With all the ups and downs of the current Credit Market it was kind of amusing to see this notice on another blog and an associate having massive trouble as of this writing with B of A withholding promissory funding on a project in CA. Reliable word that Bank of America branch managers just received a letter or memo from the US Fed instructing them to perhaps be ready for a one-week universal shut-down of the banking system, including access to checking accounts, savings accounts and credit cards. Reliable word has it that BofA bank branches received a shipment of signs last week, reading "We're sorry, but due to circumstances beyond our control, we cannot be open at this time." This raises the likelihood of a bank holiday coming soon. It would be wise to have some cash around because checks, credit cards, CDs don't work when the banks are closed. If you have CDs it might be worthwhile to cash them even though there is a penalty. " The only Holiday I know of is Columbus Day on the 13th of Oct. Could that be what they're talking about?
It could be. I can't imagine that they'd close banks for a week. It's not that dire a situation, although the media would have you believe it is. I don't think they closed more than a day on September 11. A lot of these things are rumors that just get out of control. I personally wouldn't cash in anything that involved a penalty.
Remember stores can't function with out banks they would have to close most people use credit cards,checks,debit cards,and payroll.Imagine people storming the stores to get food.Hey i can't go a week without my carne asada burrith hell know
In 1988 in Texas the S&L banking system went into "lockup" and the FSLIC had to quickly implement its' "Southwest Plan" to make the S&Ls functional again. What Texans remember is that on a particular weekend their debit cards didn't work and they got "temporarily unavailable" messages from the ATMs. If Congress dithers excessively over the bailout, this is how the horse's head will be delivered to their beds. That, and congresspeople might start having mishaps. $700 billion is motivation for an arbitrarily high number of violent actions.
As I recall the Southwest Plan under the auspices of the FSLIC until it was abolished in 1989 to become the FDIC saved the first debacle. But this one may be a wee bit bigger. 700Bill. is probably just a down payment of what's down the road. What the Heck Let's Start up The Printing Presses and make some more $$$$$$
That is exactly, precisely the correct solution. People criticize the notion that money isn't tied to something of "intrinsic" value like gold. But can you eat gold? Can you make a house from it? Can you make clothes out of it? Can you defend yourself with it? It's pretty, it's scarce, and it has some industrial uses. Period. The value of money is pegged to the faith we all have in each other. That faith has been shaken and a lot of notional dollars have evaporated. The solution is to refill up to the line ... the secondary problem is finding the line.
