Global Stealth Bank Run a Real Possibility
There is no more room for denial. We all have to admit that we are in a full-blown solvency and credit crisis where no one trusts anybody anymore. Hoarding liquidity that is injected by central banks has become the only game in town.
In plain English, this means that all this central bank liquidity is going practically exclusively to banks and major broker dealers. The rest of the so-called “shadow banking system” is freezing to death as the credit transmission mechanism is blocked.
[…]
And if all that bad news wasn’t enough, the actual situation is the mother of all nightmare bank runs because it is a silent, cross-border bank run that is now under way. Foreign banks are worried about the solvency of U.S. banks and therefore are reducing their exposure.I don’t want to sound pessimistic. I only want to be realistic, but if this stealth (“stealth,” that is, for Main Street) bank run accelerates, a total meltdown of the U.S. financial system could occur.
On a happy note, The Donald thinks oil prices should plummet.
Your blog does not render using the Google Chrome browser. Please fix this if you can. Thanks!
Nan,
Fix GOOGLE BETA FIRST..
Im wondering..
For those that know more then I..
Havent they BAILED out the banks or CORPS before??
WHY Help the child that has made the mistakes?
Iv told my friends, If you need help and you were doing RIGHT, I will be there.
If you GOT YOURSELF into the fix..Because you did something WRONG.. There isnt MUCH I CAN HELP..
If this goes thru, I ask EVERY person to PULL their money, and DUMP the Credit cards.
You will see what happens when 1/2 of the USA HATES BANKS.
If they would give those in the LOWER portions of the economy the MONEY, it would RUSH to the top of every corp, and then the BANKS would get it.. It would FULLy stimulate parts of the economy.. $1000 for !/2 the USA would be ALOT cheaper.
Do you really believe what these obscenely mega rich bastards are saying? The world is not going to end without credit provided by banks. It’s a big fat cat lie. The current flucked up system will just shift, the greedy crap will implode, that’s all. No bread lines. No great depression. Some belt tightening, fewer vacations, no new appliances, and no more McMansions, and even fewer green guzzling payments on hybrids for a while….until things sort out. I mean really, what would be so bad about watching people’s pensions dry up and seeing them go back to having real jobs. The GNP would soar!
#3: Actually, because lots of companies depend on credit to get by day-to-day rather than having cash reserves to do so (so-called “lean and mean” types), it *will* affect main street if credit seizes. Any fiscally responsible companies will, hopefully, stick as much of their current “extra” cash into savings and/or cash to try and get a decent reserve in a hurry, but those that can’t will definitely be in trouble. The ones with the most risk are probably banking, airlines, and heavy industries, which usually relies heavily on borrowing for day to day business operations.
Time to panic? Probably not. But it’s definitely gonna be painful…
I wonder if this is what the decline of the Roman Empire looked like.
This has got to look good on Nancy Pelosi’s resume:
– Destruction of Western Civilization
– Ruin of Middle Americans Retirement
For me a depression would be a welcome rest. I haven’t had a real vacation (meaning more than a day of here and there) since 1998. I also wouldn’t mind having my car repossessed so I didn’t have to make the payment.
#2 ECA speaks the EMBARASSING TRUTH !!! Handouts to ORDINARY PEOPLE LIVING FROM PAY CHECK TO PAY CHECK DO MORE TO PUMP UP THE ECONOMY AND TAX REVENUES than HANDOUTS TO OVERPAID CEOs !!!
Too bad the American dollar is going up in all of this. Makes your argument shit.
Today is a dead cat bounce. Wait till tomorrow, when the Hedge Funds have all of their dirty laundry out for all to see.
6,
YOU STILL must make the payments..
They resell the vehicle, and you are charged the difference..
BETTER the SELL the vehicle BEFORE, and PAY back the loan.
These corps OVER EXTENDED..and over paid personel.
The money WENT some place…as they dont have it to BACK them up.
THAT isnt a BANKING system. Thats a GAMBLER.
thats like you SPENDING more money on a TOY(expensive personel) , and borrowing money (to make ends meet/money from OTHERS because they think you are good for it, and they might get some interest), as you THINK your paycheck will cover it. IT DIDNT/hasnt.
I will BET, that if they took the wages of the TOP 10%, they would be solvent.
Foreign banks are eventually going to pull their money out anyway, because the current “vendor financing” program the US is under is unsustainable. The only question is when the plug is pulled and how large the crater will be at that time. It does us no good to keep kicking the can down the road.
@ECA
Blood meet turnip.
#4 “Actually, because lots of companies depend on credit to get by day-to-day rather than having cash reserves to do so (so-called “lean and mean” types),”
Correction; “lean and stupid” types.
12-13…
CORRECT…
The foreign corps WANT the USA to get a boost..
THEN Jump out…