Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 96.06

-1.4%

4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Rarebird who wrote (61800)	12/7/2000 8:56:16 AM
From: long-gone	Read Replies (2) of 116762

Your answer was a little overly simplistic, a real "Economics-101" answer. Level of reserves are controlled by law for Federally Insured Institutions. Even for non-insured institutions, reserve levels are important as they drive credit worthiness of the lending institution. As the Internet bubble burst, real people have lost real jobs. In some cases, they were margined to buy their company's stock. In other cases, brokerage accounts were pledged for a reduction in down payment for homes - as stock values fell, ever larger amounts of money are needed be deposited so as to cover down payments. We in the U.S., just had a revision banking regulation from those driven by the Great Depression to something far more loose. These "new & improved" loose loan procedures are coming home to roost. Brokerage Firms are speaking, in less than hushed terms, about margin calls. The problems are only beginning. Isn't "constructive destruction" great!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next