Prior to moving to our farm, our family raising home had a two foot high wall chase running along a wall that was six inches deep. The top was two ten foot long 1 X 6 boards with a one foot long 1 X 6 in the middle of the two longer runs. The chase was built to carry a water and gas line through the house for a new addition. Sorry for the long description.
We had nick knacks on the shelf with a glass oil lamp on the middle joint. We dubbed that section our Hole-In-The Wall bank. We owned twenty rental properties and the Hole-In-The Wall always had a zipper bag containing a few thousand dollars in it. It was simple and convenient as we were just po’ folks. The rich folks hide their stash in vaults in Switzerland.
In December Switzerland was screaming for the global legal and financial system to define how big banks must be unwound in the event of them collapsing. Who would be the top dog in keeping all the loot before paying out the depositors? They insisted it be decided immediately.
Why immediately one might ask? Because that country is the banking system to all the world as they have mountain protection to prevent bank robberies. But their two largest banks were in failure and their largest, UBS, was forced to take the other large bank, with the deal all being backed by the Swiss government loan/bailout.
But here we are today, with Jeff’s post revealing that the Evergrande corporation of China has finally been forced to liquidate itself through bankruptcy. As Jeff points out, this has China in a collapse position as well, because of all the derivatives associated with the giant real estate holding corporation.
My Hole-In-The-Wall bank was safe as long as that glass lamp was covering it. But Switzerland does not have a lamp large enough to cover all of Switzerland. Now the country along with all of it’s banks are near collapse as it awaits Evergrande’s shock waves to tsunami them.
The rich must be in absolute terror right now!
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