“Panic Buying of Food in New Jersey?”
NewRoom
“Supermarkets in northeastern New Jersey
are literally swamped with customers tonight, so much so that in some
locations like Hoboken, lines are literally around the store to get it!
It is a rather unusual situation since there are no closures or
shortages of any kind, so SuperStation95 sent one of our intrepid
editors, Chris Rivera, to ask what- if anything- is going on? He
reports below:
“ShopRite in Hoboken, NJ is one of the
largest supermarkets in Hudson County, and certainly the largest in this
upscale, preppie, city of one square mile. Situated on the western side
of the mighty Hudson River, one can see the entire New York City
Skyline from just about everywhere in Hoboken. It’s a beautiful city.
So what is it that is causing lines out
the door and wrapping around supermarkets in town? Despite the huge
parking lot, I had to find street parking to head over to the
ShopRite. I found a space about a block away. As I approached, I could
see lots of typical Hoboken folks, chatting with each other as they
patiently wait to get inside. I asked a few, why the big lines?
“Banks in Italy are collapsing” said
Margarie Sytola. ”People can’t get money to buy food, the ATM’s are all
out of cash.” I asked her why a banking issue in Italy would send her to
the supermarket in Hoboken, NJ and she snapped back “The world is
connected. What happens in Europe eventually happens here. I’m not going
to be one of the people caught with nothing if the banks close.”
Jeff Charles, a nearby shopper who
overheard our conversation, chimed-in. ”The banks never stopped gambling
with our money after they were bailed out in 2008″ he said. ”The oldest
bank in Italy, been in business since the year 1472, is going under. If
a bank that old is going under, the rest don’t stand a chance” he said.
George Kiaffas, from Athens Greece was
also waiting in line. He had experienced the bank “holidays’ in Athens
last year before he got out and moved with his family in the US. ”The
bankers are all in it together, around the whole world” he said. ”They
rape the public and when they lose all our money gambling, they get the
politicians to bail them out- but the politicians are broke now, so
there won’t be anybody to bail anybody out” he continued. ”I took what
little money I have out of the bank and I keep it in a safe place now;
they won’t cause me to go hungry ever again” he added.
I thought it strange that these people
all had similar concerns: the banks going under. So I walked around the
corner of the store, smoked a cigarette, and took-up conversations with
people who were so far away, they couldn’t possibly have heard anything
the other folks told me. I told a nearby woman who I was, and that I was
doing a story on why there seems to be a big rush to buy food. Her
name is Irena Miskova from Russia and her answer: “The banks are
collapsing again and there’s no money for the government to bail them
out!”
I was stunned. At that moment, it was
instantly clear to me that this is panic buying of food for fear of a
bank collapse! Here. In America. Hoboken, NJ. Amazing!
I told Irena that here in the US, we
have the Federal Deposit Insurance Corporation (FDIC) which insures all
our accounts for up to $250,000. She replied “Yes, but if you read the
fine print, they can take up a YEAR to start paying your back, and up to
five years to finish the pay back. How will I live over those years?”
Whoa. This woman read the fine print. Nobody EVER reads the fine
print! Hell, even _I_ didn’t read the fine print!
Max Baker, in line ahead of Irena,
chimed in: “The FDIC doesn’t have nearly enough money to pay everyone if
a bank like Citibank or JP Morgan goes under. And with Obama playing
nasty with China over those islands in the South China Sea, we could see
a naval battle with them in the very close future. If that happens,
China won’t finance our debt anymore and Congress will have to print the
money. That triggers inflation and we’ll all be wiped out.”
I was starting to feel very
uncomfortable at this point. How is it that all these average, typical,
everyday people were so informed about world events? How is it that they
keep abreast of this stuff? I’m in the news business and I didn’t have a
clue as to these concerns. Yet here were literally hundreds of typical,
everyday, average people in Hoboken, New Jersey, who are so tuned-in to
what’s going on around the world, that they’re stocking-up on food
because Banks in Italy are failing.
Jermaine Flemming had other concerns. He
talked about the recent violence against police in Dallas and other
cities around the country, and worries that these protests are getting
out of hand. ”They keep attacking the cops and sooner or later states
are gonna call out the national guard; then none of us will be able to
go out to the store to get anything” he said. He said it’s better to
have extra food for his family for a couple weeks, and not need it, than
to need it and not have it.
As I was talking to these folks, several
large tractor-trailers were pulling-into the loading docks at the back
of the store. So I walked over to see what I could find out from those
guys. To a man, they all said they were not authorized to speak on
behalf of the company, but they told me some basic info. Each
supermarket has computers which track inventory. When the computers see
that items are running low or sold out, they automatically place an
order with their supplier, Wakerfern Corporation, and replacement
inventory is on a truck the very next day. Wakefern, they say, has
gigantic warehouses and there are no shortages of any food items at all.
I left the store in a sort of stunned
silence. I felt so out-of-the-loop. So unprepared. So many people
talking about banks in Italy, and even worried about the effect of the
violent “Black Lives Matter” protests. These folks are all thinking
ahead. I felt like I was so pre-occupied with the here-and-now, I wasn’t
paying attention to what was clearly on the horizon. How is it that
they could see it so clearly while I didn’t have a clue? Then I
realized, all these people were older than me. I’m in my early
30′s. Most of them were in their 50′s or 60′s. They’ve lived
longer. They know more. That’s how life works.
I called my wife from my cellular phone
and told her what was happening. She was taken aback, and immediately
told me she was heading out to the store to stock-up on long-term food.
Big bags of rice, bags of beans, boxes of pasta, jars of sauce, canned
meats, veggies, fruits, stuff that will last a good long time. I agreed
it was the right thing for us to do. Like Jermaine Flemming said, it’s
better to have it, and not need it, than to need it, and not have it. So
much for the space in the basement I was going to use as my “man
cave.” Oh well, and so it goes.”
