by Karl Denninger, Market Ticker:
There’s only one problem — your belt sucks and even a 5-point harness wouldn’t help with what’s coming.
I’ve been warning about this for a long time. I’ve been laughed at too, especially as the market screamed higher over the last few years. But as I’ve repeatedly noted, stock prices are immaterial until and unless you sell your holdings; they’re nothing more than a ghost in a machine until you do that.
This is very different than $100 bills in your safe, or alleged cash in a savings or checking account — provided, of course, that said amount is below FDIC limits (go ask depositors OVER FDIC limits when IndyMac blew up how that worked out for them. And oh, by the way, it was later proved that IndyMac collapsed due to accounting fraud that the FDIC knew about and deliberately ignored with the individual who overlooked the backdating of deposits having done the same thing during the S&L crises decades earlier; that is the government caused those depositors to be screwed out of their money — on purpose.)