Dr Willie has advised us that Morgan Stanley appears to be on the ropes. I’ll weigh in with my observations and some ‘on the ground’ suggestions.
MS failure? That would explain the 600 CPAs hired at $500 an hour to dive into an unnamed bank on Wall Street. No one has named the bank or banks that received a hypo from the Fed in the last month. It was $800 million and this is the first time since 2008 that the Fed has done a hypo. Someone was real short on liquidity.
If you are in the umbra of MS your money will be gone ala MFG, protected by the 7th Circuit court ruling
that your money used as collateral is now the property of the creditor.
IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL.
If you are in the penumbra your money is at complete risk given the new rules in the MMA market that are designed to prevent bank runs. The southern Euro tier countries have limits that range from $400 to $1,500 max withdrawals a day coupled with draconian currency and PM border controls. If your money is in the bank you will not be able to get to in.
Spain has seen 5% of its bank deposits flee in July. The bank run is a full blown race to exits. Remember this one fact. IF YOU ARE THE FIRST OUT YOU GET THE BEST DEAL. Game over in Spain folks.
People are trading their skills through time banks in Spain. Did you see the movie ‘In Time” It’s real in Spain. Bank holidays are real and coming to a town near you. Credit Agricole reported a 63% drop in earnings due to losses in their Spanish bank subsidiaries. No comment was made about the capital and equity losses suffered by CA due to these Spanish banks in the tank. Dexia Bank is about to hand the Waffle Countries a $125 billion haircut. It’s Dexia’s third run to the well in 2 years.
Some say the US is worse off than the Euro zone Could be given the 50 states are all pretty much bankrupt. At least some of the Euro zone like Belgium, Finland and Germany are still sort of ok but going into recession.
With this in mind and know the present regime would love to stay in power, if MS goes down and takes a few other banks with them the DC crowd will declare a bank holiday. Here is how Susanne Posel describes the potential scenario.
On Friday there is banking shut down with the blame shifted to a Flame like virus. Its a false flag like the tests done at Nat West and RBS in UK and Ireland
On Monday the banks reopen with the assurances that there is nothing to be concerned about—virus problem solved
72 hours later martial is declared since the problem was not the virus. It was and will be the systemic failure of the banking system in the US and maybe Europe.
That 72 hours will be your queue to close your accounts and remove yourself from the banking system. Taking cash from your account and buying any form of supplies you need to get by will be the order of the day. Buying some silver at your LCS early Monday morning will be a good idea. Take the day off. Close the shop and fill up your gas tanks and other petro stockpiles. Move away from the city if you can, take a 1 week vacation and bivvy somewhere outside ground zero.
This is what I would do and have done nearly everything on my list some time ago. The cash conversion is in process and maybe a little phyzz purchase will top off the tanks.
Remember, the first ones out get the best deal!!