Quote:
Originally Posted by notime
Cash at home is not such a good idea for various reasons:
-people can steal your money
-it's not insured / guaranteed there
-if all people would do that; all banks worldwide would fall at the same day since banks loan out 10$ for every 1$ they have in your savings (in most countries that is)
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I am not suggesting people empty their bank accounts, but Americans will need to keep some cash at home because there currently is a run on the dollar. This is illustrated by the M1 numbers released by the Federal Reserve. If this continues then getting cash in your hands will become increasingly difficult. Sure you will have digits in a bank account, but there is a relatively finite amount of actual physical bills in circulation compared digital number of dollars in the world.
As far as people stealing your money goes I think the risk is relatively small...
And 10:1 leverage ratios seem quaint today since most banks, especially European banks, are leveraged up to around 30:1 and some even 50:1.
Quote:
Originally Posted by notime
But I agree on the fact that domino blocks are still falling and we have not seen the end of this crisis. People that lose a job, spend less >>> less spending means shops going out of bizz and the whole circus starts again there when they get unemployed.
This is by far the most complicated problem the world ever experienced and I don't think there is ONE (quick) way to solve it. Only if all people in the world and all governments would work together in this it just might have a chance after all "money leaks and fraude at financial institutions" have been eliminated so stuff can be rebuild by the truly honest.
Now everybody is trying to avoid ending up with worthless subprimes and ponzi's. Maybe if the world would just share the entire losses, we could reboot this shit and get rid of the blue screen.
Maybe the maya's were right (I actually read the books...it speaks about all lies and greed have to die to be replaced by honest true civilisations...not so much about real natural disasters...so if 2012 is within 4 years...coincidence??).
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The solution is simple, but it is suicide politically in a (modern) democracy.