If The CIO Of The World’s Biggest Bond Fund Doesn’t Trust The Global Banking System, Why Do You?

19 Apr

From CNN Money (h/t MacroBusiness reader “Mav”):

When Wall Street nearly collapsed

Would panic prevail? That was the question gripping the world in the days surrounding the fall of Lehman Brothers on Sept. 15, 2008. One year after that terrifying Monday, the people who struggled to cope with the financial crisis share what they were thinking as chaos broke out.

Mohamed El-Erian: Hit the ATMs

mohamed_el-erian

Chief Executive and Co-Chief Investment Officer of PIMCO

On the Wednesday and Thursday after Lehman filed for Chapter 11, I asked my wife to please go to the ATM and take as much cash as she could. When she asked why, I said it was because I didn’t know whether there was a chance that banks might not open. I remember my wife sort of pausing and saying, “Are you serious?” And I said, “Yes, I am.” We had long felt that the world was increasingly in disequilibrium, and by March of 2008 we decided that things were critical and that the unthinkable was thinkable…

The firm had been preparing for catastrophe for a long time, but even so, there was a sense of apprehension because things were accelerating very, very quickly.

See also:

* Think You’ve Got Cash In The Bank? Think Again
* Our Banking System Operates With Zero Reserves
* The Bank Deposits Guarantee Is No Guarantee At All
* G20 Governments ALL Agreed To Cyprus-Style Theft Of Bank Deposits … In 2010
* The World’s Most Immoral Institution Tells You How

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