The Economy: “Bank Runs Have Begun in Italy, ATMs Being Emptied”
“We have numerous reports of BANK RUNS
taking place right now throughout Italy. Reports of lines of people at
ATM’s are draining the automatic tellers of all cash. This comes after
weeks of speculation about the health of several Italian banks,
including the oldest Bank Monte dei Paschi, which has been in business
since the year 1472 – twenty years before Columbus discovered America!
Snce March of this year, SuperStation95
has been reporting the Italian banking system is a “leaning tower”
heading toward collapse at literally any moment. And as Italy’s banks
begin to go down like dominoes, it is going to set off financial panic
all over Europe unlike anything we have ever seen before. We even wrote
about the troubles in Italy back in January, but since that time the
crisis has escalated. At this point, Italian banking stocks have
declined a whopping 68 percent since the beginning of 2016, and when you
look at some of the biggest Italian banks the numbers become even more
frightening.
Shares of Monte dei Paschi were down 4.7
percent, and they have now plummeted 86 percent since the start of the
year. Shares of Carige were down 38 percent, and they have now plunged a
total of 88 percent since the start of the year. This is what a
financial crisis looks like, and just like we are seeing in South
America, the problems in Italy appear to be significantly accelerating.
So what makes Italy so important? Well,
we all saw how difficult it was for the rest of Europe to come up with a
plan to rescue Greece. But Greece is relatively small– they only have
the 44th largest economy in the world. The Italian economy is far
larger. Italy has the 8th largest economy in the world, and their
government debt to GDP ratio is currently sitting at about 132 percent.
There is no way that Europe has the resources or the ability to handle a
full meltdown of the Italian financial system. Unfortunately, that is
precisely what is happening. Italian banks are absolutely drowning in
non-performing loans, and represents “the greatest threat to the world’s
already burdened financial system.”
As this “run” continues, Italian
banks will fail and be closed. Once they are closed, it will begin to
take out big banks elsewhere in Europe, from whom the Italian Banks have
borrowed. That will spark bank runs in Europe, and some very (VERY)
large banks in Europe will fail. Once that happens, it will hit Banks in
the USA… game over.
We encourage readers in the rest of the
world to have CASH MONEY in their possession at home, in case banks are
closed for a “bank holiday” which could last for WEEKS. If the banks
are closed, CREDIT and DEBIT CARDS WILL NOT WORK. You have to have
enough cash to survive, enough to buy FOOD and perhaps FUEL. Never mind
paying bills; this could end-up being “survival.” Folks without cash
will starve.
Earlier today in Rome: Eurogroup
head Jeroen Dijsselbloem earlier today said he was not “particularly”
worried about Italian banks. More interesting was his insistence that
“there have always been and will always be bankers that say ’we need
more public money to recapitalize our banks…. and I will resist that
very strongly because it is, again and again, hitting on the taxpayer.”
He then added that “the problems with the banks need to be sorted out in
the banks and by banks.” He sided further with Germany’s Angel Merkel
camp when he said that he finds the ease in which bankers ask for public
funds to sort out problems is “very problematic.”
Dijsselbloem added that “there has to
come an end to” bankers asking politicians to solve their problems. His
statement comes just a day after David Folkerts-Landau, the chief
economist of Deutsche Bank,called for a €150 billion bailout for
European banks, confirming that it is no longer just an “Italian” issue.
Dijsselbloem’s further comments showed that he won’t be easily swayed
absent a market-wide panic and/or a steep slump in the economy. “I think
they’re talking constructively to try and find solutions within the
European frameworks,” says Dijsselbloem before a meeting in Brussels
Monday cited by Bloomberg. “Yes, there are issues of non-performing
loans in the Italian banks, but that’s not a new issue. It needs to be
dealt with. It will have to be dealt with gradually. There will be no
big solutions. It’s not an acute crisis. That also gives us some time to
sort these things out. So as long as the authorities in Italy and the
banking authorities are constructively talking, I think we should allow
them the time to do that.
BRRD rules are clear. They are, of
course, also strict in the sense that they make very clear when there
needs to be a bail-in and who needs to be bailed-in in what order. And
within that framework a solution still can be found. I mean, you still
have to deal with banks sometimes. And it’s still possible. But it has
to be done within those rules.”
Customers wait for access to ATM’s
He wasn’t the only one. Also today
Austrian Finance Minister Hans Joerg Schelling says he has “no” sympathy
for bending bank bail-in rules. ”Europe has few rules, but these rules
must be adhered to. And we can’t discuss the rules every two years. If
we give ourselves rules, we must apply them.”
His punchline was one we first noted two
weeks ago, when Renzi tried to scapegoat the Italian push for a bailout
on Brexit: “What’s happening in Italy has nothing to do with Brexit.
The non-performing loans under discussion for offloading into a bad bank
have been around for many years and have nothing to do with Brexit. One
shouldn’t use Brexit as an excuse for one’s own failures. I expect
there to be a tough position” toward Italy.
Needless to say this was the worst
possible news for an Italian banking sector which many view as the next
contagion hotspot, and which as the chart below shows continue to trade
at crisis level.”
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Related:
“Charting The Epic Collapse Deutsche Bank, The World’s Most Systemically Dangerous Bank”
- https://www.superstation95.com/index.php/
“Another 2008 Similarity Is Afoot”
(Oh no, this is magnitudes bigger and worse… – CP)
“What Economic Recovery? 62% of Americans Don’t Even Have $1000 in Savings”
(Sound familiar, Good Citizen? – CP)
Soon, to a neighborhood near you! And then – what?