Is THE Crash Coming? Northern Rock Bank in England has a huge BANK RUN!
DriftingByTheStorm
Posts: 8,684
U.S. Banks Brace for Storm Surge as Dollar and Credit System Reel
careful, Jlew. This article is from Prisonplanet (by way of Counterpunch)
However, it is chock full of real honest to god facts and some espousing of premonition.
Bottom line:
England is in economic turmoil (remember that when the Fed bailed out the economy with 30billion a month ago, Europe made that look like nothin with 130billion in free money) ... and one of their banks, Northern Rock Bank, is finding itself insolvent and incapable of repaying deposits to its creditors.
UH OH!
You think that could spread here?
Read the article.
Bank runs were supposed to be a thing of the past,
the LONG gone past ...
... thats why we have the fucking Federal Reserve [cough... THIRD CENTRAL ... cough] Bank ... and why we don't have a damn gold standard anymore.
The Fed prints "free" money at will.
So how are we seeing bank runs at all any more?
Well.
Read the article.
This sucks.
:(
careful, Jlew. This article is from Prisonplanet (by way of Counterpunch)
However, it is chock full of real honest to god facts and some espousing of premonition.
Bottom line:
England is in economic turmoil (remember that when the Fed bailed out the economy with 30billion a month ago, Europe made that look like nothin with 130billion in free money) ... and one of their banks, Northern Rock Bank, is finding itself insolvent and incapable of repaying deposits to its creditors.
UH OH!
You think that could spread here?
Read the article.
Bank runs were supposed to be a thing of the past,
the LONG gone past ...
... thats why we have the fucking Federal Reserve [cough... THIRD CENTRAL ... cough] Bank ... and why we don't have a damn gold standard anymore.
The Fed prints "free" money at will.
So how are we seeing bank runs at all any more?
Well.
Read the article.
This sucks.
:(
If I was to smile and I held out my hand
If I opened it now would you not understand?
If I opened it now would you not understand?
Post edited by Unknown User on
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Comments
Infact house prices have just started to follow the american trend of dropping.
The economy has polarized to the point where the wealthiest 10% now own 85% of the nation’s wealth. Never before have the bottom 90% been so highly indebted, so dependent on the wealthy.
Fears of dollar collapse as Saudis take fright - Telegraph UK
Short summary: Saudi Arabia did not lower its rate in step with the Fed yesterday, which is a subtle indication of a trend away from dollar hegemony.
If the Saudis unpeg from the dollar, it could be the start of catastrophy.
More 'good' news:
China threatens 'nuclear option' of dollar sales - Telegraph UK
Either through use as a political tool to counter US pressuer, or by force if their own currency rises so high against the dollar that China is 'forced' to sell it's gianormous surplus of dollar reserves, China could be in danger of a massive dollar sell off.
Again. We could be FUCKED!
If I opened it now would you not understand?
Now thats a good plan.
The economy has polarized to the point where the wealthiest 10% now own 85% of the nation’s wealth. Never before have the bottom 90% been so highly indebted, so dependent on the wealthy.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/09/19/bcnsaudi119.xml&CMP=ILC-mostviewedbox
While the collapse of the dollar may not be imminent we are definitely is a really shitty situation here. Just today the Canadian dollar matched the US dollar (.99 to 1.00) for the first time in 31 years. The US dollar is in complete free fall compared to the Euro (exchange rate is 1.40 to 1.00) and we could see an even wider gap of greater that 1.50 to 1.00 by the first quarter of 08.
Banks typically only hold ~10% of the money that is deposited to them, with the rest being out on loan to customers. That is the fractional reserve system.
A bank run is when people fear a bank is out out money, and many people try to withdraw their savings at the same time. The bank will not have enough money to pay everyone. These were very common up in the 1800s and early in the 1900s.
@Drifting
The Federal Reserve is in the US, while the bank run occured in the UK. Do you expect the US banking system to cover England or something?
Our chief economist with Ameriprise thought it was a terrible move. I read several that thought it was bad.
The economy, corps, etc. aren't the main problem. Our lifestyle choices are. Cars, Houses, Credit Cards we can't afford. Then our gov't loaning out dollars like pfizer gives out viagra. STUPID STUPID, obviously IMO....
EV
I agree!
Everybody! Withdraw everything from your bank! Now!
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Not at all.
But the ECB is the European eqivalent from what i understand.
I referenced the Fed twice in my post.
Once to illustrate the intensity of the "scare". Namely that while America bailed out it's system with 30 billion, Europe was four times worse with 130billion ... and i think that is an unexchanged comparison so it is even worse!
The second is where i think i was unclear.
I simply ment that NO economy (so far as i know in the west at least) is on a gold standard anymore, and we all print "free" money in the sense that it is fiat currency with no backing. I was just curious how there could be a bank run in a system where people are just withdrawing paper that can easily be printed.
"Bank run" historicaly indicated a run on banks to exchange "notes" (paper money guarantees of REAL money, which are now worthless pieces of paper) for gold or silver.
Since we have disconected the system from REAL money and all that is left are worthelss unguaranteed, unbacked notes, it is really funny that we are having bank runs.
ON GOLD:
Last month when i freaked out and wanted to sell my stock for gold (and didnt. boo hoo), gold was at $645 an ounce.
TODAY GOLD STANDS AT $730 an ounce.
We have seen a ONE HUNDRED DOLLAR spike in gold prices in one fucking month.
That simply means people are bailing on paper assets and the financial markets, to put their money in what some of you around here deem to be a "silly commodity. just like any other commodity."
If it is so silly, it must be real scary that the value has jumped $100 in 30 days. It means a whole lot of people are buying the shit. A whole lot of people who are probably smarter than you think shit is hitting the fan.
Ron Pauls Address In The Congressional Record Of 1981 Regarding "The Five Myths About The Gold Standard" - a thoroughly excellent read
If I opened it now would you not understand?
Lol.
I hope, for the sake of humanity, that you are correct.
Unfortunately, i get the feeling you will see gold top $800 by years end, if not sooner, and continue a slight rise ...
I think we are going to see massive shit hit the fan by November\December.
I mean unthinkably massive shit.
:(
If I opened it now would you not understand?