Well the rumor mill is on full throttle on the internet as I keep getting links and messages about some big bank holiday (bank closure) coming on September 9, 2009. It would seem to make more sense to have the bank holiday on 9/11/9 to commemorate 9/11  but that’s just me.

There are all sorts of theories as to why this bank holiday may be coming from the fact that most states are still insolvent and have no clue or way to pay bills to simple seizure of gold and items in safe deposit boxes to the more exotic international currencies conspiracies but in any event I hope it’s just a crazy rumour nonetheless.

If it is not a crazy rumor then it’s time to have a plan in place to assume that the funds in your bank account may be frozen and unavailable.  An insolvent FDIC won’t come as a surprise to anyone that’s been paying attention the past few months.   I’m actually split 50/50 on this one because unemployment continues to rise and is expected to exceed 10% soon (really 20% using old methodology) and it’s only a matter of time before small business bank losses start taking their toll on banks.    Effectively, we’ve had over leveraged home owners, over leveraged credit card borrowers, and likely over leveraged small businesses and the perfect storm has been building for a couple of years now something has got to pop.