New Bank Bailout Plan: Depositors Pay

Bank of America deposit slip

Will your deposits be safe? How solvent is your bank? Are they derivatives players?

New Bailout Plan: Depositors Pay

The European Finance Ministers have now set the precedent that when banks go broke and need a bank bailout, then  the depositors are the funding source.

What’s wrong with this picture?  When corporations go insolvent it is supposed to be their shareholders lose, not their customers.

Michael Snyder’s analysis of the ongoing fallout of the Cyprus levy tax on deposit holders is one that I will be following in my research. –No Name Attorney

Michael has a B.S. in Commerce from the University of Virginia, a law degree (J.D.) and a Masters of Law in Taxation (LL.M.) from the University of Florida School of Law.

The Global Elite Are Very Clearly Telling Us That They Plan To Raid Our Bank Accounts

By Michael, on March 27th, 2013

Don’t be surprised when the global elite confiscate money from your bank account one day. They are already very clearly telling you that they are going to do it. Dutch Finance Minister Jeroen Dijsselbloem is the president of the Eurogroup – an organization of eurozone finance ministers that was instrumental in putting together the Cyprus “deal” – and he has said publicly that what has just happened in Cyprus will serve as a blueprint for future bank bailouts. What that means is that when the chips are down, they are going to come after YOUR money. So why should anyone put a large amount of money in the bank at this point? Perhaps you can make one or two percent on your money if you shop around for a really good deal, but there is also a chance that 40 percent (or more) of your money will be confiscated if the bank fails. And considering the fact that there are vast numbers of banks all over the United States and Europe that are teetering on the verge of insolvency, why would anyone want to take such a risk? What the global elite have done is that they have messed around with the fundamental trust that people have in the banking system. In order for any financial system to work, people must have faith in the safety and security of that financial system. People put their money in the bank because they think that it will be safe there. If you take away that feeling of safety, you jeopardize the entire system.

So exactly how did the big banks in Cyprus get into so much trouble? Well, they have been doing exactly what hundreds of other large banks all over the U.S. and Europe have been doing. They have been gambling with our money. In particular, the big banks in Cyprus made huge bets on Greek sovereign debt which ended up failing.

But what happened in Cyprus is just the tip of the iceberg. All over the planet major financial institutions are being incredibly reckless with client money. They are leveraged to the hilt and they have transformed the global financial system into a gigantic casino.

If they win on their bets, they become fabulously wealthy.

If they lose on their bets, they know that the politicians won’t let the banks fail. They know that they will get bailed out one way or another.

And who pays?

We do.

Either our tax dollars are used to fund a government-sponsored bailout, or as we have just witnessed in Cyprus, money is directly confiscated from our bank accounts.

And then the game begins again.

People need to understand that the precedent that has just been set in Cyprus is a game changer.

The next time that a major bank fails in Greece or Italy or Spain (or in the United States for that matter), the precedent that has been set in Cyprus will be looked to as a “template” for how to handle the situation.

Eurogroup president Jeroen Dijsselbloem has even publicly admitted that what just happened in Cyprus will serve as a model for future bank bailouts. Just check out what he said a few days ago

“If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?’. If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders”

Dijsselbloem insists that this will cause people “to think about the risks” before they put their money somewhere…

“It will force all financial institutions, as well as investors, to think about the risks they are taking on because they will now have to realise that it may also hurt them. The risks might come towards them.”

Well, as depositors in Cyprus just found out, there is a risk that you could lose 40 percent (and that is the best case scenario) of your money if you put it in the bank.

Read More Here….

 

12 Things That Just Happened That Show The Next Wave of the Economic Collapse Is Almost Here

Michael Synder’s work I am regularly featuring on this website with his permission from his economic collapse blog.

Michael has a B.S. in Commerce from the University of Virginia, a law degree (J.D.) and a Masters of Law in Taxation (LL.M.) from the University of Florida School of Law. 

In this specific article, pay close attention to #1 and #11 of the items.  The reason number 1 (insider CEO execs of major corporations) is important is because despite a company’s press release or what the talking head commentators say on Cable, this is in essence a vote of “no confidence” in the current economic situation.

Number #11 is important because things will get much uglier and trying as the currency war advances.  In currency wars, the victims on the battlefield are not the soldiers but us consumers and families.  It’s like a toxic gas that is odorless and colorless:  You may not see if but you will definitely suffer the consequences.

China is in overdrive to have their currency, which will be partially backed by gold, to replace ours.  They have quietly gone to trading partner after trading partner getting them to not use the U.S. Dollar.  Because of some major trade deals and projects they have made with Saudi Arabia, I believe they are working behind the scenes to get the Saudis to agree to move away from the U.S. “petrodollar” . 

When the Saudis agree to use something other than US Dollars in settling the accounts from selling their oil, look for the life support plug for the dollar to be pulled out of the electricial outlet.     

The biggest obstacle for the Chinese in their efforts is the fact that they are a communist nation. 

Watching the currency war is a must.  Do your own research.  Don’t expect the mainstream media to keep you up to date.  You’re more likely to find out what is going on by monitoring solid financial sites and the European newspapers.–No Name Attorney

12 Things That Just Happened That Show The Next Wave Of The Economic Collapse Is Almost Here

By Michael, on March 3rd, 2013

12 Things That Just Happened That Show The Next Wave Of The Economic Collapse Is Almost Here

Are we running out of time?  For the last several years, we have been living in a false bubble of hope that has been fueled by massive amounts of debt and bailout money.  This illusion of economic stability has convinced most people that the great economic crisis of 2008 was just an “aberration” and that now things are back to normal.  Unfortunately, that is not the case at all.  The truth is that the financial crash of 2008 was just the first wave of our economic troubles.  We have not even come close to recovering from that wave, and the next wave of the economic collapse is rapidly approaching.  Our economy is like a giant sand castle that has been built on a foundation of debt and toilet paper currency.  As each wave of the crisis hits us, the solutions that our leaders will present to us will involve even more debt and even more money printing.  And each time, those “solutions” will only make our problems even worse.  Right now, events are unfolding in Europe and in the United States that are pushing us toward the next major crisis moment.  I sincerely hope that we have some more time before the next crisis overwhelms us, but as you will see, time is rapidly running out.

The following are 12 things that just happened that show the next wave of the economic collapse is almost here…

Read More Here