Another ominous warning of imminent economic turmoil
Former Harvard Professor of Economics Terry Burnham fears starting a “run” on Bank of America after he made public his decision to withdraw $1 million dollars from his checking account as a protest against Janet Yellen beginning her term as Federal Reserve head this month.
In an article for PBS entitled Is your money safe at the bank? An economist says ‘no’ and withdraws his, Burnham, an ardent critic of the Fed, writes, “Why do I risk starting a run on Bank of America by withdrawing my money and presuming that many fellow depositors will read this and rush to withdraw too? Because they pay me zero interest. Thus, even an infinitesimal chance Bank of America will not repay me in full, whenever I ask, switches the cost-benefit conclusion from stay to flee.”
More
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
With the latest spat of banker suicides I wonder if 1929 could be around the corner?
ReplyDeleteI don't have a lot of money but what I do have is not tied up in any investment. I could get it out in a day.
ReplyDeleteAnd even though it's sitting in a bank it's getting practically nothing in interest credit.
Pathetic. At least during the Bush economy it was growing.
Expect the worst and hope for the best 12:01.At least you know what to expect for the next 10 years,which makes you prepared.
ReplyDeleteTruthfully, with a interest rate of .015% on savings, where is the incentive to leave it in the bank?
ReplyDeleteThere is always a kernel of truth in these things, but the comments did a good job of playing devil's advocate. Except for the sick "blame the Jews" crap that someone else debunked beautifully. Money knows no religion anyway. It is its own religion to many, regardless of church faith.
ReplyDeletefirst a money/banking crisis, then martial law.
ReplyDeleteremember?