Americans have $6.8 trillion deposited in institutions.
$4.2 trillion is FDIC insured
And the FDIC only has $52 billion tucked away to back the entire system.
One more time, the FDIC only has 1% put away to back the entire thing. And Americans stupidly have $2.6 trillion sitting out there at naked risk.
(side note - just think how dumb you had to be to have more than the FDIC limits sitting in IndyMac. Amazing)
In the end, after the banks fail, and the tiny little FDIC kitty is swiftly blown away, the 'insured' deposits will still be backed up. But you-know-who will be called upon to cut the check.
You and me.
The taxpayer.
And once again, if this happens, Bennie and the Inkjets would just get those printing presses going.
And the US currency emergency would go into high-gear.
Got gold?
July 13, 2008
The FDIC has $52 billion in their tiny little kitty, used to insure $4.4 trillion of the $6.8 trillion deposited in America's bank accounts
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59 comments:
"Better get used to them high prices son; you're in the Big City now."
No matter we will be spening Amero's soon!
RayNLA
Can anyone recommend a foreign bank to keep my money in non dollar funds?
I'm wondering how orange MOZILO will look when his in one of those orange Jail Jump suites. hehe.
I think WAMU is next to go, by ends month! Thanks for the free checking WAMU!
Eric,
The problem is even foreign banks are not completely safe.
Anyway Keefer is correct. The Fed will in no way allow a massive bank run as that would create total chaos. At some point all FDIC insurance will be guaranteed and more dollars will be printed. The USD will truly become toilet paper. Gold and Silver will rule the day. Unfortunately you can't eat either of these metals nor use them to power your car.
Oil will be truly king.
-Mike
You have potentially underestimated the problem.
For Example.
When all the insured Indymac depositors get their money, they will deposit it in a different institution.
What if they deposit it in the next one that fails? The same 100k has now used up 200k of FDIC funds.
You think this might exacerbate the problem?
Gold to the moon!
I am 90% certain that there will be a market crash on Monday.
"Oil will be truly king."
Have you tried carrying a barrel of oil around lately? Sure, it will be expensive, but gold and silver will be the medium of exchange.
Oil is energy.
Gold and Siver are Money and as the saying goes, "He who has the gold makes the rules."
Remember that.
"Americans have $6.8 trillion deposited in institutions. $4.2 trillion is FDIC insured"
So, almost 40% of deposits are uninsured.
I thought I read that FDIC announced that it was covering 50-cents-on-the-dollar of Indymac's uninsured, which will deplete FDIC reserves faster.
MONDAY!
REMEMBER THE SUN RISES IN THE EAST!
BAWAHAHAHAHAHAHAHAHAHAHA
http://finance.yahoo.com/intlindices?e=asia
wow, the FDIC makes Ambac and MBIA look "well capitalized."
well so much for the deflationary spiral theory.
""Gold and Siver are Money and as the saying goes, "He who has the gold makes the rules."
Remember that.""
I believe you've got it wrong. It's
"He who has the gun makes the rules."
60% of you chose WaMu in the latest poll as the most likely to go under first, so I said screw it, poll over, and put up a WaMu Death Watch
Anyone who has more than the FDIC limits in WaMu is a fool
I think it'll be over for them in a matter of days, but unlike IndyMac more likely will be a take-out by a bigger bank (for $1)
Another aspect of our overords' War on Savings: $100,000 in the bank used to be a fortune; now it represents a mere 8 years in near poverty.
Why wasn't the cap inflation adjusted?
We all kNWO the answer to that one...
This is a problem with the renting strategy. You might just wake up and all your gains are gone.
I really think that the American people have not caught on yet. HP readers and some in the financial community (not the mainstream community) have become aware, but the general public is still blissfully igorant of what is about to hit them.
For example, I live in an area of Northern California known for its gold deposits. Back in the 80s, when gold shot up to $850, there was a lot of renewed interest in the many closed mines, and aside from that, many people bought dredges and started roaming the hills looking for the yellow metal. These days, even with gold at $950, nobody is interested in doing the work to look for gold..even though they now own these monster SUVs that could easily make the trip to the back woods.
