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2008-11-21 Home Front Economy

Who says Irony is Dead: Bloomberg says, Cash 'Excellent Store of Value' (Video)

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Posted by phil_b 2008-11-21 15:48|| || Front Page|| [3 views ] Top

#1 Sure. So's canned goods. Bottled water. Guns.
Maybe I'll send my resume to Bloomberg.com and be on the teevee...

Posted by tu3031 2008-11-21 16:41|| 2008-11-21 16:41|| Front Page Top

#2 Get in on the ground floor of FUR.

Posted by .5mt 2008-11-21 18:29|| www.cybernations.net]">[www.cybernations.net] 2008-11-21 18:29|| Front Page Top

#3 I strongly agree not only with the idea of being liquid right now, but not just relying on having your money in the bank, but in "mattress cash" as well. Income is not the issue, wealth preservation is. But it has to be where you can get to it, and nobody else can get to it.

Very quickly, a cash run on banks could deplete their currency stores, and virtual money in the bank could be frozen or nontransferable. Does anyone out there think in their wildest fantasies that if CITI folded, the FDIC could cover its collapse? If its share price drops below $5/share, a lot of pension funds and institutional investors are required to dump their shares. Aftermarket today, it closed at $4. Monday the hammer comes down.

(I just looked) Since late 2006, 304 major lending institutions have failed. The money in them either ceased to exist or was covered by the USG or other companies that took them over. With the folding of major corporations like GM, there is no way even the USG can cover those losses.

The risk of keeping a few thousand dollars at home in a safe place is very low, theft or fire. If inflation hits, you can spend it quickly. But if things hit the fan, you are covered.

Posted by Anonymoose 2008-11-21 20:23|| 2008-11-21 20:23|| Front Page Top

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