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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 422.21+1.9%4:00 PM EST
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To: Snowshoe who wrote (22702)9/18/2007 2:00:38 AM
From: Elroy Jetson  Read Replies (1) of 219258
 
The thing to remember about bank run is this. One there is a panic to withdraw money from a particular bank, virtually people are merely moving their money to a different bank. So there is no money being created. Once you guarantee all the deposits fully, the money doesn't go anyplace, it isn't even transferred from one bank to another.

Money creation occurs when new money is lent to allow investors to leave their investments for other investments or banks. In this event you have twice the money.

Gordon Brown's 100% bailout of Northern Rock? Do they want him to bail out other troubled UK lenders like Alliance & Leicester, or Bradford & Bingley? Have they contemplated how far the British pound will drop if he throws everything into the gaping maw of the ravenous beast?
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