Americans, by and large, don't have any idea of how to even purchase gold or what to do with it. In this, they are being aided by their supposed "financial advisors". The best thing that I ever did was fire mine. They will do ANYTHING to get you to buy and hold stocks and will LAUGH AT YOU if you think that that the markets are in trouble.
Between flipping houses, selling houses (which really takes very little in the way of brains), building houses (that takes a little more brains) and welfare and "disability", Americans now believe that making a living is and should be easy.
No,I am afraid that only thing that will wake the Amreican people up to the possiblities of gold is hunger, and then it will be too late. If you have no capital you can neither purchase gold or look for it.
I have been obsessing about gold when I go to sleep and think about it when I wake because our economy's situation is so bad.
I have the opportunity to directly buy a very nice, graded, late 1800's $20 gold, early 1900's $10 and $5 dollar gold piece and other gold coins through a friend who recently inheited them from an estate.
I plan to sell them eventually... however, does anyone here know what the capital gains taxes are in selling gold coins? Are they considered "collectables" like gold etf's and taxed at the higest rate, or are they taxed the same as basic stocks? Also,what kinds of fees do coin collecters charge when they buy gold coins from individuals? Are these sale documented for the government?
The dealer who checked out these coins told my friend that someone called him recently and is looking to purchase around $50,000 dollars in gold coins.
It happened last week when a good friend of mine took these coins to a reputable coin shop here in the bay area.
I realized years ago that something was very wrong with our economy, but to hear all our friends talk like zonbies about how "housing never goes down" made us somewhat unpopular. It was so refreshing when I found this blog. Actually, it gave us more piece of mind knowing there are others in cyberworld who feel the same way we do.
I am so grateful for this site. I want to thank Keith for all his hard work in creating this site where we can all contribute ideas and discuss with others of the same mentality.
My bank's investment advisor told me that even though the FDIC does insure your money that they can take as long as they want to pay it back to you. Not sure if that was a scare tactic - I never trust a guy working on commission. As for gold and silver - they only hold value as long as people believe they have value. You can't eat gold and you can't drive it to work.
I really don't think wamu will go under.
It is time to buy stocks folks.There will be no market crash.I would like to see a heavy day of selling so we can form a bottom.Thisis wehn smart investors get rich.Take your paranoia to n.korea.
Suddenly, holding worthless dollars in Treasury securities while living in my mommy’s basement doesn’t look so bad.
"Oil will truly be king"
Yup. I paid for my groceries at Costco with a half-barrel of oil.
Duh.
Gonna take two barrels of oil to the gas station and trade them for cash to make my car payment.
Double Duh.
It's amazing how some people are able to tie their shoe laces without needing help.
All those Libertarians who were saying that deregulation would be great for the economy should hang their heads in shame.
If the banks are too big to fail, we should be regulating them like public utilities.
I think the bush administration should recieve some type of medal of achievment for causing this.
Way to go dumbya.
Destroyed the entire global financial system in less than 8 years. nice.
Go McCain!!!!!!! (barf)
Yeah, it warms the cockles of my heart to see the magnamious largese of the FDIC, offering to cover 50% of the IndyMac customers who held $ in accounts that were UNINSURED.
Exactly what part of the word UNINSURED does the FDIC fail to comprehend?!? Is it the UN-, or is it the -INSURED? Clearly the former, as no one is allowed to lose in the moral climate of failure is not an option: it would give someone's ego a boo-boo if we allowed them to FAIL or LOSE.
No, the FDIC knows they're not sufficiently hedged/capitalized against further bank runs,
and we know they're just trying to keep the mob from panicking to prevent FURTHER bank runs. Hence why they put out the notice last week about how conditions are improving, and no bank, whether commercial or investment, actually had to borrow from the Fed's discount window the week before. Interpreting the Orwellian double-speak, you can expect that to actually be a bald-faced lie.
But if the FDIC offering to give 50% to UNINSURED parties is NOT a sure sign of trying to project an aura of confidence in the face of looming and growing crisis, then I don't know what is!!
