Tuesday, September 22, 2009
Breaking News: FDIC Announces Imminent Bankruptcy
The FDIC's plan to borrow from banks it insures won't come as a surprise to readers of this blog:
http://www.nytimes.com/2009/09/22/business/22bailout.html
When's the last time your insurance company asked to borrow against your totaled car so they could pay for it? You can't make this stuff up. The strongest leg down in the total financial collapse of the United States is underway. Hold on.
One year of emergency cash held at home or in relatively liquid U.S. Treasuries/C of I is a must.
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Market will trudge higher in nominal terms on this news. too bad DXY is collapsing so it is not a real gain.
ReplyDeleteIf gold and silver have been rising on fears of the continued financial crisis, how are they going to decline if this happens?
ReplyDeleteWon't more people want to store their money in gold and silver?
Are u kidding me? So what are the "terms" that the "healthy" banks will charge the taxpayer to save themselves?
ReplyDelete"If gold and silver have been rising on fears of the continued financial crisis..."
ReplyDeleteSilver and platinum are down substantially from peak. Gold is the only holdout, trending down but rising to virtually sideways, but it is about to join the great asset deflation that's well underway.
something tells me that since banks are not being forced to delever, and that Bernanke will print until there is no end in sight, that the DXY will continue to go down. Now, this shouldn't matter since everything is deflating, but it does matter if the stock market and gold are trading inversely to the dollar's relative value versus other currencies. So maybe the whole system will crash with the Dow at 20K, gold 5K, but paper money will be worthless.
ReplyDeleteGlad you're back, FDR
ReplyDeleteWhen does this all come to fruition? My shorts are getting clobbered by Cramer. If I'm going to lose money it is not going to be to the genius with the e-trade account trading from starbux. This equity rally, is this part of what doom looks like? Would I be better off waiting for dow 11000 around halloween to short or should I just cash out and barricade myself in the corner of my shower with a shotgun, canned goods, and cash?
ReplyDeleteGolman Sachs not only stole money from us taxpayers and every other trader out there by frontrunning, they've now stolen 25k from me due to me shorting them too early. What are these people at Goldman, gods or something?
ReplyDeleteMarc Faber was on Bloomberg today and said the US government will probably fail in 5 to 10 years. A nice twist to go with your post.
ReplyDeleteYou mention a year's supply of cash [USD] and/or liquid treasuries. In terms of us overseas readers, i assume that the above (USD) and local currencies (GBP or Euro, say) are required but in what proportion ?
ReplyDelete