Is a 1930s-style bank run on the horizon?

The Free Thought Society ^ | 03-11-2008 | TragicHipster

[ClearCase_guy]

Essentially, this a Death Match for the central bank. The last time the Fed dropped rates twice in 10 days was the Panic of 1914. That year the New York Stock Exchange ceased trading for four and a half months.

Worst economy since 1914!!!!

[Clara Lou]

Fear mongerer.

[PHLSyndicate]

>fear mongerer

I forgot, the real thing to fear is terror. Nothing is wrong with the economy. Just keep moving along.

[Inyo-Mono]

Well, at least we can blame this on the Democrats when they take office later this year.

[RobRoy]

Maybe the most “useful” line in the story:

“Given the speculation in commodities and panic buying of contracts in a manner that is inconsistent with demand, I sense smart money is quickly moving to tangible assets (like gold). If we have a sudden crash in prices of commodities, I’d interpret that to mean investors are liquidating anything they possibly can in order to meet obligations and the Fed’s attempt to inflate is failing. Or, prices could keep precipitously rising as an early warning sign of pending monetary inflation brought on by the Fed’s policies. We’ll be looking at 10% monthly inflation in 12 months or half of all banks will be out of business. Or nothing will happen. Either way, we’ll have a much better idea of where things are going soon enough.”

[murphE]

ping

[dragnet2]

Well, at least we can blame this on the Democrats when they take office later this year.

Huh? Who do you think has controlled Congress, the Senate and the White House in the past 6 plus years?

[Nervous Tick]

>> So, let’s say you put up $10 billion as colatoral

Sorry. I have a really, REALLY tough time swallowing “financial wisdom” from someone who can’t even spell “collateral”. ROFL!

[NeoCaveman]

We'll be looking at 10% monthly inflation in 12 months or half of all banks will be out of business. Or nothing will happen. Either way, we'll have a much better idea of where things are going soon enough.

He covered all the bases so he can't be wrong. I got to respect that.

[NeoCaveman]

Worst economy since 1914!!!!

Wilson's fault!?!

[Clemenza]

Nah, more like a return of polyester, Pet Rocks, and a reunion of the Starland Vocal Band. Ben Bernanke is Arthur Berns’ long lost love child.

[KantianBurke]

“Well, at least we can blame this on the Democrats when they take office later this year.”

What a disgusting sentiment. Plenty of folks will be ruined, the economy will collapse but hey GO GOP!

[ikka]

We'll be looking at 10% monthly inflation in 12 months or half of all banks will be out of business. Or nothing will happen. Either way, we'll have a much better idea of where things are going soon enough.

Um, OK then, thanks a lot...

[Clara Lou]

We'll be looking at 10% monthly inflation in 12 months or half of all banks will be out of business. Or nothing will happen. Either way, we'll have a much better idea of where things are going soon enough.
Your author is a real rocket scientist, complete with 'colatoral.' Have you heard? My latest prediction is that the world as we know it will end in 2012, or or it won't. Guaranteed, my prediction is 100% correct.

[Toddsterpatriot]

He covered all the bases so he can't be wrong. I got to respect that.

What will stocks do? Fluctuate. LOL!

[RobRoy]

>>He covered all the bases so he can’t be wrong. I got to respect that.<<

I think that is because he is not actually making a prediction. He is trying to educate people to be able to read the “signs of the times” over the next year and make their own predictions. Especially his line about what it may mean if the price of commodities like gold begin to collapse, bubble-like.

[Toddsterpatriot]

We'll be looking at 10% monthly inflation in 12 months or half of all banks will be out of business. Or nothing will happen.

Either the Cubs will win the World Series this year....or they won't. Or maybe an asteroid will destroy the Earth and no one will win.

Either way, we'll have a much better idea of where things are going soon enough.

LOL!

[ctdonath2]

Deflation Death Match & What Now? Essentially, this a Death Match for the central bank.

Ah, so now that Celebrity Deathmatch is passee, now we move on to economists? or is this some secret Halo level I'm not aware of?

[ctdonath2]

If I have $10B to put up as collateral (even allowing for a tidy salary for my new full-time proofreader), a bank run isn’t going to be much of a concern for me.