@@@@
As someone who's bought and sold GLD ETFs, it is apparent to me that the price behavior of gold and other precious metals is as an inverse of $ sentiment, for the most part, i.e. the $ is rising, then gold drops.
But the thing to remember here is that the banking crisis is NOT limited to the U.S.: it is a WORLDWIDE crisis, effecting European and Asian banks, as well.
I know, insular Americans tend to think only of their OWN problems, but people really need to realize this is NOT just an American problem, but an INTERNATIONAL problem. Just as the housing bubble itself was worldwide, effecting U.K., Spain, Korea, Switzerland, Russia, Australia, France (even parts of China!), it was only because the credit bubble itself was ALSO worldwide. Even the normally-cautious, ultra-conservative Swiss bank (Credit Suisse) got caught up in this mess.
So think about it: what happens if almost EVERYONE is effected on a global basis? Is there any reason to think the U.S. $ will tank more than the others? Well, only if Americans don't know that they're not alone in the snafu, and that rising fuel prices are strangling ALL non-OPEC countries, and not just us. (FWIW, this is the payback for Bush's soldiering antics in Iraq and Afghanistan, people. We're all learning that payback for Bush's Amurican hubris is going to be a beatch, as we're in an economic war over fuel that we're ill-equipped to win).
So there's really no place to hide on an international level (unless you considered buying dinars, I guess?), and we're all going to feel the pain together.
Many nations may be forced to take steps that would ultimately deflate the value of their currency, and it's just a question of doing it in a lock-step manner such that they do it in a coordinated fashion. That's was what the G8 meeting six months ago was all about....
@@@@
But back to gold:
As stated above, the only value ANY object has is what people BELIEVE it to possess. It really is that simple, as gold has no useful intrinsic properties that will sustain life, etc. In fact, in times of real crisis, that same gold is more likely to get you KILLED, if the bad guys decide to do a home invasion and take it from you! Those gangstas walking around with the gold chains and bling, and gold caps? They're gonna be killing each other for it, no doubt. Such flagrant displays of wealth are NOT a good idea, unless you can protect what you've got!
No, you better have that gold backed up by some lead, in the form of bullets and a weapon (and I'm waiting for the price of lead and/or bullets to skyrocket).
Problem is, if we go to such a 'Mad Max' anarchistic scenario, will it last more than a couple of days (to weeks) before the National Guard is able to restore order? Hmmmm, where IS our National Guard, again? Oh, jeez: t might take more than a few weeks to get the National Guard back to America, since they're currently stretched thin, deployed all around the world protecting OTHER people's countries (your tax dollars at work, yet again)! If this means having them around to deal with a break in our social fabric is not ONE good reason to get our troops back home ASAP, then I don't know what is! OF course, NO politician could say this publicly, as it's too alarmist to utter, even to think....
Realize mob mentality is not all that uncommon after social upheaval: just think of the L.A. riots after Rodney King's verdict, a short-lived phenomenon that lasted until order could be restored by the LAPD and, uhm, the National Guard. Where are they, again? Oh, never mind. There's nothing to see here, right? :)
But try telling how short-lived the crisis was to one Reginald Denny, the hapless truck-driver caught in South Central L.A. who got his brains beat out by the street mob. In reality, this is a fairly rare, 'black swan' event, but it gets people's attention.
Anyway, I really doubt we'll see widespread crisis: most Americans are too medicated by anti-depressants, too narcotized by the MSM drivel and whatever T.V. series has them currently obsessed, to ever realize what's happening.
It is time to buy stocks folks.There will be no market crash.I would like to see a heavy day of selling so we can form a bottom.Thisis wehn smart investors get rich.
Didn't you say the same thing in March? So how's THAT approach going for you, LOL?
Isn't this much like those so-called "smart investors" who rushed in at the so-called "March Bottom" dip to scoop up great 'buys', only to have the Market cough up a lung-cookie and give it all back (and THEN SOME) in the 4-5 weeks that followed?
Catching falling knives is a fool's game, and if you think we're almost out of the woods here, then maybe you should take a look at the 10-year chart of the S&P 500 and notice the cycle is just getting started again.
