Ann: Quarterly Activities Report , page-16

Legume

I think there is a government system in place that guarantees $250k per person in each bank, so most will not lose their life savings.

What would happen is that the shareholders could get wiped out. Think of all the mums and dads and superfunds that have bank shares and depend on that income stream. It would be disastrous for them.

Banks will start to call in their loans and that will trash all asset prices and result in an economic depression.

I doubt gold's price would hold up.

Japan managed to ensure a steady deflation of asset prices post 1990, and I think we can do the same.

But first I think they will try to keep the system from crashing in Europe/US/Japan/China for a bit linger (or not).

It is a worry.

loki