Run Rumours
Friday, March 14th, 20082 Days ago I heard a rumour about UBS solvency but I didn’t really believe it. What I do believe is that rumours like that trigger bank runs. Thus when I hear rumours like that floating around I probably should have sold all banking stuff. The big Canadian banks have a zero percent chance of a run but if say Citi or someone has a run then I would lose well over 5-10% on my Canadian banks not to mention the Citi freefall. Plus even after recent banking losses the money could then be reploughed back into Canadian banks for a nice ride back up.