Bitcoins and gold standard dollars -- was Re: Anyone want to make a housecall?
levipearson at gmail.com
Tue Jun 4 19:38:27 MDT 2013
On Tue, Jun 4, 2013 at 6:39 PM, Daniel Fussell <dfussell at byu.edu> wrote:
> I've been in the bank sector, and wikipedia, et al, only tells you half the
> system; there's also a social part of it. I've watched a solid bank
> collapse under what essentially was a bunch of hair-brained idiots raving in
> forums. Only the idiots were the stock-holding board members making a stink
> in a public forum about the bank leadership's supposed malfeasant decisions
> that resulted in a fractional percentage reduction of their normal stock
> dividends. Two weeks later, the bank didn't exist. At which point, neither
> did the stock. Don't underestimate the power of an idiot to destroy value
> via public forum. They have no sense of self-preservation.
This is precisely why the Fed does not make their open-market
transactions public. :) If a bit of forum-whining can destroy
confidence in a bank, evidence that it had to be 'bailed out' would
only make things worse, nevermind that receiving an overnight shot of
liquidity from the Fed is hardly a 'bail out'.
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