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To: blam

It’s really horrible. Banks have absolutely no ownership interest in their depositor’s money. To the extent that deposits are insured, the insurer would pay the banks and then go after the banks in subrogation. As to uninsured amounts, the depositor would proceed directly against the banks to collect. But under no circumstances does a bank have the right to simply take the property of another - i.e. the depositors - and use it to write down other debts it owes to other parties, including regulators. This is really the most lawless thing imaginable. They might as well have gone to every Cypriot who owns a car and taken their vehicle and sold it at auction and pocketed the money. It’s exactly the same thing - theft. This is larceny pure and simple.


39 posted on 03/24/2013 8:06:08 PM PDT by Gluteus Maximus
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To: Gluteus Maximus

Think of the example this sets. If I was rich in another EU country, my money is gone tomorrow.


44 posted on 03/24/2013 8:17:09 PM PDT by EEGator
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To: Gluteus Maximus

Vive La difference! Vive La France! USA don’t go “gay”! To many urban “sweet things” are oh so metro-sexual, yuck; hay pal, don’t let that bulge in my pants turn you on because it ain’t what you think (it’s my .38). Just seeing guys kiss makes me want to puke...


54 posted on 03/24/2013 8:53:50 PM PDT by RHS Jr (Pity the banksters when Jesus comes)
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To: Gluteus Maximus

“It’s really horrible. Banks have absolutely no ownership interest in their depositor’s money. To the extent that deposits are insured, the insurer would pay the banks and then go after the banks in subrogation. As to uninsured amounts, the depositor would proceed directly against the banks to collect. But under no circumstances does a bank have the right to simply take the property of another - i.e. the depositors - and use it to write down other debts it owes to other parties, including regulators. This is really the most lawless thing imaginable. They might as well have gone to every Cypriot who owns a car and taken their vehicle and sold it at auction and pocketed the money. It’s exactly the same thing - theft. This is larceny pure and simple.”

What you say is all true. But banks can still go bankrupt from making bad investments, which is what has happened in Cyprus.

What people don’t realize is that when they deposit money in a bank, it’s not for the purpose of the bank to hold on to your money for your convenience, but what you are really doing is LOANING your money to the bank! You are actually a lender and not a depositor. This is all spelled out in the account agreement one signs with a bank, and by loaning your money to the bank your are giving the bank permission to use your money pretty much as they see fit, and there is no real guarantee that you’ll get back any of the money you loaned the bank.

Prior to the illusion of FDIC insured deposits (loans) and it’s equivalent in other countries, banks used to go bankrupt all the time, completely wiping out ALL investors’ deposits. That was a big part of the death spiral of the Great Depression and why it was necessary for FDIC insurance to be invented, or otherwise no sane person would ever loan their money to a bank again.

And like in the EU, the FDIC actually only insures accounts up to a certain limit, and for anything over that there simply are no guarantees you’ll ever get the money you loaned the bank back. Period.

Now when banks DO go bankrupt, there are SUPPOSED to be lawful ways in which the remaining assets are distributed to the banks debt holder in an orderly, lawful fashion, the depositors being simply one class of debt holder. That process has worked pretty well in the U.S. recently, but given the propensity of the Obammunists to ignore the law and just do what they feel like, all bets are off for the future.

And in places like Cyprus, it sounds like they didn’t have ready-made procedures for bank bankruptcies anyway, so they had to make some up quickly. One could label such ex-post facto, ad hoc measure “theft”, but the net result to those foolish enough to make giant loans (deposits) to these crappy banks would probably be pretty much the same if Cyprus had a U.S.-like process in place prior to bank bankruptcy anyway, namely the depositors money has simply completely evaporated because the banks made really, really bad investments with their depositors’ loaned money, and they’d wind up with nothing anyway.

And most likely nothing criminal has been involved here either, except maybe criminal stupidity or maybe criminal greed by both the depositors and the banks themselves. Because the depositors were chasing unrealistic returns promised by the bank, and which they the bank delivered by “investing” their depositors money in Greek bonds. Greek bonds were paying extremely high interest rates, but the high interest rates were being paid because it was likely the bonds would fail, which is exactly what happened.

The takeaway lesson here, though, is simply don’t loan your money to a bank. Just keep enough money in your bank account to pay next month’s bills. Even better switch as much of your transactions as possible to cash. It’s actually easier to do than most people think. For example, I live in a small town and pay all of my insurance and property taxes by simply walking in and plunking down the cash. I could do the same thing for my utilities if I wanted. And I never use plastic except when I buy stuff on the Internet.


56 posted on 03/24/2013 8:58:44 PM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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