Bull and bear markets are NORMAL, EXPECTED PATTERNS of PRICE BEHAVIOR and ECONOMIC ACTIVITY, and only a fool denies this! If they fail to comprehend this (as did all those "real estate ONLY goes UP!" fools), then revisions/retracements to the mean will teach them a nasty little economics 101 lesson.
Can anyone recommend a foreign bank to keep my money in non dollar funds?
Yes, there's a bank in Abu Daibi called "The Bank of Adam SlowHand Smith", and we'll convert your funds to our local currency and watch it VERY CAREFULLY as if it was our own (as it were, eh, that's just a figure of speech).
Heck, we'll do one better than the the FDIC guarantee: if we go belly-up, we'll give you DOUBLE the MONEY you deposited! With a generous offer like that, you're almost HOPING we DO go out of business, as either way, there's NO WAY you can lose!
But that's not all: we're giving away free toasters with every new account! :)
Unfortunately, we the taxpayers - especially the renters - are going to pick up the tab for the insured deposits of mortgage lenders/banks that the fdic can't cover. And, it looks like we are going to pick up some of the cost for the uninsured deposits since the feds have decided to pay uninsured indymac deposits at 50 cents on the dollar. i suppose it could be worse: those idiotic depositors could have been smart depositors and spread their excess deposits over 100k to other banks to get them fdic insured and then we'd have to pay them out in full when those banks fail!
I don't have a WAMU bank account, but I do have a WAMU credit card. How will the death of WAMU affect me?
Disclaimer: I'm a sweet, cute, dumb girl.
The Government "Solution":
Step-1 :
Print more money, devaluating the dollar even further, causing hyper-inflation.
Step-2 :
Tax the already taxed and struggling tax-paying citizen, leading to more poverty.
If the banks are too big to fail, we should be regulating them like public utilities.
_____________________________________
Natural Gas and Electricity commodities were federally deregulated 13 years ago.
Just sayin.
To Anon at July 13, 2008 3:26 PM.
You seem to be obsessed with capital gains tax issues, so here is a trick question for you. (based on a true story)
Situation:
A long long time ago a 17 year old young-man verbally agreed to clean the horse barn for his neighbor for an entire summer in exchange for two gold coins. The man signed no documents whatsoever in connection with this job. At the end of the summer he collected the coins and each coin contained 1 troy oz of gold. Fearing that his brother would find his money and steal it, the man hid them in a tin can and buried it in his father's back yard.
Shortly after turning 18 years old, the man was drafted into the Army and fought in the Korean War, where he suffered a head injury and memory loss. Returning from the war he had totally forgoten about the hidden gold coins.
His father passed away and left him the old house, so the man moved in and lived there with his wife and children for many years.
Then one day in March of 2008, the man started to break ground in the back yard to add an outbuilding to the property, when he unearthed that long forgotten tin can and its treasure.
The man was very excited as he retreived his two gold coins, because he was heavy in debt and could use the money.
He went down to a local coin dealer who paid him $1000 ea for the coins.
Two questions?
How much capital did this man gain on his gold coins?
Is any part of the $2000 that the man recieved from the coin shop taxable? If so, cite the relevant tax code and explain why?
-----------------------------
The correct answer below:
Answers. 1. Gold is capital, since the coins did not gain weight over the years, the man's capital base in them did not change. 2. The man accepted the gold in exchange for his labor and outside of any employment agreement made under any federal regs and therefore, the fruits of his labor are not taxable and are in fact legaly considered a form of exempt income.
It's not to late to earn money from this stupidity
DXDDX
didn't Keith predict this so long ago and didn't people call people like him crazies, because the US government would not let the whole ball of wax melt. There would never be another great depression. Betcha believe it now. They don't have shit for you and you are on your own.
Keith told you about the Canada, USA, Mexican dollar. He told you to get your money out of these banks (but not where to put it). Not saying every prediction was right (I think the reason the gas went up like it did was to get the rebate check money. Did Best Buy think they were going to get all that money for big screen TV's. Did China think they were going to get it shopping at their stores. No the gas companies got it because they knew you needed them to get to BEST BUY. PLease no more stimulus checks my regular paycheck can't take it)
Side issue: Didn't Keith say Barack Obama would win the nomination.
