My March prediction of a bank melt down seems to have come very close last week.
Here is one article I found from a well established and conservative British newspaper covering what happened:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/23/ccfed123.xml
"There was the risk of a total meltdown at the beginning of last week. I don't think most people have any idea how bad this chain could have been, and I am still not sure the Fed can maintain the solvency of the US banking system."
I am amazed!
If just one US high street banks was to run into a problem with liquidity, how long would it take for American customers to start another "run on the bank"? I would not be surprised at all at this stage. After all, this has already happened on more than one occasion in past history:
1634-1637 - The Dutch Tulip manias
1717-1719 - The British South Sea Bubble
1717-1720 - The French Mississippi Company
1815-1830 -The Post Napoleonic Depression
1929-1939- The Great Depression
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1 comment:
Great read and the likelihood of anything changing is virtually nil. Oh and Huston is spelled Houston. :)
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