They posted a link to a site run by economics wonks, The Automatic Earth, who used to post on The OilDrum. And they are pretty apocalyptic in their assessment of what is happening, particularly within the UK economy.
I would not at all be surprised if by Christmas Britain will be declared an economic disaster area, and emergency legislation be adopted. All the major British banks are trying to raise capital through rights issues, and all seem to fail miserably, indicating that confidence in the power of the economy to rebound is fast approaching zero. Kelvin, that is. Without constant capital infusion, even prosperous growth economies are certain to collapse; those already in distress fall that much faster. The British government faces new mayhem on a daily basis, and there's no stopping it anymore, since it comes from all directions at once. It will therefore have to be absorbed. And that will mean a return to mass unemployment and subsequent new found poverty.
All the major British banks are trying to raise capital through rights issues, and all seem to fail miserably, indicating that confidence in the power of the economy to rebound is fast approaching zero. Kelvin, that is.
Without constant capital infusion, even prosperous growth economies are certain to collapse; those already in distress fall that much faster.
The British government faces new mayhem on a daily basis, and there's no stopping it anymore, since it comes from all directions at once. It will therefore have to be absorbed. And that will mean a return to mass unemployment and subsequent new found poverty.
I'm unable to comment on the likelihood of their scenarios, so is there anyone there who can tell me if I should withdraw all my money and hide under the bed keep to the Fen Causeway
The Republic of Britain, the sacking of Parliament, England under sharia law, citizen's takeover of the media, the allotmenting of Britain, feral England, I am Legend London, Civil War - take your pick. None of them are impossible when a society collapses. You can't be me, I'm taken
OK, very scared now, so what do I do? ... OK, terrified, what do I do?
...
OK, terrified, what do I do?
Once this truly gets rolling there will be a reduction in the amounts covered [by the FDIC] and probably withdrawal limits even with solvent banks.
A lot of folks got trimmed in the Indymac crash, with $BIGBUCKS reset to the $100,000 maximum and no recourse.
Run, don't walk, to your bank and get the funds you have clear of this mess before it gets any worse. The safe deposit box ... isn't. There were rules during the Great Depression such that a treasury agent got to paw through any that were opened before the owner got to touch their stuff; gold, silver, and cash could easily be confiscated in an emergency.
(Not saying it's not going to happen, the fact that the police had to caution people queuing in front of IndyMac branches last week is not a good sign - if anything, when your bank gets taken over by the Fed you should feel reassured, not do a run on it) A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
