fccool Posted February 9, 2009 Share Posted February 9, 2009 For all of the people who think that "alarmists" are exaggerating... here's one for you straight from the horse's mouth. Of course, if we were told that, then you'd have the mother of all bank runs... and the financial system would have came down. Quote Link to comment Share on other sites More sharing options...
Amelia Posted February 10, 2009 Share Posted February 10, 2009 So what was happening on that day to cause such a HUGE run so fast? Quote <p><span style="color:#0000FF;"><span style="font-weight:bold;"><span style="font-style:italic;">"Do not use harmful words, but only helpful words, the kind that build up and provide what is needed, so that what you say will do good to those who hear you."</span></span> Eph 4:29</span><br><br><img src="http://banners.wunderground.com/weathersticker/gizmotimetemp_both/US/OR/Fairview.gif" alt="Fairview.gif"> Fairview Or</p> Link to comment Share on other sites More sharing options...
fccool Posted February 10, 2009 Author Share Posted February 10, 2009 Money market accounts are alternative to the savings accounts or CDs. These give higher interest rate returns, thus many people like myself prefer these in place of savings... although these do pose risks because they were not guaranteed by the FDIC beyond 100k. So, when the things started going south and banks began failing left and right... people got very nervous and began transferring these money elsewhere. This is my guess on what really happened, but without media doing its job... it's hard to tell. Paulson and Bernanke could have been lying in order to get what they wanted... 700 bailout for banks. They have been lying before on numerous occasions. Quote Link to comment Share on other sites More sharing options...
Amelia Posted February 11, 2009 Share Posted February 11, 2009 Possibly I misheard/misunderstood what was being said; but I thought he said that this single day run not only took everyone off guard but caused the problem with the banks? Quote <p><span style="color:#0000FF;"><span style="font-weight:bold;"><span style="font-style:italic;">"Do not use harmful words, but only helpful words, the kind that build up and provide what is needed, so that what you say will do good to those who hear you."</span></span> Eph 4:29</span><br><br><img src="http://banners.wunderground.com/weathersticker/gizmotimetemp_both/US/OR/Fairview.gif" alt="Fairview.gif"> Fairview Or</p> Link to comment Share on other sites More sharing options...
Kountzer Posted February 11, 2009 Share Posted February 11, 2009 Then there is the idea floating out there that the Pope/Jesuits control the fed bank, and have done so for decades, centuries, and have used the funds to their benefit. DB Quote I prayed for twenty years but received no answer until I prayed with my legs. Frederick Douglass Link to comment Share on other sites More sharing options...
fccool Posted February 11, 2009 Author Share Posted February 11, 2009 Possibly I misheard/misunderstood what was being said; but I thought he said that this single day run not only took everyone off guard but caused the problem with the banks? The problem with the banks is that in US (and around the world) the banks are fundamentally insolvent. They operate on basis of a ponzi pyramid scheme, and have somewhere near 10% of customer deposits on hand. The rest is floating around in form of loans. So, even if fraction of customers begin withdrawing money at fast pace... the banks would not be able to fulfill the requirement without borrowing money from Fed. This is the fundamental flaw in the world monetary system that can potentially bring it down at any moment really. The only thing that keeps it going, is the confidence of the depositors that everything is going to be OK, and banks will fulfill the deposit promises. Quote Link to comment Share on other sites More sharing options...
carolaa Posted February 21, 2009 Share Posted February 21, 2009 But don't banks have a limit on how much money a customer can withdraw on any given day? Quote Link to comment Share on other sites More sharing options...
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