"mother of all bank runs"

www.rgemonitor.com...

nuriel rubini has been pretty much the only guy (that the media is allowed to interview who tells it closes to how it is) at first they called him "mr negative" or a doom and gloomer, now they just .....lay in the corner and suck on there thumbs and ask him what is going to happen next.


referring to the freeze on credit markets;

This cannot continue for more than a few days. This is the economic equivalent to cardiac arrest. Then we debated what is necessary to restart the system.

regarding the bailout bill;

The Treasury Tarp plan is an irrelevance if we are at a major funding crisis.

yup it's just to pay off PISSED foreign creditors (who we need to lend us money-so they have the leverage here) for the massive FRAUD we perpotraded around the world selling these security's as AAA rated.

summary;

This is indeed a cardiac arrest for the shadow and non-shadow banking system and for the system of financing of the corporate sector. The shutdown of financing for the corporate system is particularly scary: solvent but illiquid corporations that cannot roll over their maturing debt may now face massive defaults due to this illiquidity. And if the financing of the corporate sectors shuts down and remains shut down the risk of an economic collapse similar to the Great Depression becomes highly likely.

So what needs to be done? Even several hundreds of billion dollars in emergency liquidity support to the financial system by the Fed and other central banks in the last week alone have not been enough to stop the seizure of liquidity in interbank markets and the shut down of financing for the corporate sector as counterparty risk is now extreme (no one trusts any more in this crisis of confidence even the most reputable and trustworthy financial and corporate counterparties).

This is NOT a joke folks, this is the real DEAL. When your employer can't give you a check, or your bank is closed, and your atm card and the machine doesn't work we will have a full fledged RIOT in the streets.


Gov. Arnold schwazzneggar (sp?) is asking treasury for a emergency 7billion dollar loan so Cali can pay SALARY's!

biz.yahoo.com...

California may need a $7 billion emergency loan from the Federal government for day-to-day operations and to pay teachers' salaries, nursing homes, law enforcement and every other State-funded service this month, Gov. Arnold Schwarzenegger warned in a letter sent Thursday to the U.S. Treasury secretary.

the scary thing is the economist i linked, (and many others do not think the current bailout bill past this afternoon) will do diddly squat for the credit markets (it was really for foreign creditors who bought FRAUDULENT mortgage backed security's from wall street (who , china and saudi specifically, co-incidentaly may have threatened to stop lending money to the U.s govt until they got re-embursed for the FRAUDULENT security's rated as AAA) and oh ya some of paulson's banking buddy's will get relief from the bill.



[edit on 3-10-2008 by cpdaman]

This is what people have been talking about. The US credit well has run dry!

This will be the talk of the town next week. Even after the bailout, credit markets hardly moved!!

Here's yer movement!

reply to post by 2stepsfromtop


That really is not surprising..

People bought stocks all morning.. it peaks right when the House passes the bill (effin joy) and all that cheaply purchased stock is dumped on people trying to get in on what they probably thought was going to be a massive incline..

Sales of people fleeing the financial sector brought the market back down..

No one really knows what banks will get this money.. or what exactly will be bough from them .. how soon they will get the money, or how much is being given to international central banks.....

It would be highly..... highly moronic to assume this is a fix to our problems.

And for those not historically inclined, it should be noted that right before the Great Crash of 1929 there was a move to push massive amounts of credit, liquidity, and other economic prop-ups into the markets just a few weeks before it collapsed.

reply to post by Rockpuck


EXACTLY my thoughts. I believe this will be the Oct 7th event we have been told is in the wings.

I listen to Jim Cramer on Mad Money. I took my money out of savings 2 weeks ago. The FDIC would have covered me about 3 times over but I no longer trust the banks, the government or anyone who is telling me this is all going to work out. Bank runs will make this far worse, but I can't lose what I have woked for my entire life. I don't have 30 yrs to back up and regroup.

reply to post by seejanerun


only thing i can say here is "dont listen to jim cramer" i can send you links to like a million calls of his that failed, did you see when he told everyone to buy bear stearns a few weeks before it collapsed? just do a youtube search. do what you will, but not based on cramer, my god my man!

This is what just torques me out of shape! This BS Bailout was shoved down everyone's throat with the promise that this will save Wall St., which will then save Main St. The vibe I'm getting is more like Nightmare On Elm St. This very well may not work. Then what?

The MSM spin today was that Monday was a wake up call to Main St - that their accounts and 401Ks would be in jeopardy if the bill didn't pass - so we all just woke up this week and changed our minds. I don't know one person that supports the Failout.

No one has clearly answered the question as to what would be the long-term results of no government intervention to save the market. The spin is all doom and gloom and no specifics besides short-term prospects.

I tell you what, if I had to choose between hell for myself or hell for my kids, I would definitely choose to carry that burden.

This entire situation is jacked-up. Seriously. Our country has been hi-jacked.



[edit on 3/10/2008 by kosmicjack]

reply to post by cpdaman

I drove by a branch of Washington Mutual just before noon, and I got really curious what's going on in there. So I peaked inside the lobby just to see a customer coming out. (Great body, btw.) So I became politely inquisitive. That girl must have been completely immunized against any blogger paranoia making rounds on the Internet. I had to change my attitude not to look like an A-hole. She didn't even know that WM got into deep trouble.

Then I stopped by BofA. The parking lot was kinda quiet. Silent run on the bank? So I got out to check the lobby. Business as usual. Actually it was depressing -- no action. I couldn't wait to get home and log on ATS.

personally i think the agenda behind the bailout is to bring about the world bank, your government on behalf of the real people behind the power uses your money to buy up $700 billion worth of debt from around the world, therefore these companies, banks etc, are beholden to the american government, and in time when they cant pay back they are taken over. its already scary how much, how few own and control, whats it gonna be like in a few years.