Didn't Keith and other bloggers predict all this way in advance, like 2 years ago. Nothing happens overnight although it seems like it does. It takes a while to build up and then it happens overnight. Well this is our overnight.
When people in California were ranting and raving about the price of gas a 3.00 a gallon everyone in the nation said screw you nuts and fruitcakes, weirdos and homo's get rid of the mexicans, (when Grey Davis asked Bush to help with the energy crisis Bush said he would never help Calfornia because they didn't vote for him and then it turned out to be Enron none cared because it was California next time vote for Bush) no one gave a damn, but now that they are getting a taste of it now it's lets start drilling off the coast, drill on the land here, go to Alaska. (where did all these Mexican's come from) Quit sending your dollars to Saudi Arabia, to China. Why are we competing with Them and India for gas?
When people were complaining about loosing their jobs in the manufacturing states, it was well get a job working on the computer. Get another job. (this is of course young people who don't give a damn about anyone else) They say I am 56 what else can I do. I didn't get a high school diploma but I go to work everyday and put together refridgerators. You all said bet you learned a lesson shoulda stayed in school and you coulda, woulda got a better job.
Now people are screaming (because their job doesn't look so secure)quit outsourcing jobs to India and China. A little to late after these people have a taste of the American dream in their own country.
When all those poor BLACK people in the south were doing what Americans don't want to do (who do you think were gutting your dinner table chickens and putting together your maytag washing machines (the work fairy)and America allowed all those Mexicans to come over undercut those Blacks and take their jobs (because they were doing what American's don't want to do, they came here for a better life, in addition to being very vocal about hating black people)and then allowed those Mexicans to have medical, housing, wic, welfare, an income (and these people are illegal) and then complain all black people want to do is be on welfare and get free money all the while taking away the programs and jobs to keep them off welfare and then turning around and giving it to the poor Mexicans who work hard doing what American's don't want to do. Anyway that has been over for years that is one of those racist statements white folks like to spew out Mr. Clinton signed the welfare reform act in the 90's and lifelong welfare has been over for at least 10 years and then he signed the bill to send the jobs to China. And what was left he gave to Mexicans. And then the first thing White people scream is get a job and then you won't hire black people because you don't like them.
All this is writing on the wall. It was expressed to all years ago and now it is coming to pass. One thing that is really nice about it traffic is better, the streets are more quiet without people revving up Harley Davidson up and down the street. People aren't driving up and down the street like it's Indy 500 because gas is precious. Matter of fact car traffic is down 60 percent on my very busy street. Instead of me loosing my job others are loosing theirs and I wonder when it'll knock on my door.
This is the biggest f'ing mess and there is no way out and it's all because of Bush (and greedy WHITE people) and I know Al Gore is laughing. It was all predicted.
More Outrage, read if you dare.
http://market-ticker.denninger.net/archives/512-
The-Choice-Is-Yours-Folks.html
or
http://tinyurl.com/6ork32
Answers. 3. No capital gain, since it was the dollar that slided into oblivion, not the value of the gold coins.
My, my, the gold pumping shills sure are out and about today.
How much was the Deutschemark worth in 1933? People were burning bundles of "cash" to keep warm. People were burning their currency in Argentina to cook. Since most of today's dollars are electronic, we can't even do that, so it's worth even less than the Weimar currency.
All those Libertarians who were saying that deregulation would be great for the economy should hang their heads in shame.
Uh, no.
It was government socialism and regulations like you support (the Fed, the FDIC, government mortgage banks like Fannie and Freddie) that allowed this to spiral out of control.
You propped up the crooks with a government guarantee. Surprise, they stole and now we pay.
In a private, deregulated system without government guarantees, bad banks would go under quickly and people wouldn't make deposits in them, and this mortgage bubble never would have inflated in the first place.
The chimpanzees watching MTV, VH1 and BET are too busy with their bling to care about the banks. Beside, none of them have any money to lose in the banks. As long as the government checks and WIC cards keep rolling in, they can keep popping out the little chimps. Watch for the riots when the government checks can no longer buy them a months worth of food
Keith, you don't understand how this really works.
