Bank Runsgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
There was an article in the Sunday Detroit News 5-9-1999 Business section on how the Fed is getting ready for Y2K bank runs.
The article was on the front page of section C. The article said there WILL be runs.
Also I lived through the 67 riots here in Motown and am getting out. If you stay have an AR15 with lots of SS109 ammo or an AK. Have lots of beans rice and WATER.
Getting out this time. Been there done that.
-- Ern (firstname.lastname@example.org), May 11, 1999
Ern & All- Of course there will be runs. The printing of the extra currency is designed to placate the public and minimize them. One standard banking tactic to quash runs is to place a HUGE pile of currency just behind the teller's booths so that the depositors can see it. They realize that they can get their money...and don't feel that they have to at that moment. The real question is whether or not the runs will lead to the downfall of the system (or even a major subset).
-- Mad Monk (email@example.com), May 11, 1999.
Monk: Great idea! Banks could do like in the old cops and robbers movies -- just stacks of cut paper with a few real bills on top.
-- A (A@AisA.com), May 11, 1999.
Hadn't thought of that. Silly me. What a wonderful way to expand the currency supply even further.
-- Mad Monk (firstname.lastname@example.org), May 11, 1999.
So, A. what is the difference between what you suggest and having a stack of 'real' money there??? Its only paper ya know. ;-)
-- David (C.D@I.N), May 11, 1999.
Nope, there MAY be bank runs. Acticle is mostly a rehash of what's already been reported, though there is included an interesting breakdown on the denominations the Fed is planning on printing:
U.S. Gets Prepared for Y2k Bank Run
-- Nathan (email@example.com), May 12, 1999.
David: What I meant was, the bank would just have these stacks of paper behind the teller to give the appearance that they had a lot of cash on hand. Just a more material expression of the smoke and mirrors they do with the computer (electronic entry) money.
But, it just flashed on me, why not just plain paper? Someone once said to the effect that "government is the only entity that can take a valuable commodity, like paper, slap some ink on it, and make it worthless."
Actually, I HOPE there are bank runs. The government, but especially the asshole sheeple need a wakeup call.
-- A (A@AisA.com), May 12, 1999.
A - understood. Funny thing that.
-- David (C.D@I.N), May 12, 1999.
To stop the bank runs, why not just decriminalize counterfeiting, or allow people to use Monopoly money as legal tender? It's all the same thing. When the electronic economy crashes in 2000, and the feds default on the national debt, it should be interesting to see how long it takes before sellers begin refusing worthless federal reserve notes.
-- Prometheus (firstname.lastname@example.org), May 12, 1999.
This topic is covered extencively in the Federal Reserve Board Testimony
A must read
FRB: Y2K from April/13/1999
Testimony of Governor Edward W. Kelley, Jr.
Year 2000 progress
Before the Committee on Banking and Financial Services, U.S. House of Representatives
April 13, 1999
-- Brian (email@example.com), May 12, 1999.
"Actually, I HOPE there are bank runs. The government, but especially the asshole sheeple need a wakeup call. "
Now that's a good one.
Pure arrogance. Is that all of the sheeple, or only the asshole ones?
-- Buddy (.@...), May 12, 1999.
I've been trying to get my father in law to pull his money from his accounts.He's cuna mutual's corporate disaster recovery planner,he's leaving the bulk and pulling a few grand,but he's certianly not optimistic,cuna's purchased HUGE generators here in madison and has told employees that cuna will be heated and open to employee families.the happy face that cuna is putting on y2k isn't being reflected behind the scenes....zoob.....
-- ZOOBIE (firstname.lastname@example.org), May 13, 1999.
My spouse knows a few insiders at an insurance company in Madison. Most are stockpiling.
-- GeeGee (GeeGee@madtown.com), May 13, 1999.
Brian's link above shows explicitly that the Fed. is making conscious decisions to manage perception of the problem at the expense of contingency planning.
The Fed's decision to do that is not a bad thing in itself. But there is a part of the population that does not appreciate being "managed" and the patronizing attitude of the Fed will not engender trust that the situation has been skillfully handled and solved. Unfortunately, among the group which does not take kindly to "management efforts" are self-made business people who tend to make their own decisions and regard their assets as personal belongings as opposed to simply an integral part of the banking system.
That's a problem for the government/industrial lords. The spin and perception management will work best on those who have no assets. The perception management effort may increase the anxiety of those who have amassed their own wealth.
-- Puddintame (email@example.com), May 13, 1999.