From CNBC.com:
Global regulators need more policy tools to counter the risk of devastating bank runs and should have powers over a wide array of market participants, U.S. Federal Reserve Governor Dan Tarullo said on Friday.
“There is a need to supplement prudential bank regulation with a third set of policy options in the form of regulatory tools that can be applied on a market-wide basis,” Tarullo said at a conference on shadow banking.
I can see the statement formulating in your brain even as I write.
And that is this: why would such a regulation be needed unless there were a serious chance of bank runs globally?
Further: why might there be global bank runs?
Answer: because it is recognized that the American economy will crash sooner than most believe, and the waves created by that will affect the economies of every country on the planet.
Plans are being made, ladies and gentlemen, by the banking industry, to keep you from your money when that crash occurs.
Not if, when.
BZ
My modest financial needs are taken care of by a credit union. Assets are in durable goods, food, etc. Nothing in “financial” assets along with no debt.
“Not if, when.” AGREE
“Praeparari,” ladies and gentlemen, I say.
BZ