Doesn't matter what the FDIC has. Fed will conjuer up more out of thin air.
You guys don't understand that money really does grow on trees, and it is nothing but a number that can be added,subtracted, or exponentionally increased at the drop of a hat
From CalculatedRisk quoting FDIC:
"IndyMac is only one of 8,494 depository institutions operating throughout the country and represents only .2 percent of banking industry assets"
So they have enough buffer to save 1%, and IndyMac could consumer up to 1/5 of that??? :-(
It was government socialism and regulations like you support (the Fed, the FDIC, government mortgage banks like Fannie and Freddie) that allowed this to spiral out of control.
You propped up the crooks with a government guarantee. Surprise, they stole and now we pay.
In a private, deregulated system without government guarantees, bad banks would go under quickly and people wouldn't make deposits in them, and this mortgage bubble never would have inflated in the first place.
We had exactly what you advocate back in the 1920s. It was one of the principle causes of The Great Depression!
We had exactly what you advocate back in the 1920s. It was one of the principle causes of The Great Depression!
----------------
Spin, Spin, Spin!
The great depression was created by the Fed to strip the people of their GOLD, and increase the power of the Big Bankers.
The sheep got slaughtered then, and are being slaughtered again now!
GOT GOLD?
OK, one more time for the people who don't get it:
Cheap Energy is Wealth
When Benny and the Inkjets fire up the printing press again expect all tradable dollarized commodities to increase just like what happened in the last 6 months. However hyperinflation reduces purchasing power so people will focus more on discretionary spending. Since food and energy are among the most essential items expect these prices to rise and hold above others (gold et al). Hence oil will be king.
-Mike
http://www.cnbc.com/id/25664376
Richard Bove at Ladenburg Thalmann has a different take on who may be next. In a report, he looks at all the FDIC-backed institutions, comparing each bank’s bad loans to its overall assets through two ratios. First, he divides the “non-performing assets” of an institution--bad loans, late loans, foreclosed assets--by all of its outstanding loans. “A radio above 5 percent suggests danger.” The overall industry ratio is below 2 percent. That’s good news. But it’s not so good for individual names like Downey Financial
DOWNEY FINL CORP
DSL
1.69 -0.37 -17.96%
NYSE
Quote | Chart | News | Profile
[DSL 1.69 -0.37 (-17.96%) ], with a 13.86 percent ratio (on Sunday, Downey Financial reported its non-performing assets were over 14 percent, up from 1 percent a year ago). Other names in the “danger zone” are Corus Bankshares
CORUS BANKSHARES INC
CORS
3.50 -0.06 -1.69%
NASDAQ
Quote | Chart | News | Profile
[CORS 3.50 -0.06 (-1.69%) ] at 13.18 percent, Doral Financial
DORAL FINANCIAL CORP NEW
DRL
13.32 0.48 +3.74%
NYSE
Quote | Chart | News | Profile
[DRL 13.32 0.48 (+3.74%) ] at 12.82 percent, FirstFed Financial
FIRSTFED FINANCIAL CORP
FED
4.91 -0.63 -11.37%
NYSE
Quote | Chart | News | Profile
[FED 4.91 -0.63 (-11.37%) ] at 6.73 percent, Oriental Financial
Bell Financial Group Ltd
BFG
1.055 -0.05 -4.52%
ASX National
Quote | Chart | News | Profile
[BFG 1.055 -0.05 (-4.52%) ] at 6.12 percent, and BankUnited Financial
BANKUNITED FINANCIAL CORP
BKUNA
0.77 -0.02 -2.53%
NASDAQ
Quote | Chart | News | Profile
[BKUNA 0.77 -0.02 (-2.53%) ] at 5.36 percent.
Then Bove ran a second set of numbers dividing a bank’s non-performing assets by its reserves plus common equity. “A ratio about 40 percent is the danger zone.” This is where it gets interesting. You have all the same names as listed before, PLUS WASHINGTON MUTUAL
WASHINGTON MUTUAL INC
WM
4.95 -0.30 -5.71%
NYSE
Quote | Chart | News | Profile
[WM 4.95 -0.30 (-5.71%) ], which comes in with a ratio at 40.6 percent. Bove calls this being “on the edge” of danger but not quite there yet.
