. If it’s that good a find there is even the additional good chance
the company may be bought out by a major for a premium.
Jim Sinclair – “As gold makes its way past
$1000 to $1650 and beyond, the order up to now has been Major Producers
and the top half of Junior Producers benefiting…” “Watch closely now as a
shift takes place.”
”…I anticipate that the bottom half of Junior
Producers and the viable companies in Gold Exploration entities to
outperform the top half of Junior Producers and Major Producers as the
price of gold continues higher in late 2009 and 2010.” ”History tells us
this is how it has always happened, and I believe it will again.”
Respectfully, Jim Sinclair
Look for the gold in the ground. “Proven &
Probable” being the most respected and affirmed deposit. This is the term
the banks like best before lending money.
Click here to
order Gold Letter
David Vaughn
Gold Letter, Inc.
David4054@charter.net |
