Yellen: Decision to bail out large depositors entirely arbitrary.

The most important bit of congressional testimony last week, from Janet Yellen.

If you’re not following along with the growing banking crisis — it’s probably time to tune into that.

Dog Kings

While Dog Kings like Janet Yellen can try as they might — people are going to do what people do. Whether there are bank runs is entirely up to the collective subconscious of the general public with respect to the information they become aware of, and of equal importance — the timing of that information.

Readers have asked “What should I do? Should I pull my money out of the banks?”

Given that there is a massive credit contraction period starting (meaning it will be much harder to get loans) every minute now, perhaps some of this will be worthwhile for readers: