[Cid_Yama]

RdSnt,

You bring up a good point. I think the whole point of having someone 'acquire' Bear Stearns, was to prevent the liquidation of those Derivitives. Had they hit the market, that would have priced them, and everyone would have had to mark-to-market. I think the whole point is to keep these things from being priced. That way everyone can continue to claim they are worth more than they are.

[highlander]

$this->bbcode_second_pass_quote('Cid_Yama', 'R')dSnt,

You bring up a good point. I think the whole point of having someone 'acquire' Bear Stearns, was to prevent the liquidation of those Derivitives. Had they hit the market, that would have priced them, and everyone would have had to mark-to-market. I think the whole point is to keep these things from being priced. That way everyone can continue to claim they are worth more than they are.

[Cid_Yama]

Exactly. Now you know why everyone on CNBC is complaining about the rule forcing them to mark-to-market. They managed to dodge a bullet, but just barely. Now Lehman is crashing and they're back in the same boat. As soon as someone declares Bankruptcy, the whole range of alphabet derivitives gets priced and everyone has to take fatal writedowns.

Thing is, this holds true for any major investor, including Hedge Funds. NOBODY can be allowed to declare bankruptcy if they hold a significant position in these derivitives.

That's what's got them all so worried and taking frantic actions that are destroying the dollar. To coin a phrase: "They are too TOXIC to fail."

[mattduke]

He says someone at BofA told him so.

http://www.321gold.com/editorials/willi ... 00208.html

[mmasters]

total bs

[basil_hayden]

This could be seen coming from miles away, but I think we'll all be home for a week, not jus tthe bankers.

[mattduke]

For total bs, I think you would have to listen to Ben "subprime is contained" Bernanked and Hank "i need authority to bailout F&F but i'll never use it" Paulson.

[gnm]

$this->bbcode_second_pass_quote('mmasters', 't')otal bs

[galacticsurfer]

I think this "inside story" stuff is important. I remember reading TOD threads where some guy says his brother was on a rig in the Gulf and had said whatwas the real story. Where do you get that sort of inside story on what is happening in the finances of bank and cities before they go down? Maybe on yahoo finance chat rooms or something.

[AlexdeLarge]

It would be prudent that all possible senarios be gamed. You plan for the worst, and hope for the best.

[Delphis]

Found this on Hal Turner...

http://halturnershow.blogspot.com/2008/ ... rgent.html

I bet if we all call our banks someone will spill the beans...

I am on it.

[Eppo]

Third party hear say.


I've got plenty of money to last a week, but I don't think it will happen.

[z28colt]

Three things, if that happened:

1)Would that not cause an immediate run on the banks as soon as they opened back up?

2)Would it matter if you got cash out before hand? I'm not sure how many stores would be open even for cash transaction if that happened.

3)Would you still get a credit card bill? How would you pay any of your bills? No cash in the mail, right?

[Eppo]

$this->bbcode_second_pass_quote('Delphis', 'F')ound this on Hal Turner...

http://halturnershow.blogspot.com/2008/ ... rgent.html

I bet if we all call our banks someone will spill the beans...

I am on it.

[mmasters]

$this->bbcode_second_pass_quote('gnm', '')$this->bbcode_second_pass_quote('mmasters', 't')otal bs

[eXpat]

F**ing hell!!! not even in Argentina in 2001 was one week of bank holiday!

Sorry , correction, i asked some people here and actually in argentina in 2001 ot was a period of 8 days of bank holidays, anyway, this is a measure of how bad things are.

[dunewalker]

Pure conjecture here: The threat of a "bank holiday" has been quietly issued by Paulsen, et al to coerce passage of the bailout bill in the house. If the bill fails to pass, I wouldn't put it past them to pull such a stunt, just as they probably staged the largest Dow drop in history (points) in retaliation for the first house NO vote. At that point, America will definitely be putty in their hands.

[IslandCrow]

Could the average person last a week with no chance to buy food? The question assums that most people use plastic and very few (out side of people here) would have an emergency cash supply.

I guess that if it happened it would cause more problems (eg roits and break-in to stores) than it would solve.

[BigTex]

What would the purpose of a bank holiday be?

All it would do would be to increase the level of fear.

Most people don't even have any money in the bank, other than maybe a paycheck or two.

[mattduke]

$this->bbcode_second_pass_quote('BigTex', 'W')hat would the purpose of a bank holiday be?

All it would do would be to increase the level of fear.

Most people don't even have any money in the bank, other than maybe a paycheck or two.