In plain English, Federal regulators are preparing for the day when Americans realize the banking system is an enormous sham and attempt to withdraw their money all at once. That’s when Americans will realize that the money, legally speaking, isn’t theirs.
Anyone who allows a bank to hold their wealth ought to have their head examined, especially considering that yields on deposits are a little over 1% at best. But most Americans are too stupid to understand this, constantly falling for cheap marketing come-ons such as “rewards.”
“At this point it is without doubt that even the government understands that when things turn sour, and they will, the run on the bank will be unavoidable: their solution – prevent money from being dispensed, when that moment comes. The thing about crises, be they liquidity, solvency, or plain-vanilla, is that ‘price discovery’ occurs all at once, and at the very same time. And all too often, investors ‘discover’ they were lied to, as the emperor, in any fiat system, always has no clothes.”
Read more at Jesse’s Café Americain.