USD Situation

2 posts / 0 new
Last post
investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182
USD Situation

There have been disturbing stories/rumors going around that the USD is poised for a crash episode in the Fall. The stories are basically anecdotal. One suggests that US embassies have been told to gather a year’s local currency in their host country. That is one example.

That story has also been denied by others in the US embassy organization, again, not officially, but anecdotally to me. We view these particular stories as more or less just rumors.

http://www.financialsense.com/fsu/editorials/laird/2009/0806.html

The $2 trillion US bank run

In fact, one astonishing story by a US congressman later on the events was that one fateful day in Fall 08, there was a run on US money market funds and banks to the incredible tune of $2 trillion in a mere two hours! And until the US Treasury stated they would guarantee US MMFs, the Fed and Treasury stated they were going to see a $5 trillion run on US financial institutions by the end of that day. $5 trillion in one day. The Fed stated they were not going to be able to stop it until the MMF guarantees stopped it. We were that close to financial Armageddon, and that congressman got in a bit of hot water for letting that out 6 months later in an interview.

investorzzo's picture
investorzzo
Status: Diamond Member (Offline)
Joined: Nov 7 2008
Posts: 1182

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments