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I think a related issue is that there has been a "silent run" on the major European banks over the past few months, and it has been accelerating in recent weeks. Not much has been said about it in the media, except for a couple of low-key stories I ran across. Confidence in the Euro is waning, as is confidence in the willingness or ability of the European countries to actually deal with their structural problems.
This type of bank run isn't what we saw in "It's A Wonderful Life". Instead of people and institutions rushing into the bank lobby demanding their cash, they are slowly drawing down their balances and transferring them to a safer place - trying to do it gradually without attrracting too much attention.
So if this is correct, one thing it illustrates is if you're really concerned about safety & protection of your principal, the only game in town is anything backed by the full faith and credit of the US government, in spite of all this country's economic problems.
Last edited by JohnH; 09-27-2011, 07:40 AM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith
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