The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: LTK007 who wrote (16612)	1/23/2009 8:34:01 PM
From: Real Man	Read Replies (1) of 71454

Hard times, Max. FDIC's 35 bln. can't possibly cover Citi's or BAC's depositors, let alone their blown up contracts, so nationalization is the only option if it comes to that. The government signed up to protect depositors. If that policy is abandoned, there will be major chaos. Typically the government takes an 80% stake during nationalization (FNM/FRE/AIG model), so the stock does not go to zero, but close enough. Theoretically it should immediately dive 80%, but it normally dives more. The government can also put them in receivership, which means zero, as FDIC would do. The bank will then be liquidated. Yeah, and RBS where your dude works has been nationalized by UK central bank this Fall. <g>

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