posted on Oct, 8 2008 @ 06:20 PM
Yesterday on Colbert, one of my favorite people in the world, Mad Money's Jim Cramer was the guest. He said something which he claimed was cut out
from his NBC Today Show interview on Tuesday morning and which almost got passed right over even on Colbert (and in a way was neutralized by a joking
comment by Colbert himself). Cramer predicted that it will become impossible to get your cash from an ATM for a period of time in the near future.
Unfortunately, he wasn't asked or really given a chance to expound on this as the smoke & mirrors of the FDIC insurance issue came up. Not the first
time I've seen that ploy used in the last couple of weeks, either... it seems obvious to me that the way they are redirecting people's attention
away from a possible bank holiday/full ill-liquidity scenario is by saying "Well, you can't lose any money below $250,000 so that idea is
ridiculous! Your money is safe." Whoever had just brought up the idea that you can't get your money is basically forced to acknowledge the FDIC
insurance and say "Yes, the money is safe" and then the topic is changed or the interview is ended quickly before they have a chance to say that
we're not talking long-term ill-liquidity here, but rather on the short term.
Though I poo-pooed the idea last week, I'm starting to think there's really alot to the pending bank closure theory from last week. I consider
myself lucky because I live in a fairly tight knit community and shop at a grocery store where, if you get through the checkout line and discover you
forgot your wallet, the cashier will address you by name and let you take your purchases home, knowing that you'll be returning quickly to settle up
your debt with the store. That assurance makes me somewhat relieved because I know that those stores will honor my bank check if we reach a point
where cash is unavailable to the public for any short period of time.
I worry alot about people who don't have any form of safety net, however. What will happen to those people if and when their bank either fully fails
or is forced to close for a period of time? Scary, scary times we're living in.