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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 421.32-0.5%Jan 16 4:00 PM EST

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To: Robin Plunder who wrote (99694)4/3/2013 1:38:59 AM
From: Maurice Winn5 Recommendations  Read Replies (2) of 219431
 
With depositors on notice that their money is no longer guaranteed by a third party, they will stampede to a safe bank. Last one out of the bung banks lose their money.

Shareholders of banks had better get their reserves robust and not look like a flimsy outfit or they will find they lose their shirts. Safe banking will become important for shareholders.

Shareholders and depositors will both be looking closely at the financial standing of their bank and bailing out if they think it's not going to be competitive when push comes to shove and safety is more important than paying 0.22% interest on deposits instead of 0.17%.

It will be fun if there are runs on various banks. Watching their share price will be an early warning.

Lehman shareholders found out what happens when financial stability is lacking and there's no free money from tax-payers or citizens.

Mqurice
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