Bank Runs Feared

[dellinger63]

You've been warned and are a fool if you stay w/Citigroup.

http://www.prisonplanet.com/citigrou...thdrawals.html

[Riot]

You have heard of the Federal Deposit Insurance Corporation, right?

[dellinger63]

Originally Posted by Riot

You have heard of the Federal Deposit Insurance Corporation, right?

You just don't get it. In your opinion the economy has hit bottom and we're coming back. Get a clue!

[SCUDSBROTHER]

You read the comments on that site? That's a wild bunch there. Bringing up Bible Prophecy, Sodomites etc. They make the DT Conservatives look down right sedate.

[dellinger63]

Originally Posted by SCUDSBROTHER

You read the comments on that site? That's a wild bunch there. Bringing up Bible Prophecy, Sodomites etc. They make the DT Conservatives look down right sedate.

all that's missing is the Turks

[Riot]

Originally Posted by dellinger63

You just don't get it. In your opinion the economy has hit bottom and we're coming back. Get a clue!

Well, thanks for trying to tell me what I think, but in my opinion the economy has hit bottom, but it will be a markedly longer than usual haul back, and there is still a real possibility of a significant double dip.

That said, the "Move your money" campaign (move out from the big, bailed out banks) appears to have had some success.

[dalakhani]

Okay, I am going to feed into the hysteria. Bank runs are indeed very possible...if the government takes off the respirator.

Banks can make money right now because of the steep yield curve. Consumers and businesses can still make payments on adjusting rates because the adjustments are in many cases driving payments DOWN. Now what happens if the government stops intervening and yields start to climb? It doesnt take a rocket scientist to see how the dominoes will fall.

The US will do everything in its power to keep rates low for as long as the eye can see. A rise in rates will be devastating to the economy regardless of what bernanke or anyone says. We are buying time right now...and we need a lot of it to fix this mess.

So has the economy hit bottom? I think there is validity to the statement that we were as close as can be in the fall of 2008 without it completely toppling. Could we be there again?

Rates are going to have to stay low and the government is going to keep having to play a large role in our economy. Unless of course there is a better plan. If so, Im all ears.

[Riot]

Originally Posted by dalakhani

Now what happens if the government stops intervening and yields start to climb? It doesnt take a rocket scientist to see how the dominoes will fall.

Hey, finally a free-market economy, just as many here want

[randallscott35]

Originally Posted by dalakhani

Okay, I am going to feed into the hysteria. Bank runs are indeed very possible...if the government takes off the respirator.

Banks can make money right now because of the steep yield curve. Consumers and businesses can still make payments on adjusting rates because the adjustments are in many cases driving payments DOWN. Now what happens if the government stops intervening and yields start to climb? It doesnt take a rocket scientist to see how the dominoes will fall.

The US will do everything in its power to keep rates low for as long as the eye can see. A rise in rates will be devastating to the economy regardless of what bernanke or anyone says. We are buying time right now...and we need a lot of it to fix this mess.

So has the economy hit bottom? I think there is validity to the statement that we were as close as can be in the fall of 2008 without it completely toppling. Could we be there again?

Rates are going to have to stay low and the government is going to keep having to play a large role in our economy. Unless of course there is a better plan. If so, Im all ears.

Let people continue their false sense of FDIC etc....Electronic bank runs have already happened when MM funds broke the buck back in Sept '08.