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 Replies: 11 / Views: 2,084 |
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Rest in Peace
United States
9104 Posts |
For those that missed it, the run on banks started in Greece, with over 1 billion euro withdrawn. While everyone was paying attention to Greece, the bank run spread to the nationalized bank in Spain, who also reportedly had 1 billion euro withdrawn. This has pushed the exchange rate of the Euro down to $1.27. [from 1.295 Friday close/1.30 Apr 30] The bank was nationalized on the 9th due to financial crisis. Some reports are that withdrawals in Spain began before nationalization. Sources : Channel 4 news from UK, BBC News, http://www.reuters.com/article/2012...G0JA20120517 According to http://online.wsj.com/article/SB100...oglenews_wsjSpain's govt. is denying that it happened. |
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Pillar of the Community
United States
1150 Posts |
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Pillar of the Community
United States
3670 Posts |
Very interesting, so now Spain is in over there head an they are trying to cover it up, an say all is well. When they say all is well, can't we always assume 180 degrees the opposite so as to get an accurate reading of what is in fact goin on.... Wonder how much of this an the whole mess in Europe is connected to the metal spot prices, an if these new event have anything to do with the sudden swing back, for now at least, could be real short libbed.... I stopped by a coin shop way on the other side of town, an I rarely go there prices way high, but will swing by from time to time as it is close to my grandmothers.... Anyhow, he said he thinks silver is way smart buy long run, an heard from his sources that gold is heading to 1800 to 2000 still yet this year, probably by late summer or early fall. He has been in the game for years, an is a smart guy as he is in a low overhead spot, an most of his stash which he will NOT sell often comes from street buys.... Not to drift to far off subject, but he did have a most unique set of sterling mini bars of all the American flags we have ever had, like 38 bars, totaling just over 6 oz. of silver, in nice wooden box with glass case. He said they were real rare, an he had only seen two sets in the last 8 years.... Priced WAY to high at 321 plus tax, lol. Too high for me, anybody ever heard of or seen this rare set. Very cool, I must say an I would have loved to added it at more like around 250 perhaps, an still not much room left even with that offer. Never know what these old rare sets will bring on ebay however, maybe one day I will make him an offer on it, can't hurt to try.... Edited by Silverhawk74
05/17/2012 1:04 pm
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Pillar of the Community
United States
4008 Posts |
Quote:
Some reports are that withdrawals in Spain began before nationalization. That would be entirely in keeping with government control of the banks. Once that is established, the very next step is to implement currency controls so that any bank runs are nipped in the bud. Speaking of bank runs... isn't this about the only time that the sheeple ever become aware of fractional reserve banking and its implications? It isn't until everyone wants their money out of the banks that the banks are forced to admit that they do not have it all available to hand out. No surprise for PM collectors but it sure seems to be to a lot of others out there. |
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Rest in Peace
 United States
9104 Posts |
During the S+L crisis, there was a minor run on a local one.
The modern response is to pull up a Brink's truck in the parking lot, with more $ than people could ask for.
Strictly a show of force. If a systemic bank run happened, they don't have enough armored cars or $ in the fed.
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Pillar of the Community
United States
4008 Posts |
Agreed, Fredd. The Brinks truck would work on a small scale but certainly not on a large one... hence the necessity for a "bank holiday". Not that this is likely to ever be a problem here. At the 1st sign of a widespread bank run, Helicopter Ben would show up and... bombs away!
Maybe all this boils down to the simple fact that to most folks, money is real. They have to work hard to get it and it is hard to hang onto what with everything going up in price and the Fed continuing to tell us that they aren't. Then, we have the Fed and the gov who know that money is not real. It is a figment of the imagination in the Fed and Treasury computers. Need more money? Just add some zeros to the right line in the computer and... SHAZAM! more money is created. So easy and no work required. No wonder money is not real to these guys... because, it isn't! It's just a computer game but only they get to play.
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Pillar of the Community
614 Posts |
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Rest in Peace
United States
9104 Posts |
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Pillar of the Community
United States
1454 Posts |
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Pillar of the Community
United States
3670 Posts |
So the Euro is still sharply heading down. An PM's alteast today have had what appears to be another false recovery day up to this point, but we will see....
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Bedrock of the Community
Australia
21788 Posts |
There is some element of mob mentality amongst financial gurus of a fear of a domino effect on European banks, if the poorer Eurozone countries default. That mentality is reinforced when they can't agree on how to deal with the crisis.
Everyone is rushing to U.S. Treasury Bonds as the Euro problems develop. That is why the USD is gaining strength.
That is hard for me to figure out when the rate of return on U.S. Bonds is so low, and U.S. debt is so high.
To me at least, it helps to explain why so many of us here in the CCF are so interested in PM's!
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Pillar of the Community
United States
4008 Posts |
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Yurro now at 1.26USD. Yep, moving down but slowly. Heck, Fredd... you, Barry, and I are old enough to remember when a euro was worth $0.87... and when the yen was pushing 110 to the dollar... and when a dollar was real money that could actually buy some useful (and tasty) items. Everything changes... sometimes even for the better. Mostly not, though. :-/ Quote:
Everyone is rushing to U.S. Treasury Bonds as the Euro problems develop. That is why the USD is gaining strength. That is hard for me to figure out when the rate of return on U.S. Bonds is so low, and U.S. debt is so high. Yes they are, Sel, and yes it is difficult to understand. My guess is that this is 1) a gut reaction on their part; and 2) financial adviser inertia... hey, the US dollar has always been a safe haven! Normalcy bias rides again. |
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Replies: 11 / Views: 2,084 |
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Posted 05/17/2012 1:03 pm
