(All that good economy talk, and all that false optimism. Yes, I’m raining on that parade. It is fraudulent and worse. Anyway, here is something to think about, just in case…)
August 27th, 2014
… Recent comments delivered by Federal Reserve Vice Chairman Stanley Fischer suggest that not only are global and domestic economies still struggling, but the U.S. government itself is preparing financial contingency plans in anticipation of another widespread economic event.
However, this time around, according to Fischer, the government won’t be bailing out financial institutions in need of cash. Instead, failing banks will turn directly to their unsecured creditors when they need money. And within this context, that means you. …
One morning you could wake up and see ten or twenty percent of your funds transferred out of your account and exchanged for long-term debt (like a bond) with the promise that the bank will pay it back to you at a later date.
The immediate result, as you might expect, will be widespread bank runs, just as we saw in Europe when Cypriot depositors got hit. But, there will be no cash to be had save a few hundred dollars here and there, as banks will limit ATM withdrawals and will likely shut their doors to customers. …