Do you ever think about these stories before you post links on HC? The first two are just silly:
"- CME Implements $400 wide gold circuit breakers for vast price swings".
By the time the price of gold has gone $400 in a trading session it will probably be a bit late for a five minute circuit breaker to do any good. By $400 half the clearing participants will be broke already.
(Silverdoctor may have got the story wrong. The rumour I heard was that CME were instituting a $100 circuit breaker, which makes more sense, even if it wouldn't make much difference.)
"– U.S Treasury seeks ‘Survival Kits’ for Federal Bank Examiners"
This is funny (in a sick sort of way).
This assumes that FDIC and OCC officials won't be able to go home or find food while they are assessing and maybe winding up failed banks during a crisis so bad that the food distribution and transport has broken down.
I suggest that in such a crisis the US government would send their bank supervisors home and use these resources to support emergency services, police, national guards and the Army in the administration of marshall law.
"– U.S. Taxpayers Now On The Hook For $303 TRILLION in Wall Street Derivatives"
This should be taken more seriously, but for other reasons.
US taxpayers are "on the hook" for Wall Street derivatives because the US government will never walk away from the US banks in a systemic crisis. I sympathise with the disgust at the roll back of Dodd-Frank, but I think that we are seeing the results of heavy lobbying from US banking interests rather than preparation for an expected crisis.
I won't rush off and buy gold on the strength of this story.
