Get Your Money out of the Bank NOW

Bail-ins

That can never happen.

That can only happen in Cyprus.  It could never happen here.

That could only happen in Cyprus or Greece.  It could never happen here.

That might happen in Europe, but will never happen here.

"It could never happen here."  Is Canada close enough to "here" for you?  Watch this:


"Well we're not Canada.  What do those Canucks with their round bacon and geese that look the same in black and white as they do in color, know anyway?"

It will happen here, simply because nothing is being done to prevent it (or the perceived need for it) from happening.  It's easy to not learn from history of a century ago or longer, but we should be able to remember what happened less than a decade ago.  Virtually everything that was wrong leading up to 2008 still exists today, only worse, and there ain't gonna be no TARP this time.  They already shot that bullet.  This time the depositors will pay.  Don't be one of them.  At interest rates around one percent, why should you?

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source: Public Banking Institute



A Crisis Worse than ISIS? Bail-Ins Begin

While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bail-ins have begun in Europe, and the infrastructure is in place in the US.  

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Bail-in Under Dodd-Frank
That is all happening in the EU. Is there reason for concern in the US?
According to former hedge fund manager Shah Gilani, writing for Money Morning, there is. In a November 30th article titled “Why I’m Closing My Bank Accounts While I Still Can,” he writes:
[It is] entirely possible in the next banking crisis that depositors in giant too-big-to-fail failing banks could have their money confiscated and turned into equity shares. . . .
If your too-big-to-fail (TBTF) bank is failing because they can’t pay off derivative bets they made, and the government refuses to bail them out, under a mandate titled “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” approved on Nov. 16, 2014, by the G20’s Financial Stability Board, they can take your deposited money and turn it into shares of equity capital to try and keep your TBTF bank from failing.
Once your money is deposited in the bank, it legally becomes the property of the bank. Gilani explains:

Your deposited cash is an unsecured debt obligation of your bank. It owes you that money back.
If you bank with one of the country’s biggest banks, who collectively have trillions of dollars of derivatives they hold “off balance sheet” (meaning those debts aren’t recorded on banks’ GAAP balance sheets), those debt bets have a superior legal standing to your deposits and get paid back before you get any of your cash.
. . . Big banks got that language inserted into the 2010 Dodd-Frank law meant to rein in dangerous bank behavior.
Read more.  Do it this time.  Go ahead, click on the link.  I always tell you when it's not worth it.

2 comments:

  1. Another fine post! If ya don't mind, Neil - I'm going to scoop that and post it over at the Thunderbox.

    Don't just take your money out - empty your safety deposit boxes too! And start prepping like mad!

    You are absolutely correct about this Neil, and I will tell you that gubbermint think tanks are chewing on this problem as we speak. They will want to loot your savings but they need to come up with a way to do it that doesn't involve them ending up hanging from a lamp post, with their bloated bodies being used for bayonet practice by an angry citizenry.

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    Replies
    1. Yes, you have an excellent point. Safe deposit boxes are not safe. The law says they can take the contents of those too in the event of a bail-in.

      You're also correct about prepping. Prepping supplies are the best investment a person can make right now.

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