Keep your money in the bank, people! |
| Published: October 3, 2008, 1:20 pm |
| Tags: a nation at risk, congress, added to bail out package, bail out, banking freeze, fdic, financial industry, incentives, just in time inventory, pork, silent run, silent run defined, wachovia, wamu, wells fargo |
|
Well, considering there was a debate last night - you’d think that would be my topic of discussion today. Nope, sorry - there’s something more important that we need to discuss - this country’s financial and economic security! As we’re on the eve of yet another vote on this stupid bail-out plan by the government - and - it is expected to pass this time around - there is something else that is not being widely reported right now. No amount of money provided to the financial sector is going to make a difference if the “silent run” on the banks continue. A “silent run” is different from a regular bank run. A bank run is when all the customers line up to withdraw all of their deposits from a bank thinking that bank is going to fail. When that happens, banks can no longer fulfill their obligations. A silent run is a withdraw of all the uninsured deposits (those above the $100,000 cap). This explains the reason why the senate has [ Full article ] |
 Blog link
|
No Comments...