A bank holiday would only be necessary if the "silent run" on the banks morphs itself to the point where many banks are in jeopardy of being taken over by the FDIC at once. If there is a "banking holiday", it would be initiated with a simultaneous action like guranteeing all deposits of any magnitude. This would essentially be a nationalization on the banking system.

Don't laugh about this concept. Just last week the Irish governmenty essentially did this and now many European companies and individuals are moving their funds to Ireland, thus creating a "slient run" on other country banks in the eurozone.

As you know, FDR declared a "banking holiday" a day after he was inaugurated in 1933. This was to give him time to pass legislation to increase his powers to deal with this issue. Here is his radio address.

http://www.youtube.com/watch?v=kFvrL...

I do not thinnk we can rule out this as a current day possiblity to give Hanky and Panky unlimted control of banking. This event would be great for gold , but bad for most people. I certainly hope we can avoid it.

If LIbor Rates and TED spreads do not break below 2% next week, this could really be a rough week or two. I know I will have some extra cash on hand so I can eat just in case something goes wrong.

SilverNut