Recently I had a bizzare experience. I recieved a phone call from the Dutch banking colossus, ABN Amro, offering me “investment opportunities”. This was not a phone scam but a real bank employee phoning me. I talked about the subject with my brother one evening over dinner and he also recieved a phone call from another banking giant, CitiGroup. Again this was not a scam but the real deal.
Until a few years ago these giants didn’t bother with you unless you earned well over a million Euros a year and I have never made that kind of money, honestly. I did a little research thank to our common friend, the Internet, and I discovered how both banks are really in deep troubles following the so-called subprime crisis. They are desperate for fresh cash and even a small fish like myself must seem a boon for them. Which leads to my question.
Given the present political and economical conjunction is pretty obvious that some very large bank will face bankrupcy in the next twelve months or so. Will the old dictum “too large to fail” still apply? Will we see an earthquake shaking the very foundations of the banking world? The sums involved are so colossal that I personally do not know if even a multi-government action (using lots of extorted money, of course) will suffice. In some European country is a pretty common practice to have an ailing bank bought by another healthier bank: this is not usually made out of sheer generosity or because it’s a potentially good deal but through government intervention. We Europeans have come to believe that banks cannot fail and if the situation is dire, government will step in and nationalize. But who can afford buying something as huge as CitiGroup or ABN Amro? Will cajoling the Gulf oil monarchies and blackmailing the Chinese work this time?
I’m always told that “opinions are like {cavity} everyone has one and they all stink.”
So I will stink, and say ‘sell before the bell’, liquidate, and panic before they do. When the crash comes, I bet it will be a real charlatans parade. The plutocrats will have already weathered themselves. I hope their own theory of destruction equals productivity, finally realy works in their own demise. The free market may have to find another specie? If folks don’t let the firestarters in control will realy pervert Grishem, and give a worse fiat than the one we have backed by another complete illusion of false security. The banks always fail with their one shell, confidence. I wish I didn’t look like a cook when I ask if I can be paid in real specie. I enjoy defacement of, the non-demand of payment of specie banknotes, how bout’ y’all? Is it plausable that the people could demand a system of just compensation for all, as opposed to rehabilitation (indoctrination)?
There is and always has been since the creation of the Federal ANTI-Reserver in 1913 a bank bailout. To say we will not have a bank bail out is false as the Federal Anti-Reserve has been using its inflationary power to help banks for the past 95 years.
There have been several points where banks were saved and each time has ended in economic ruin and the destruction of great wealth. The first two 1. Depression-Deposit Insurance was created and this was the worst as it removed risk from banks. 2. The 1960s and 1970s, this took a massive receission/depression in what is now the rust belt to end. The steel, auto, auto parts, machinery, etc have yet to recover.
The final one started September 11, 2001, advertised as a bailout of the entire economy but was secretly a mechanism to enrich banks expand government and stick wage earners with a hidden inflation tax. The fake/fiat money created was used by Government to get bigger and Banks to write ridiculous loans. Now these “investents” are being liquidated as they are not sound at great havoc to the economy.