I found this on another message board:
"i spoke with a friend on the phone tonight, who said he had dinner with someone high up at one of the major banks, who told him that things in the banking sector are much, much worse than we're being told, and that a complete collapse of the banks could happen as early as the beginning of this coming week. he said that the banks were in talks with the government to be nationalized, but the transition could take weeks, during which time services could be interrupted because the flow of money and credit will be essentially stopped until things get ironed out.
his banking friend said it could be perhaps even as long as 2-3 months for things to return to somewhat normal and to go out immediately and stock up on canned goods in order to ride out the "transition". he said that that the danger isn't in a run on the banks like the depression, because the government has guaranteed those funds, but in businesses being unable to guarantee that they will be paid for goods, might stop shipping to stores. given what we;ve heard about credit markets not unfreezing even though they were provided with govt loans, perhaps this isn't so far-fetched."
Anyone care to comment?
"i spoke with a friend on the phone tonight, who said he had dinner with someone high up at one of the major banks, who told him that things in the banking sector are much, much worse than we're being told, and that a complete collapse of the banks could happen as early as the beginning of this coming week. he said that the banks were in talks with the government to be nationalized, but the transition could take weeks, during which time services could be interrupted because the flow of money and credit will be essentially stopped until things get ironed out.
his banking friend said it could be perhaps even as long as 2-3 months for things to return to somewhat normal and to go out immediately and stock up on canned goods in order to ride out the "transition". he said that that the danger isn't in a run on the banks like the depression, because the government has guaranteed those funds, but in businesses being unable to guarantee that they will be paid for goods, might stop shipping to stores. given what we;ve heard about credit markets not unfreezing even though they were provided with govt loans, perhaps this isn't so far-fetched."
Anyone care to comment?