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GLD 385.99+1.6%Nov 12 4:00 PM EST

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To: Bert who wrote (48425)4/11/2009 2:36:27 AM
From: elmatador   of 217738
 
C.C banking liquidity hitting it'll result on a bank run and nationalization next day.

The article talks liquidity as in "liquidity in banking". Because most banks are plainly broken, since they did not hold liquid assets as in: Liquidity is the easiness of transform an asset into cash.

Because banks did not have liquid assets to transform into cash, i.e., they are not liquid, governments afraid of a bank run, keep giving them cash (TARP, "stimulus", etc) , so people don't demand their money causing a total bank collapse.

It is better -governments reason- to have a bankrupt bank saved by nationalization than to have a bank run.

Note that "stimulus" packages are a way o sell -to the ignorant masses- giving cash to avoid a bank run dressed up a "projects" to create jobs...
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