Quote:
Originally Posted by chris_gee
Yes it does sound familiar because it is the second time you have posted it in two days. It was drivel then and still is.
The writer's point was a recession was substantially avoided in 1987. The reason being that money was pumped in. How many times has that happened?
Isn't M3 being expanded at a 17% pa rate now?
Prop up the market, the brokers, the banks, and now possibly home owners. Of course you can - it is your money.
But the consequences are what?
Guess if American Spectator doesn't list them they don't exist.
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That's one reason people rush to gold now during a banking crisis. It didn't used to be that way - yes, gold has always been the currency of last resort and is the currency everyone wants during periods of high inflation, but it has never been the currency people want during a deflationary banking crisis. When banks start to go under people have traditionally sold gold to buy cash, just like they sell everything to buy cash. That has changed now - now when there is a banking crisis people buy gold. Why ? Simple math. Even if just one or two huge banks went under, start multiplying 100k$us FDIC insurance times let's say 1 million account holders and what kind of a number do you get ? FDIC insurance "saves" account holders by creating an obligation for the federal government to kick the printing presses into high gear.