I'm hoping my bank is 'too big to fail'...
This thread seems to be confusing two different things:
—Bank liquidity
—Bank solvency
Liquidity is do you have enough cash or a way to get enough cash to pay depositors when they demand money.
Solvency is the state of the bank’s balance sheet, the assets vs the liabilities.
Liquidity matters to depositors.
Solvency matters to shareholders.
The FDIC is insurance for liquidity up to 250,000 per account. The FDIC is technically insolvent but it highly likely Congress would bail them out if they ran out of cash.
Any small or medium sized bank with significant office building holdings is probably insolvent—but they are not forced to face reality until bank examiners show up and crunch the numbers. At that point the federal regulators can order them closed if they wish. If that happens the depositors have their money put in another bank.
Why do you think that the State of Texas moved their gold reserve back to Texas from bank in NY?
This is not a new problem, it is only worse than it was before.
When Texas moved the reserve, they did not transfer the gold from NY. They sold it and bought known quality to replace it.
Very Very smart move. Like him or not, Rick Perry brought that about.
There was a proposition on the GOP Primary ballot that took place last Tuesday.
PROPOSITION 7
The Texas Legislature should establish authority within the Texas State Comptroller’s office to administer access to gold and silver through the Texas Bullion Depository for use as legal tender.
Yes — 8,351 (77.68%)
No — 2,400 (22.32%)
Why do you think that the State of Texas moved their gold reserve back to Texas from bank in NY?
This is not a new problem, it is only worse than it was before.
When Texas moved the reserve, they did not transfer the gold from NY. They sold it and bought known quality to replace it.
Very Very smart move. Like him or not, Rick Perry brought that about.
There was a proposition on the GOP Primary ballot that took place last Tuesday.
PROPOSITION 7
The Texas Legislature should establish authority within the Texas State Comptroller’s office to administer access to gold and silver through the Texas Bullion Depository for use as legal tender.
Yes — 8,351 (77.68%)
No — 2,400 (22.32%)