You don’t have to go into the whole mess of CDS to realize that our banks are insolvent. We’ve always known they were. After all, why is it that we’re constantly afraid of bank runs? Because they none of them cover their demand deposits with currency on hand. That alone makes them bankrupt, and it is nothing but the people’s faith that they’re not going to be the ones screwed if and when the system fails again that keeps the industry afloat.
This, of course, is not a moral crusade on my part. I’m just sayin, is all.
They should hold 100% of their deposits in the vault?