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FDIC Rule Will Return Gold To The Center Of The Banking Universe
Posted: Sat Jun 23, 2012 6:43 pm
by Clive
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Re: FDIC Rule Will Return Gold To The Center Of The Banking Universe
Posted: Sat Jun 23, 2012 7:40 pm
by AdamA
I don't really understand this requirement.
All of the other assets are basically close-to-cash assets. Why would the FDIC view an asset as volatile as gold as a safe asset?
Re: FDIC Rule Will Return Gold To The Center Of The Banking Universe
Posted: Sun Jun 24, 2012 2:57 pm
by Ad Orientem
This is significant.
Re: FDIC Rule Will Return Gold To The Center Of The Banking Universe
Posted: Sun Jun 24, 2012 8:35 pm
by smurff
Nice how they slipped gold back into American banking as a respectable equal. Through the backdoor, of course.
Re: FDIC Rule Will Return Gold To The Center Of The Banking Universe
Posted: Thu Jun 28, 2012 10:29 pm
by atrchi
Clever. So next time the Fed wants to rescue a failed TBTF, all they have to do is buy gold in the open market until the bank is solvent.
Re: FDIC Rule Will Return Gold To The Center Of The Banking Universe
Posted: Fri Jun 29, 2012 3:32 pm
by Lone Wolf
atrchi wrote:
Clever. So next time the Fed wants to rescue a failed TBTF, all they have to do is buy gold in the open market until the bank is solvent.
Very astute observation. While I've no idea whether the Fed would exercise this option, it's very interesting to see that it's there.
It always makes me slightly nervous when the government gets any reason to take an interest in the price of gold, though!
Re: FDIC Rule Will Return Gold To The Center Of The Banking Universe
Posted: Sat Jun 30, 2012 9:31 pm
by moda0306
LW,
I agree. I'd almost have it float completely irrestpective of government tomfoolery (and, preferably, taxation).