Posted on 06/02/2013 9:03:30 AM PDT by blam
Ready To Be CYPRUSED At A Bank Near You
Stock-Markets / Financial Markets 2013
02, 2013 - 04:42 PM GMT
By: Christopher Quigley
The banking situation in Europe continues to deteriorate rapidly. As a measure of the ongoing crisis the Bail In option used in Cyprus is actually being made European Commission policy. The following is a recent report from the much respected Irish Times:
Proposals under Irish presidency to deal with European bank collapses likely to bail-in large depositors.
Deposits of over 100,000 are likely to be hit in the event of future European bank collapses, according to a proposal put forward by the Irish presidency of the European Council ahead of a key meeting of finance ministers next week.
Discussions on the controversial bank resolution regime, which is likely to see savers with deposits over 100,000 bailed in as part of future bank wind-downs, are due to intensify this week in Brussels, ahead of Tuesdays meeting, which will be chaired by Minister for Finance, Michael Noonan.
We will try to get some guidance from Ministers about the possible design of the bailout tool, one EU official said yesterday.
Under a compromise text proposed by the Irish presidency, uninsured deposits of over 100,000 would be bailed in in the event that a bank is resolved, but depositors would rank higher than other creditors in the event of a wind-down.
In this scenario known as deposit preference depositors would rank at the very end of the process, with other creditors first absorbing losses.
However, some member states have not ruled out the possibility that insured deposits, i.e. deposits under 100,000, would be forced to bear losses in the event of a bank collapse even though these deposits would be likely to be protected
(snip)
(Excerpt) Read more at marketoracle.co.uk ...
Since 2007 Mr. Quigley has written over 80 articles which have been published on popular web sites based in California, New York, London and Dublin.
I would say this...for four brief weeks...everyone in the EU banking industry, and even the US banking industry....were viewing the mess very closely from the distance. Some are weeks away...some months away...and some a year or two away...from the same type event.
What should you learn from the Cyprus banking mess? Greed is mostly what caused it. The big guys walked in the side door of the banks while in crisis mode, and walked a good portion of their money out. The EU tossed enough money to make this come to a conclusion....but the bulk of the losers? They are all regular people who had between $120,000 and a million. Not the super rich, but the next step down. Some lost their life savings, and will be living a marginal existence for their remaining years.
You should take three lessons here to heart. First, If you have more than $250,000 in your bank (even split between the savings and checking)....you are screwed for the overage. Second, your banker is not your friend, and will not be there to explain where the rest of your money went. Third, your Congressman, Senator and President will be the last people on Earth to truly save you, because the endless pit they will borrow money from to save your bank....is really the tax revenue pit, and your taxes can only go up.
It’s already happened. The Fed, through its QE programs, has effectively taken part of your net worth to fund the Obama deficits.
My relatives over their inherited large sums just a few months ago from their uncle and brother. I bet this weighs heavy on them.
Just think if Obama could really fix our economy but nationalzing our Bank accounts, IRA, 401K funds and stock in Public companies. They we really can be like Kenya.
You see the wealthy keep getting rich with inheritance. They should have taxed it at 90% and effected redistribution of wealth. Ya that’s the way to fix the system.
Executive Order 13603s Emergency and Non-Emergency Powers
One of the most frightening Obama edicts to come down the pike is Executive Order 13603 on National Defense Resources Preparedness, issued a little over a year ago, on March 16, 2012. This executive order is frightening because of its sweeping scope, explicitly declaring that the president and his designated Cabinet and agency heads have authority to commandeer and control:
all water,
all human and animal food,
all transportation,
all energy,
all construction materials,
all health resources,
all farm equipment,
all fertilizers,
all fuels,
and much more.
President Obama declares in Executive Order 13603 his power to carry out these broad usurpations By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.), and section 301 of title 3, United States Code, and as Commander in Chief of the Armed Forces of the United States.
What should be particularly alarming to Americans is that Executive Order 13603 does not merely claim these powers during war time or during a national emergency, but explicitly and repeatedly states that these apply in peacetime and in times of national emergency. It further states that this authority shall be used to promote the national defense, under both emergency and non-emergency conditions.
You are not serious I hope.
That's nothing new. They just recently upped that limit to $250,000, it used to be $100,000. I don't think the government should be in the business of insuring fractional reserve banks anyway. Moral hazard.
Based on his last sentence, I think he’s demonstrating sarcasm.
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