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View Diary: Good thing banks don't want customers, because they're losing them (183 comments)

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  •  Today or tomorrow would be a good day (11+ / 0-)

    This fine post from Friday, November 18, by bex
    http://www.dailykos.com/....
    estimates how much it hurts a heavily 'leveraged' bank to lose even small deposits.  And it has a great tactical idea -- waiting until a day when the stock market is down 5% or more.  That might work out as a great day to kick the banksters while they're down, and kick them in a place where it really hurts.

    The post estimates how much it hurts a heavily 'leveraged' bank to lose even small deposits.  And it has a great tactical idea -- waiting until a day when the stock market is down 5% or more.  That might work out as a great day to kick the banksters while they're down, and kick them in a place where it really hurts.

    To borrow from that post:

    Not to mention, the timing is critical. If we move $1 billion out of Wall Street banks all at the same time, they might suddenly find themselves over-leveraged. When that happens, internal rules about minimum collateral kick in, and they are forced to sell off a bunch of assets (stocks, bonds, mortgages) to get enough cash to prop themselves back up. Usually, this means selling something before it's reached full value. If it happens suddenly, banks have to sell assets at a discount or even take a loss! In other words, if we moved our money after a bad day on Wall Street, it would really hit them hard!
    Personally, I think we should be more selective than just have "Move Your Money Mondays." I'd rather have a sporadic "Move Your Money" day, that occurs every day after the DOW falls 5%. When the DOW falls, cash is king... so it's the ideal moment to deprive them of yours!/blockquote>

    Well, today, as I write this, the Dow is down about 2.25 percent.  For the week it's off 4.43%, and a while ago was flirting with down 5% for the week.  So it wouldn't be a bad day to move money today or tomorrow.

    I'm ambivilent about actually trying to coordinate withdrawls to create a stock market crash.  But the prospect of a steep downward trend over several months ought to be enough to get the banksters' attention.

    We're all pretty strange one way or another; some of us just hide it better. "Normal" is a dryer setting.

    by david78209 on Mon Nov 21, 2011 at 11:37:56 AM PST

    [ Parent ]

    •  How about a 'Move Your Money' Day... (2+ / 0-)
      Recommended by:
      david78209, a gilas girl

      ...on the 17th of every month from this day forward?  And just to add more bite to that bark scars to that bite, how about a massive 'Move Your Money' campaign on January 2?  I would hope the consumer defections from the big banks reaches a fever-pitch before the end of next year.

      Bet the farm that the sooner the big banks start feeling the sting of the people refusing to do business with them, they'll beg Congress to regulate the small banks and credit unions in such a way as to put their existence at risk.  And the big banks will resemble a military junta, with which the people will still refuse to do business.

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