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alstry (35.42)

Government preparing for FINANCIAL MELTDOWN???

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10

July 21, 2008 – Comments (3)

Thursday:

The Federal Deposit Insurance Corp., led by Chairman Sheila Bair, on Thursday issued new rules requiring around 160 of the largest banks -- those with at least $2 billion in domestic deposits and either $20 billion in assets or 250,000 deposits accounts -- to adopt new procedures allowing banking regulators to settle existing accounts in the event of a bank failure....

The new rules for large banks will require them to standardize the information they provide to the FDIC on deposit accounts, and to put in systems to automatically post possible holds on very large deposit accounts.

http://online.wsj.com/article/SB121632439187562885.html

Sunday 

AP
Paulson braces public for months of tough times

Treasury chief braces people for months of tough times ahead, says US banking system is sound

http://biz.yahoo.com/ap/080721/paulson_economy.html

Monday

Goldman Sachs Group Inc.'s most senior financial-institutions banker, Ken Wilson, is temporarily leaving the firm to advise Treasury Secretary Henry Paulson on how to resolve the country's banking crisis, according to people familiar with the matter.

http://online.wsj.com/article/SB121660908385169563.html?mod=mktw

What the heck is going on?  Is the banking system sound or not?  Why must new rules be promulgated if everything "sound" as Paulson represents?

Why must taxpayers bail out FNM and FRE while its CEOs make millions and millions in bonuses?

Is something really screwed up here folks?  A sound banking system but deposits may be held.  The public forced to buy stock in failed companies while the executives make millions in salaries and bonuses?

Now GS's most senior banker is advising Paulson on how to resolve the banking crisis?  I thought Paulson just told us the system is "sound?"

Something smells.....I am just not sure what....yet?

 

3 Comments – Post Your Own

#1) On July 21, 2008 at 9:08 AM, alstry (35.42) wrote:

Demon,

If there is a meltdown...all bets are off on inflation/deflation.

Right now, I am not sure what is happening behind the scenes....but it seems obvious that preparations are being made for some kind of bank run.

It looks like things are heating up as the dog and pony show is advertising much heavier as of late. 

Shouldn't be much longer now.

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#2) On July 21, 2008 at 3:57 PM, jesusfreakinco (28.92) wrote:

Paulson on CNBC 're-assuring' investors that their money is safe.  Take a look at my blog - I address some of these same issues and make a case for Gold - the anti-dollar.

JFinCO

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#3) On July 21, 2008 at 8:07 PM, DemonDoug (73.55) wrote:

If there is a meltdown...all bets are off on inflation/deflation.

My bet has been, and will be inflation, no matter whether we have a meltdown or not.  It just depends on how bad it is.  I agree with your assessment... it appears the gentlemen doth protest too much.

October seems to always be the time when the panic really starts to happen.  I'm guessing then?

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