In September 2008, Lehman Brothers was the fourth-largest investment bank in the U.S.
The company had over 25,000 employees around the world.
At the time, the company had $639 billion in assets and $613 billion in liabilities.
Way back in 1844, Lehman Brothers started as a general store in Montgomery, Alabama.
At first, farmers paid for their goods with cotton. This led the company to become heavily involved in the cotton trade.
Eventually, the brothers expanded their business into commodities trading and brokerage services.
The company survived railroad bankruptcies, the Great Depression, and two world wars.
Then, in the early 2000s, the company acquired five mortgage lenders.
These lenders included those who had made loans without the proper documentation.
At first, Lehman Brothers had record profits from its real estate business.
Yet, by 2007, the housing market was starting to unravel. Borrowers began defaulting on subprime mortgages.
In early 2008, Lehman Brothers stock fell nearly 50%. By September, the stock plunged 77% as worldwide equity markets also fell.
By this point, hedge fund clients and short-term creditors abandoned the company.
Over time, the company was left with one billion in cash on hand.
On September 15th, 2008, Lehman Brothers declared bankruptcy. The stock fell another 93%.
The collapse of Lehman Brothers rocked global financial markets. At its peak, the company was valued at $46 billion. In a matter of months, the company was gone.
The last few years the world has been rocked by Covid-19, wars, and financial instability.
While many folks prepare for natural disasters one of the more overlooked concerns is the collapse of the dollar.
This could certainly happen if the U.S. was involved in a war or another global crisis.
If the dollar collapsed the U.S. could lose its global dominance in the world financial markets.
It would lead to hyperinflation and eventually runs on banks.
And it would make it more difficult to buy and import goods.
Considering this, here are a few things you can do now to prepare in the event of a banking collapse.
Be careful with foreign funds:
One of the best things you can do to prepare for a U.S. economic collapse is to diversify your banking. This includes keeping funds in foreign accounts.
Many people have bank accounts in countries such as Switzerland and Singapore.
While this is a great idea, keep in mind that these funds might not be accessible if the U.S. banking system collapses.
If the U.S. dollar collapses, you might not be able to move your money from foreign banks to the U.S.
The foreign bank might not be willing to transfer substantial amounts abroad.
Or they could charge an increased rate to move the money. So, if you have money in foreign banks you want to diversify it as much as possible.
Get a second passport:
A U.S. passport is one of the most desirable passports in the world.
But if the U.S. dollar collapses, so will the value of your U.S. passport. Other countries will be less likely to want to do business with Americans.
So, you might want to consider getting a second passport.
Depending on where your parents or grandparents are from you might be eligible for a passport from their home country.
Some countries such as Ecuador will let you buy citizenship by investing in the country.
No one loves America more than I do, and I never plan on leaving.
Yet, having a second passport can make it easier to bank and invest if the U.S. dollar collapses.
The reason I recommend gold so much is that it is a universal currency.
Since the value of gold is based on its weight, its value is usually consistent around the world.
Finally, gold is rare, and it can be used to make other things such as jewelry.
Of course, while gold is king, it’s still good to diversify your investments with other precious metals such as silver.
And if the dollar collapses physical commodities will become more valuable because there will likely be a breakdown in the supply chain to get these items.
This will include food, water, gas, and many other physical things.
So, make sure you have a year’s worth of food and water storage to survive an economic collapse.
Now, aside from food and water and guns and ammo, there are specific financial preparations I’ve done, and I advise all my private clients to do.
This includes retirees on fixed incomes, folks still in the work force, millionaires, billionaires, and everything in between.
It’s something I learned in the CIA, and immediately put into practice. And it’s something everyone who’s serious about survival, self-defense and preparation should do.
And it doesn’t matter what your current financial situation is, you can quickly and easily get better organized and prepared for economic turmoil.