reply to post by TheSandMansExecutioner
You brought up a valid point for discussion - wages through banks. What happens if your boss has his profits and employees wages kept in the bank and
then the bank collapses? Would your employer be able to pay you?
Let's look a real scenario. MF Global went bust and there were hundreds of millions 'missing'. Many depositors and gamblers are turning to begging
them to give back the money, but as we know, MF Global lost big time on sovereign bond gambles. And MF Global is but the tip of the ice-burg of many
other banks exposed naked today.
What happens if your employer has his funds there?
Thing is, govs will only guarantee up to a limit of depositor funds. So your boss will still lose much. Extrapoliate that to the economy, there will
be riots on the streets if workers do not get their pay. As least for pensioners or upper middle classes whom had lost on MF Global, those were only
savings. They would still have means to live, but workers who depend on wages for day to day living will run amok in the streets.
Therefore, your employer must first ensure that his funds are in safe havens now and not in heavily exposed culprit banks, to ensure he and his
Secondly, for those companies that had not got out quicker, will have to seek the gov for solutions - perhaps selling/loaning a part of stocks or
assets in exchange for some loose change to get the biz running and pay workers, using the US treasury bond mechanism, as mankind still have needs to
be met, and ensuring stability on the streets.
At least this manner, through direct intervention by gov, there is oversight and control over the funds used. If gov fund banks instead and depend on
them to help the economy, it will fail as proven in the 1st bailout where the banking class only helped themselves and no one else, and worse, created
far more mayhem than 08.
Let the banks fall and new ethical ones arise.