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Warning!!! ELITE ARE PULLING ALL THEIR MONEY OUT OF THE STOCK MARKET, JUST LIKE IN 1929!!!
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[quote:Anonymous Coward 30194358:MV8zNzU5NDAxXzY3MzMzMzE3X0IyMTMzOTky] [quote:Anonymous Coward 73130354:MV8zNzU5NDAxXzY3MzMzMTE2X0M2OTBERDZB] it is not profit taking that spins into depression..WHEN THEY REDUCE THE MONEY SUPPLY ALL HELL BREAKS LOOSE..especially for the little guy. [/quote] The money supply is reduced when the demand for deposits exceeds the available supply of cash. So like when banks have made a majority of 30 year loans and people want to take out their deposits, that's a bank run. Banks are supposed to hold 10% reserves, that is 10% cash for their outstanding loan book, but derivatives have allowed them to lower that reserve ratio because they sell off their loans via derivatives to other investment pools like pensions. Some people call it fractional reserve banking, but in reality it's a time dependent relationship. The money that is counted on from loans will be accrued in the future, but the depositors time preference for that money may be in the immediate. Maybe they don't trust the banks that they made good loans, that the loans will default and thus the depositors will lose their money. That's a reality since rulings have been made that when you deposit money in a bank it's really like buying equity in the bank. If the banks get caught short between available cash versus their loan books, then they can and will just issue equity in the bank instead of redeeming cash. If they don't have equity available (shares) I guess they have to split their stock which lowers the price per share or they go bankrupt. The only thing holding it together is people's faith or trust that they will be able to get their money out upon demand. And every day the available amount of capital (cash reserves) gets smaller and smaller as banks increase their leverage. So I guess what I'm saying is that they don't print money from nothing they print it from from the future, but no one really knows what the future will hold. Personally I'd rather hold some silver coins than stocks or bonds because the value in that is making a lot of assumptions on growth that is most likely bunk. [/quote]
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Warning!!! ELITE ARE PULLING ALL THEIR MONEY OUT OF THE STOCK MARKET, JUST LIKE IN 1929!!!
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