“No matter what the government does, it cannot patch back together the busted market for mortgages, derivatives and especially credit default swaps.
It cannot stop a pandemic of loan losses among large AND small banks as the economy sinks and traditional bank lending goes bad.
It cannot stop the contagion of falling confidence, fear and panic. It cannot outlaw gravity or stop investors from selling. Nor can it turn back the clock and reverse years of financial sins.
So don’t count on Uncle Sam to save your bank, your business, or the economy.
Keep up to 90% of your money in cash.
Avoid bank deposits as much as possible, using mostly short-term Treasury bills or equivalent.”
