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Related: About this forumBail-Out Is Out, Bail-In Is In
Bail-Out Is Out, Bail-In Is In
Posted on Apr 30, 2013
By Ellen Brown, Web of Debt
This piece first appeared at Web of Debt.
With Cyprus . . . the game itself changed. By raiding the depositors accounts, a major central bank has gone where they would not previously have dared. The Rubicon has been crossed.
Eric Sprott, Shree Kargutkar, Caveat Depositor
The crossing of the Rubicon into the confiscation of depositor funds was not a one-off emergency measure limited to Cyprus. Similar bail-in policies are now appearing in multiple countries. (See my earlier articles here.) What triggered the new rules may have been a series of game-changing events including the refusal of Iceland to bail out its banks and their depositors; Bank of Americas commingling of its ominously risky derivatives arm with its depository arm over the objections of the FDIC; and the fact that most EU banks are now insolvent. A crisis in a major nation such as Spain or Italy could lead to a chain of defaults beyond anyones control, and beyond the ability of federal deposit insurance schemes to reimburse depositors.
The new rules for keeping the too-big-to-fail banks alive: use creditor funds, including uninsured deposits, to recapitalize failing banks.
But isnt that theft?
Perhaps, but its legal theft. By law, when you put your money into a deposit account, your money becomes the property of the bank. You become an unsecured creditor with a claim against the bank. Before the Federal Deposit Insurance Corporation (FDIC) was instituted in 1934, U.S. depositors routinely lost their money when banks went bankrupt. Your deposits are protected only up to the $250,000 insurance limit, and only to the extent that the FDIC has the money to cover deposit claims or can come up with it. .....................(more)
The complete piece is at: http://www.truthdig.com/report/item/bail-out_is_out_bail-in_is_in_20130430/?ln
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Bail-Out Is Out, Bail-In Is In (Original Post)
marmar
Apr 2013
OP
eridani
(51,907 posts)1. Please share this with your state legislators
Especially those on board with establishing state banks.
AnneD
(15,774 posts)2. A must read...
Please cross post in the Stockmarket watch thread...