Hi Guys...
Look, the banks are bankrupt. They can't even accept large value checks anymore. Don't believe me, read the market traders.
http://www.elitetrader.com/vb/showthread.php?threadid=116240
I can provide other ones if you want.
Lowering the interest rates is only going to suck up more of the very little capital that is left. It's going to be just like last August/Sept, when the credit market locked up. And it's doing it for the same reasons: Nobody trusts anyone else anymore. Everyone lied so much for so long that nobody believes the ratings, the insurers, public auditied books, nothing. Welcome to Capitialism of the 1800's. Huzzah!
The underlying trust in the system is gone.
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So should we be bying gold and hording US dollars? Did you see the GATA article?
Which GATA article? If you like PMs, go ahead and get them. Me, I'm a food, tools, and currency guy. I think the banking system is on the verge of seizing up.
hi john tony here (tonjg). I think you struck a point regarding the lack of trust. It's not just in the upper echelons either, it goes all the way down to the consumer. The integrity of our society as a whole has sunk and slowly but surely it's becoming more accepted that people lie. Politicians especially.
John,
Is a credit deflation the same as a currency collapse, like Argentina and Wiener Germany. I guess what i'm asking is since the Banks are already insolvent and the dollar is sinking, this trend will likely contnue.
Are you talking about foreign currency or US dollars and are you expecting a dollar rebound?
I like food/spices also, it is rising faster than PM's.
Quit the panic. In the 1980's Citibank was in the exact same position. Basically bankrupt. But lets define bankruptcy. Having no money and no one will lend you any more. Well something is missing here because the governments of the world will lend the banks all the money they need. We see it happening now. Thus the banks cannot go bankrupt. However, there will be a prolonged credit crisis and a prolonged slow growth economy. If you want a doomsday scenario, then extrapolate it way out that this extended borrowing to the banks (i.e. printing more money) will put the currency value under pressure. But people, these money people are all in this together so that if the US cannot print any then other governments will step in to lend. We see that happening too. Then there is the legal way to issue bonds to raise cash, that is a third avenue. Take a deep breath people and quit the panic.
John,
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Quote
the illuminati bloodline family the oppenheimers under the Rothschilds own the diamond and gold deposits/mines that the africans depends on, they own the fronts that control the government and the media.
Africa has enough food to feed the world yet the people of africa are starving?
Do some research on the Rothschilds and let us know what you find!
The future of America and the Free World means ending the FEDERAL RESERVE and bring to the attention of millions of Americans how the ($400Trillion) Rothschild'ss family picks our Presidents, makes our economic and foreign policy and are responsible for drugs in Americans and the hunger in Africa.
The Rothschild's empowered Hitler and gave us the Patriot Act, and they are the reason we are in War, they profit form loaning money to both side, plus they have shares in Goldman Sacs and Fox News!
Let's call on our leaders to stand up and save our country and prosecute them! God Bless America. They killed LIncoln and JFK and want to take away our liberties! Look up Secret Rulers!
Sidebar: Impact on Zions Bank
Zions Bank has not been active in subprime or other nontraditional types of residential mortgage loans and has little or no direct exposure to those markets. Furthermore, we rely on traditional consumer and business deposits rather than wholesale funds for the majority of our funding needs, and the current credit market problems have not adversely impacted funding of Zions Bank.
Most highly regulated commercial banks and savings institutions have simply refused to make the sorts of risky loans that are at the heart of the issue. These financial institutions adhere to the fundamentals of safety and soundness, sound underwriting standards, due diligence and capital standards.
Though Zions Bank’s loan portfolio is virtually unaffected by the current subprime mortgage mess, we, along with many other federally insured banks and savings institutions, are able and willing to be part of the solution. We are well-capitalized and have a diverse source of funds, including deposits and Federal Home Loan Bank advances. We are in a solid position to keep mortgage dollars flowing to creditworthy borrowers and communities and, in so doing, help prevent today’s market turmoil from becoming a housing crisis.
This is from their newsletter.
Is there enough conservative banks out there to solidify the problem?
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