Great Depression colors seniors’ view of crisis

Having lots of cash on hand also makes seniors more vulnerable to theft, and the FDIC does not insure cash that is lost, stolen or damaged in someone's home, said Michael Spivey, a professor of finance at Clemson University.

But some are so shaken by the negative economic news that nothing but cash will do. One man left Phillips' bank carrying $20,000, despite her warnings.

Because survivors of the Depression generally have been retired for years, they have greater concerns for their families than for themselves, said Peter S. Kanaris, a clinical psychologist in Smithtown, N.Y., who has a geriatric specialty.

"It's not so much that it's going to affect them, but more a general anxiety for the well-being of their children, grandchildren and great-grandchildren," he said.

Many of them have passed on cautionary tales to younger generations.

Tom Curtin, 64, a publishing and travel professional in Wilton, Conn., withdrew thousands of dollars in cash a couple of weeks ago. He said his late great uncle used to tell him stories from the Great Depression and warned him to watch out for a crash.

"I think it's a smart thing to do," he said. "I'm afraid there's going to be either a bank shutdown or a bank holiday. If it doesn't get that bad, then fine, I go put the money back in the bank. If it does, at least I'm somewhat prepared."

Others are more worried about food.

While there have been no shortages and no one anticipates rations, 86-year-old Bill Richards, of Newark, Ohio, said he can't fathom how a loaf of bread got to be $3. He and his wife watch for sales and then stock up.

Perhaps most disconcerting is the worry itself. Fran Marshall, 90, of Upper Arlington, Ohio, said her father was an attorney for two banks and fell into a mental depression when both closed during the Great Depression.

He died in a mental institution, she said.

Obama administration faults Senate bank bill The Obama administration on Friday pushed back against a proposal in the U.S. Senate to create a single bank super-regulator and strip the Federal Reserve of its supervisory powers. Warren Buffett: Financial panic is over Pay czar concerned firms could lose talent U.S. banks to prepay $45 billion to FDIC Geithner encouraged by policies in Asia

So many seniors are taking the new crisis in stride. As Bob Chapman, 86, prepared to eat lunch at the Milton Senior Center, he said he has been careful with his money and not moved a dollar.

"Taking it out in cash is the worst thing you can do because that will make the banks fail by causing a run on the bank," he said.

Milton native Sanford Perry, 80, agreed.

"You just have to trust the system. It's not something that I lay awake at night and worry about," he said. "The thing that concerns me is that people would take their money out and cause the banks to fail by doing that."

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