What would happen if August 2 should pass and everyone’s worst fears were realized with the country slipping into default?
On Fox News on Saturday, Powell Financial Group CEO Patricia Powell offered some advice to viewers just in case the unthinkable happens: She said Americans should have cash on hand.
“You know, everybody needs a cash reserve and I’m talking seriously about cash,” Powell said. “Cash dollars in your wallet, not maybe just money in the bank. But you also want money in the bank and not just in a money market fund. None of us know if they default, if they choose to default, whether there’s going to be a credit crunch, whether your credit — whether you’re going to have trouble accessing your credit. You might even have some trouble with your money market funds. So none of us know. Make sure you have cash, cold hard cash.”
And just how much cash? According to Powell, $1,000 would be an adequate amount for most people.
“For most of us, if we had $1,000 in bills in our drawer, we would be fine,” Powell said. “I don’t expect you’re going to need them. But you know what? If you need them, it’d be nice to have.”
Powell also said her clients are holding on to twice the amount of cash they normally would. She pointed to similarities to the market crash in 2008 when Congress failed to pass TARP.