How A US Banking 'Holiday' Would Proceed?

 Step One:  Between now and the first of April, roughly half-a-million Americans who mostly have in excess of $250,000 in their bank....mostly connected to their retirement, farm, or business....would go and ask for the money in cash.  Primary aim....to deposit it into their safe deposit box.

Banks would strongly caution people NOT to do this.  Then most banks would say that they will cooperate but right now....the max in cash to release is  $10,000.  Overnight, this will scare the crap out of most Americans.

Step Two:  As the limit is established and you realize....it's $10,000 for a two-week period.....the next rush will occur with people using money in the bank to buy crypto currency, gold, silver or attempting to move partial amounts to other banks. 

Step Three: Around 10 days into this business, the President gives some address that a special trillion-dollar deal is struck...saving everyone.  Oddly, they still want you to leave your cash in the bank, and not remove more than $10,000 a month.

Step Four: Zero confidence in President comes up about five days into the trillion-dollar gimmick.  Bitcoin by this point will be near $100,000 per coin.  Gold will be near $3,000 instead of the $1,750 price in mid-Feb.   

Step Five: By the beginning of May, the economy has become stagnant.  Credit cards and ATM cards work....but getting cash is fairly difficult.  The DOW by this point has dropped around 4,000 points.

It's not so much that companies are weak.....it's just that more than 160 bank institutions have gone to a level where they can't provide cash any longer. 

Four Observations

 1.  This money that the Chinese sent to Hunter, and onto Joe (via Hunter)....could it just be that the Chinese had way too much money and felt sorry for the Biden 'clan'....that they were 'poor' by Chinese standards?  

2.  Pence theatrical 'show'?  I hate to admit it, but anytime now that he appears on the air....I automatically 'mute'.

3.  Hate to suggest it....but after Trump is arrested this week...with numbers going up...I suspect several Democrats will realize arrests have a positive trend.  So they will try to develop scenarios where they can be arrested and get national attention for their campaigns.

4.  Warren Buffet was supposed to be meeting with White House officials this weekend to discuss the banking crisis.  

From the dozen officials in the room....all will be shocked that Buffet seems to grasp failed business practices and poor banking strategies....something that none of the White House staff can understand.

NYC Funny Justice

 The one odd thing about this NYC attempt to prosecute on Trump....it goes to Alvin Bragg.

So if you went to view 2022 news bits....it's a funny thing.

At that point....say mid-2022, Bragg made some pledge in public that he just wouldn't prosecute misdemeanor resisting arrest.  Even though it was so still written into state law.

Then he pledged to avoid cases involve obstruction of government administrations.

Then he promised not to handle cases involving prostitution....even though that was against the state law.

More or less....Bragg cherry-picks what he does and when he does these attempts to force or not enforce state law.  

Maybe some folks would walk into a Grand Jury and not notice this pledge business....but I would imagine half the people in the Grand Jury business would remember this, and just ask stupid questions why he handle law cases this way.  

Either you are a prosecutor full-time, or you are a political tool for someone.  

I hate to suggest it, but Trump could walk into the court....see some chance to engage in prostitution with some gal, and Bragg couldn't do much about it because of the pledge crap.  

Money Topic

 Over the weekend, just something I noticed.

Across the US, using all banks under FDIC's view....there's around 600 billion in 'unrealized' losses.  

From the chart, you can say since the end of 2021...with bond rates increasing....old bonds were sitting there without any interest from the banks to dump or finding consumers to purchase.  

Desperation is a word I'd use. 

What happens if people start walking into banks to remove their cash or just get it in bills to place in a safe deposit box?  A collapse leading to bank closures.

What the Fed would do, or the President?  I would assume they'd invent 1929-like tactics....a 7-day closure and on reopening, you'd be limited to no more than $1,000 a week being removed.  On paper, your money might exist to the full extent possible, but only with the gov't printing out a trillion-odd dollars to suggest to your satisfaction.

I would also suggest a lot of people just aren't that business-savvy and would believe for 30 days that the temp-closure and weekly limit was a temp thing.  I'm of the mind it could be gov't policy for the remainder of the Biden term.  

But here's the thing.....is the $600-billion unrealized losses the limit?  I would suggest that they'd have to wipe out the losses on paper....to regain your trust.  How'd you make the unrealized losses disappear?  A curious problem, I admit. 

Just something to ponder.