Bank Run - Running Scared?
Posted on September 15, 2007
Filed Under Symbolism, Society |
In further development on the theme of economic troubles - as highlighted in Global Symbolism Part One and Part Two; yesterday Northern Rock - one of the largest mortgage lenders in the UK was bailed out by the Bank of England. Basically, Northern Rock was financially over extended. The energetics of this are quite interesting, because it provoked a bank-run…people where queuing outside branches of Northern Rock in order to withdraw their life savings. If the bank goes bust, people loose their money. Of course most people don’t think a bank can go bust, but even if that doesn’t happen - the bank can still block access to your money.
An interesting fact; when you deposit money into a bank you become a creditor to that bank, legally that money is no longer yours, it belongs to the bank.
When these sorts of things occur, there is a general atmosphere of fear. The media for the most part has played their part in perpetuating this fear whilst at the same time trying to keep it in check. Big things are around the corner in the economic sector, and it would pay to have plenty of cash on hand. That said, I really don’t want to contribute to the negative fear generated energy this situation is creating - but as with all things it pays to be aware.
“Queues have formed outside branches of Northern Rock for a second day, amid concerns over the bank’s emergency loan from the Bank of England.
Experts have said customers’ money is safe, but banking sources said about £1bn - about 4-5% of retail deposits - was withdrawn on Friday.
About 250 people queued at the branch in Kingston, Surrey, on Saturday.
Northern Rock has struggled to raise money to back its lending since money markets seized up over the summer.”
A bank-run in the UK after Northern Rock struck financial problems.
A bread-queue in 1945. Is the Northern Rock incident a “sign”?
I am not sure there is really an answer at this point, but all this appears to form part of the ‘run-away train’ feeling on recent global issues. When the media or government say the words; “Don’t panic!” - that is a sure fire indicator that something is up.
I can’t say that this is a surprising outcome though. I really feel for those that have over extended mortgages, some banks (Northern Rock for example) have been lending up to 10 times! the joint household income! It’s obvious that sort of debt is unsustainable.
Large debt is a sign of an unchecked ego (I know this from personal experience!), and the global ego has been left to have a free reign for far too long. Its time is soon to be up - and then the global shadow will start showing its ugly face. In the long run it will be a good thing as people will get to see the true nature of our governments and systems - and ultimately of themselves. But for the short to mid term I don’t reckon it’s quite as pretty.
Anyone else have thoughts on this? It’s difficult to find many level headed opinions on the subject…
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It is has been pretty quiet on the economic front here in Canada. If you listen to Canadian news, you wouldn’t hear too much about the debt problems of the U.S. or Britain. You wouldn’t think there was anything wrong. Our politicians say that Canada’s economy is sound and not to worry. Yes our economy might be ok but that is not going to help us much if our economy is tied to the Titanic south of the border. The U.S. economy will drag ours down with it and there isn’t much we can do about it. Already GM workers in Canada are going to be laid off in the thousands because the cars that they make are not selling in the U.S. because people don’t have the money to buy them. Some Americans were taking equity out of their homes to buy cars, which is not a very good sign.
The average American wage hasn’t kept pace with the cost of inflation so Americans are going into debt to keep up their standard of living. This of course can only go on for so long before the debt becomes unmanageable than people start defaulting on their mortgages and credit card payments. This is what we get when we have an increasing wealth gap between the ordinary worker and the wealthy few. Eventually the gap becomes so wide that it makes the economic system unstable. This is what too much greed by the wealthy few has got us into. The U.S. economy and Canada’s to some extent is kept alive by the ordinary person going into debt to buy things they can no longer afford on their pathetic wages. This is why no money down mortgages have become so popular.
There are some signs that people are getting uneasy in Canada over what is going on in the U.S. economy. Here is an interesting post that somebody made to Life After the Oil Crash Forum about a strange survey they got over the phone about finances.
I got a VERY interesting phone call tonight…and I’m freaked out.
[ Quote ]http://www.peakoilstore.com/forum/index.php/topic,7056.0.html
I think you always know something is up when those in charge say; “Nothing to see here, move along.”
A lot of people over here in the UK seem to be against the idea of withdrawing money from a failing bank; claiming that it will cause the bank to fail even faster. The media has done a very good job of brain-washing. Last I checked I kept money in the bank to keep it safe - not for the benefit of the bank itself (and may I add, not even for the benefit of other people).
In all honesty, the best situation to be in right now would be to have no debt, a bit of cash on hand - and a stash of gold and / or silver. That may sound a bit “survivalist”, but then if the economy is going to tank, it’s best to hedge your bets and keep things as safe as possible.
As for the credit situation in the US; it is pretty much the same deal over here. But a lot of people are burying their heads in the sand, hoping this isn’t an indication of things to come. Truth is, it has been a long time coming - I am only surprised it hasn’t happened sooner.
It’s very interesting to hear how this is being viewed over there in Canada!
Thanks for the link to that forum. A worthwhile read. One of the posts there is very telling; “Where have all my Credit Card offers gone…”
That got me thinking - I haven’t had such an offer through the post for weeks. It’s always the little things that tell the truth, and all too often these little details get over looked.
[ Quote ]mmm…I think got my last credit card offer in August some time. I never really noticed this until reading that post on the forum too.
[ Quote ]After the Bearn Stearns collaspe with the fed bail out, I’ve decided to “ditch” the bank. I don’t earn any interest anyway. My bank caught on to the fact that I’ve started removing my money out over time and has since limited my daily withdrawals. So what does that tell you! I’ve paid off all my debt, have a stash of cash, gold and silver. Never thought the day would come when you couldn’t trust the banks. The banks are losing money and their “woes” are not over yet. I trust my intution.
[ Quote ]