Tuesday, April 28, 2020

House Of Cards

Golden Lenormand ~Rider

Prepare for something new, move quickly. I'm surprised we haven't heard of any bank runs. The stock market crash in 1929 triggered a run on banks which depleted, then killed them.

In theory the federal central bank (FDIC) now guarantees a full or partial protection if a bank fails. It guarantees it will make short-term loans to banks, to ensure if they remain economically viable, they will always have enough liquidity to honor their deposits.

Words leap to mind; partial, and if economically viable. The average bank is more careful on who they make loans to since the 2008 debacle and bank bailout, but who thought up to 20%+ of the population would be out of work. The part most likely to have loans they will never repay? A house of cards. 

2 comments:

  1. I noticed a couple of iffy type loans were starting to surface, but that has now been nipped in the bud. The governor across the river in KY has asked people not to make runs on the banks, assuring all is soon to be well? Will it? I keep thinking how far in debt the country is and now the states is. All that debt is going to collapse the house of cards.

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    Replies
    1. The family my former brother in law was raised in, entire budget planning was hock shops. Lots of stuff in, not much stuff out. When I realized that was where the nice things I gifted my sister ended up, I switched to grocery cards :)

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