The First and Last Too-Big-To-Fail-Bank-Liquidation in History

Sign o the times - Lehmans going under

Lehmans Liq­ui­da­tion near­ly brought down the whole glob­al finan­cial sys­tem

There are plen­ty of things to be wor­ried about at the moment. Some­times it
is like the Case of the Miss­ing Cen­tral Bank Gold is pret­ty minor in
com­par­i­son. For exam­ple, the impli­ca­tions of the Lehman Broth­ers Event
are pro­found indeed.

The Lehman Broth­ers event was very unique indeed. One of a kind. It was the first, and the last case of a mon­ster bank being liq­ui­dat­ed and the cen­tral plan­ners soon realised that they had cho­sen the wrong path here. This one bank in 2008 almost brought down the entire sys­tem. If the rumours were to be believed then we were with­in hours of the col­lapse of the entire glob­al finan­cial sys­tem.

For the first time we could see the real and dec­i­mat­ed val­ue of assets dur­ing a liq­ui­da­tion sce­nario in the 2008 envi­ron­ment. Any­one who has been close to any kind of bank­rupt­cy or debt event knows that assets are worth noth­ing and no buy­ers. Cred­it sup­ply was seiz­ing-up and it was almost time for the end.

The Cen­tral Plan­ners watched and learned. If you notice, there have been many oth­er events, banks, coun­tries, and busi­ness­es like since Octo­ber 2008. But none have been allowed to fail. It would cause too much tur­moil and desta­bilise too much infra­struc­ture. The les­son learned here is that it would be much bet­ter to just kick the can down the road. The expres­sion that we have heard so often now. Keep the illu­sion going for a bit longer. But how much longer? Days? Weeks? Years? Cen­turies? This is where we must do our think­ing — how long have we got?

Greek austerity measure start to warm up

Greek aus­ter­i­ty mea­sure start to warm up

Reflect on all that has hap­pened since — Greece, Spain, Por­tu­gal, Ire­land, Italy, Dex­ia, Bankia, AIG, Fan­ny Mae, Irish Banks, Ice­landic Banks, North­ern Rock, and the hand­ful of banks that qui­et­ly fail every Fri­day after­noon in Amer­i­ca. All bar none, have been helped — no liq­ui­da­tion for them. It would be messy.

Wit­ness Mario Draghi and his print­ing press­es, EFSF, any­thing but actu­al­ly let the prob­lems die out. So we print more mon­ey, sell more bonds, and use the mon­ey to kick the can down the road again. But one day this will come to an end.

So I feel that we will not see any more BIG LIQUIDATIONS — They are just too dan­ger­ous — Let’s just draw out a long slow death instead.

This is the proof of QE to Infin­i­ty and beyond — Pur­chase your phys­i­cal gold now while it is still in the 1,700 USD range — In a few years most peo­ple will be locked out from buy­ing (if not already) com­plete­ly — buy sil­ver too. Buy BOTH, with both hands. Now.

Oh, an by the way — start think­ing, plan­ning, and tak­ing mas­sive action now — it’s the best chance of sur­vival for us and the peo­ple we care about.

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