Comments on: Major Companies Hoarding Cash, Preparing for Second Wave of Financial Crisis

By: badscooter

badscooter — Wed, 04 Nov 2009 02:50:44 +0000

I’ll take my truth without the hard left spin, thank you very much. I think it is pretty easy to figure out without relying on Ariana Huffington’s demagoguery. And I’m not sure what you’re quoting with that crack about “genetic fallacy”. Wha?

By: tony bonn

tony bonn — Tue, 03 Nov 2009 12:54:31 +0000

to badschooter – truth is wherever truth is….the genetic fallacy is not an intellectually astute form of “thinking.”

By: badScooter

badScooter — Tue, 03 Nov 2009 04:25:13 +0000

Rocky, you lose serious style points for mentioning those loons at Huffington as a source for a story.

By: E C R Z

E C R Z — Tue, 03 Nov 2009 04:17:52 +0000

Isn’t this hoarding just an aspect of Bernanke’s plan? The ratio of reserves going up is a deleveraging that is equivalent to money destruction. If that is carefully balanced with money creation (newly printed money that does not go into circulation, but into making bank reserves look “bigger” and more “solid”) it should not trigger inflation. The tricky part, of course, is the balance. Print too little and get depression, too much and get inflation. It also requires stopping the printing presses at the right time and keeping the banks from re-leveraging. Personally I don’t have much faith in their succeeding on getting those balances right but, from a theoretical point of view, isn’t that what they’re trying?

By: mark

mark — Tue, 03 Nov 2009 00:45:21 +0000

I can tell you that a major insurance company that i seel for has just announced that they are selling surplus notes to raise $400,000,000 in cash. This is very unusual for this company and i suspect that it is being done for reasons similar to the banks you mention. another major life insurance company announced earlier this year that they bought gold for the first time in the companies 150 year history.