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2009-08-02 Economy

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Posted by Fred 2009-08-02 00:00|| || Front Page|| [6 views ] Top

#1 I have seen some concern that in mid-September there is going to be a banking crisis, because the "close five banks a week" soft landings done so far this year are going to suddenly turn hard, with lots of banks closing, exceeding the ability of the FDIC to quickly clean up the mess.

The "bad case" is a national bank holiday in the last week of September, lasting from 4 - 9 days including two weekends. So once again, the advice is to have a few thousand dollars in a safe place at home, so you don't get caught short.

Economically, it is expected to be a hard fall, which could turn into a "third wave" drop of the stock market, which is typically the worst drop in a recession.

Posted by Anonymoose 2009-08-02 10:34|| 2009-08-02 10:34|| Front Page Top

#2 I'd say we are about June 1930 on the Great Depression timeline.

Posted by phil_b 2009-08-02 12:52|| 2009-08-02 12:52|| Front Page Top

#3 The good thing is that no country is on the gold standard so it's easy to offset deflation (from bank collapses).

The bad thing is that it's too tempting for governments to ruin the economy by borrowing and inflating.

Posted by Bright Pebbles 2009-08-02 13:18|| 2009-08-02 13:18|| Front Page Top

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