From LATOC
This is not easy reading, due both to the subject matter as well as the effect (hopefully) on the reader of the dire import of the news.
I barely understand portions of this piece, nor could I cogently explain much of it, but here's the gist
- Money markets comprise some $3.3 trillion of American's savings. About 20% of that is by individuals, the balance institutional.
- MMs are supersafe investments; high-grade, bulletproof, Fortune 500, yada-yada. For that reason, they return low interest; scant risk.
- MMs pose a threat to our fiscal stability as our fiat government is bankrupt. The shark moves as it must, but the harpoon is lodged deep.
- The threat is that MMs currently can, after their maturation date (90-day, etc), be legally withdrawn; instantly and upon demand.
- In the event of obvious signs that the U.S.'s Potemkin economy is coming asunder, MMs could pursue a run on the banks.
- Other than the drama of a FDR-style "bank holiday," the best way to estop such action is to bar the withdrawal of funds.
- The writer suggests that, if you own any MMs, you begin thinking about where else to park your bucks.
That's what this piece is about.
(let me know if I've gotten any of the major points wrong)
I don't make the news, but I feel it my duty to alert you all to upcoming events that you may have to deal with, like this one.
For a trenchant report on America's financial beggaring over the past two years, you won't find one any more candid - or informed - than this:
crash08 An investor's view of THE FUTURE OF AMERICA - Craig Harris 321gold 12-27-09
Finally, Arianna weighs in with some general advice on how to use your money to punish the bad guys:
Something to consider - I closed my Wachovia account and moved to Achieva (the old Pinellas Teachers Credit Union) in May. Not only did they treat me like a human - even after they had my business - but, after 90 days, added $100 to my savings account as a thank-you. If you plan on dropping by, let me know - I can use the $50 referral they will give me for your signing up.
Yes, it's a bit of a pain, especially the bill-pay transfers, but I felt better for having done it. The big banks have a new way to skim $$ each month. They proudly announce it with turgid "memos" to their customers on each statement. Despicable.
While I don't think this approach, or any other on this level, will change many hearts or minds along the Wall Street-Potomac noose around America's neck, it might at least be a reminder that there are one helluva a lot of us who are mighty unhappy with the state of this nation.
crash08 BANKSTERS MOVE YOUR $$ FROM Too-Big-To-Fails #4.11 huffpo 01-03-09
Take care, it's a jungle out there.
Nigel Watson freethinker 727.493.1990 freesense@Gmail.com
"It is no measure of health to be well adjusted to a profoundly sick society." – Krishnamurti
-A good pun is its own reword.
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