The Cyprus “bail-in” where the banks literally stole depositor’s savings accounts to pay for their massive debt load was decried as a “one off” of it’s kind and “financial advisors” world-wide are scrambling to “spin this” as a one time necessity in a land far away!
When was the last time you believed everything from a bank’s lips were TRUE?
There is a world wide movement right now in the works to literally dismantle the whole financial safety net for hard working honest workers who thought their savings and deposits were SAFE and SECURE!
Too big to fail is the new mantra being spouted by Governments around the world and that Governments must do anything they can to ensure these TBTF Banks exist ad infinitum!
These oligarchs should realize that in this day and age of instant communications that they can’t get away with crap like this any more.
Submitted by Phoenix Capital Research on 04/08/2013
What happened in Cyprus isn’t a “one off” event.
The financial media and elite have been trying to convince the world that Cyprus was a unique situation… a “one time” deal… and that our money is safe in the banks.
This is untrue.
Spain, Canada, and New Zealand have already proposed similar measures through which individuals’ SAVINGS accounts would be used to prop up the banks during times of Crisis.
It’s called a “bail-in,” but really it’s “THEFT” plain and simple. The banks made the terrible mistakes that rendered them insolvent. They (the banks) should simply fail. But instead of failing, the regulators want to keep the banks in business… using YOUR money.
Why is this?
- The regulators don’t have the money to actually insure deposits that they claim.
- Politicians realize that people are fed up with the public funding bank bailouts… so they’re targeting individual savers in the banks that are in trouble.
It’s a simple question of math regarding #1. Banking deposits are in the trillions of Dollars and most deposit insurance entities only have a few billion Dollars in funds. Obviously, if a large bank were to fail under these circumstances there wouldn’t be the funds to cover deposits…
Regarding #2, politicians have begun to realize that the public simply won’t stomach another Federal bailout of the banks. So instead of getting everyone and their children to chip in by using the public’s funds… they’re going after the deposits of a select few people who have their funds IN the troubled bank.
Their thinking is that if you can’t steal a little from everyone, you might as well try to steal a lot from a few people.
Could this happen in the US?
You better believe it. In fact, the FDIC has already put forth a proposal to do EXACTLY this in the event of a Crisis.
Just four months ago, the FDIC drafted a formal strategy in which it suggested that during the next Crisis, it can…
- Decide WHAT banks are systemically important.
- Take control of any “systemically important” bank that it deems at risk of default.
- Once in control of the bank, YOUR savings deposits can be “written down” in value (meaning you LOSE money you thought was yours) as part of the bank bailout.