You know the headline is unfair and misleading. Having already gone through a FDIC closure last year. No FDIC money was used except in administration costs for closing the bank. There were enough assets at the failed bank to cover all the <100k depositors. The >100k depositors are the ones that take it on the chin not the tax payers. UNLESS... A bank is so horribly insolvent that FDIC has to start paying out and making good on the <100k depositors...
talks of JP Morgan buying Wachovia this morning...
Gonna be another wild ride for the market today.
Lest we forget:
America is the land of the FREE.
FREE FREE FREE FREE FREE FREE FREE FREE FREE FREE FREE. We won't pay a dime. It's just government printing money and giving it away and moving it around...All Free.
Now, America the home of the brave. I gotta think on that one. Brave isn't something I see very often.
I believe we need a modern-day equivalent to the Boston Tea Party.
One other unrelated thought...When Barry talks about change we can believe in, he's talking about money...spare change...I guess he thinks we have lots of it.
Anon said:"The great depression was created by the Fed to strip the people of their GOLD, and increase the power of the Big Bankers.
The sheep got slaughtered then, and are being slaughtered again now!
GOT GOLD?"
---
I dont believe the government orchastrated the Great Depression to seperate people from their gold.
However, here's a true story:
A good friend of mine who is now 75 years old told me a story about her father who was the Lloyd A Wise-owner of the Oldsmobile Dealer here in Oakland, CA. She told me that during the Great Depresssion the government ordered everyone to turn in all their gold coins. My friends father (Lloyd A Wise)did this, because he like everyone else, were afraid not to. And, because it was the "American" thing to do, She said.
Well... coincidently, after all of America turned in their gold coins, the price of gold doubled.
Remember, government is only looking after their best interests - not yours.
"In a private, deregulated system without government guarantees, bad banks would go under quickly and people wouldn't make deposits in them, and this mortgage bubble never would have inflated in the first place."
BA HA HA HA. Snort. That's a good one. And, uh, in this private system, how would customers possibly know which banks were just thieves until they left town with their money...or loaned it out to their friends' badly conceived projects at below market rates? You are wishing for the 80s S&Ls to return, you know. How'd that work out again?
'Scuse me, I need a tissue from laughing so hard at this notion that zero transparency, no consumer rights, and no regulatory oversight would suddenly transform a bunch greedy bastards into saints.
By the way, you CAN live in a Libertarian paradise, so why don't you? Somalia's fine citizens have been free of all government intervention for 17 years. It must be heaven.
IS IT TOO LATE TO FIGURE THE TAXATIONS ON FORCED BENIFICARY ACCCOUNTS PAYOUTS?
"I have been obsessing about gold when I go to sleep and think about it when I wake because our economy's situation is so bad."
Hook, line, and sinker!
Signed: Your local gold dealer.
"I am 90% certain that there will be a market crash on Monday."
Hook, line, and sinker!
Signed, Jim Cramer (clicking Buy)
"those idiotic depositors could have been smart depositors and spread their excess deposits over 100k to other banks to get them fdic insured and then we'd have to pay them out in full when those banks fail!"
Like my grandfather. He makes a monthly trip to the 30 banks he does business with. Any account over 100K gets nipped to 95K. He picks nice days to make his trip so he can enjoy getting out of the house.
Oh, BTW...he was a contractor during the Depression. He said the weirdest thing is that it was hard to find a job, but if you knew how to build there was plenty of work.
US Currency printing presses will take up the slack. You think I'm joking? I'm not.
And, uh, in this private system, how would customers possibly know which banks were just thieves until they left town with their money...or loaned it out to their friends' badly conceived projects at below market rates?
Uhhh, dumbass, the socialist system you're advocating allowed exactly the same thing!
Angelo Mozillo left town and left depositors holding the bag.
The difference this time is, thanks to your socialist demands, the entire country is forced to pay for a bailout, rather than the foolish people who "invested" in IndyMac CDs (and who deserved to lose their money for their poor judgment).
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