why buy gold doesn't help a bank, page-8

terrylei,

'some kind of national insurance against this sort of thing'

That is exactly what bank guarantees and the FDIC are, they protect depositors up to a specified amount, but if you're suggesting that the NAB, Westpac or ANZ become insolvent and their depositors lose their savings I cannot possibly agree.

The loss of a guarantee would impoverish the banks, crash the property market, lead to criminal activities on a huge scale, hoarding of cash, tax evasion and the cashless society would disappear. There would be no credit cards, the economy would freeze, mass unemployment and probably starvation would follow because the farming sector would be so badly affected.

I doesn't add up, gold might have been a currency hundreds of years ago, that's all over, but dimwitted Max Keiser and Stacy Herbert (who I've just been watching on TV) haven't caught on yet.

I think the goldbugs just can't get over JP Morgan and would love to see them go under, but it's not gonna happen, the goldbugs are gonna go under first.