Former Harvard Economics Professor Terry Burnham recently wrote in an article published online that he will be pulling $990K from his Bank of America Account in the next few days. Mr. Terry Burnham has expressed concerns over the safety of the US Banking System.
Lahore, Pakistan -- (SBWIRE) -- 02/04/2014 -- Former Harvard Economics Professor Terry Burnham recently wrote in an article published online that he will be pulling $990K from his Bank of America Account in the next few days. Mr. Terry Burnham has expressed concerns over the safety of the US Banking System. This is precisely what Robert R. Prechter Jr. the President of Elliott Wave International (EWI) has been warning for quite sometimes. EWI has recently released its 2014 report titled: “The State of the Global Markets-2014 Edition”. This Report can be downloaded FREE.
This is what Terry Burnham says in his article: “Last week I had over $1,000,000 in a checking account at Bank of America. Next week, I will have $10,000.
Why am I getting in line to take my money out of Bank of America? Because of Ben Bernanke and Janet Yellen, who officially begins her term as chairwoman on Feb. 1.
Before I explain, let me disclose that I have been a stopped clock of criticism of the Federal Reserve for half a decade. That’s because I believe that when the Fed intervenes in markets, it has two effects — both negative. First, it decreases overall wealth by distorting markets and causing bad investment decisions. Second, the members of the Fed become reverse Robin Hoods as they take from the poor (and unsophisticated) investors and give to the rich (and politically connected).
Why do I risk starting a run on Bank of America by withdrawing my money and presuming that many fellow depositors will read this and rush to withdraw too? Because they pay me zero interest. Thus, even an infinitesimal chance Bank of America will not repay me in full, whenever I ask, switches the cost-benefit conclusion from stay to flee.”
About Terry Burnham
Terry Burnham is a former Harvard Economics Professor. Terry Burnham is also the author of Mean Genes and Mean Markets and Lizard Brains.
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