"One should doubtless keep an open mind...though open at both ends, like the food pipe, and have a capacity for excretion as well as intake." -- Northrop Frye, 'The Great Code'
Wednesday, March 27, 2013
Cyprus - a lesson in the real reason for gun control
The people of Cyprus rolled over when Euro "banksters" raided their savings. Would Americans? Would Canadians? Ezra wonders:
Ezra and other Canadians might just want to read some of the budget detail
For those that think that it could not happen here (the confiscation of a portion of savings account to bail out the banks) then think again. See below from our proposed federal budget:
From Page 144:
"The Government also recognizes the need to manage the risks associated with systemically important banks—those banks whose distress or failure could cause a disruption to the financial system and, in turn, negative impacts on the economy. This requires strong prudential oversight and a robust set of options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable."
In other words, just in case worse comes to worse and the big banks are at risk of failure as when the housing bubble bursts as it likely will at some time, then the government must have some way to save the “too big to fail” banks. For explanation of that “robust set of options”, see Page 145 of the budget below.
From Page 145:
The Government proposes to implement a bail-in regime (you got to love the gobbly-gook) for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders (you really think they are going to consult you) on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants...
The salient point is that The banks “certain liabilities” are your assets or your savings account, term deposits or whatever else the government decides at that point is “certain bank liabilities” within their “robust set of options”.
Don’t confuse the deposit insurance system covering the possible pillaging of your savings. Insurance only comes into effect if the banks actually fails. If they use your money to prevent failure then………….!
Yesterday the federal regulator of banks stated that they were tightening up the rules and said that “The banks will need to have what’s known as a common equity tier 1 (bank stocks and cash on hand) ratio of eight per cent as compared with seven per cent for smaller, less important financial institutions as of Jan. 1, 2016.” You see they are giving them lots of time, until 2016 to bolster their ability to pay out nervous depositors. They, the government, are clearly getting nervous.
You know, the bankers will never lose under the current system, the rapacious _ricks will continue to fill their pockets.
Hate to say it but if President O. or PM H. got wind of how easy this was then I dare say that it will happen here easily. What would we Canadians or Americans do? Well probably just “take it” while we hope to at least get a kiss before, during or after!
Ezra and other Canadians might just want to read some of the budget detail
ReplyDeleteFor those that think that it could not happen here (the confiscation of a portion of savings account to bail out the banks) then think again. See below from our proposed federal budget:
From Page 144:
"The Government also recognizes the need to manage the risks associated
with systemically important banks—those banks whose distress or failure
could cause a disruption to the financial system and, in turn, negative impacts
on the economy. This requires strong prudential oversight and a robust set of
options for resolving these institutions without the use of taxpayer funds, in the unlikely event that one becomes non-viable."
In other words, just in case worse comes to worse and the big banks are at risk of failure as when the housing bubble bursts as it likely will at some time, then the government must have some way to save the “too big to fail” banks. For explanation of that “robust set of options”, see Page 145 of the budget below.
From Page 145:
The Government proposes to implement a bail-in regime (you got to love the gobbly-gook) for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its
capital, the bank can be recapitalized and returned to viability through the
very rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult
stakeholders (you really think they are going to consult you) on how best to implement a bail-in regime in Canada.
Implementation timelines will allow for a smooth transition for affected
institutions, investors and other market participants...
The salient point is that The banks “certain liabilities” are your assets or your savings account, term deposits or whatever else the government decides at that point is “certain bank liabilities” within their “robust set of options”.
Don’t confuse the deposit insurance system covering the possible pillaging of your savings. Insurance only comes into effect if the banks actually fails. If they use your money to prevent failure then………….!
Yesterday the federal regulator of banks stated that they were tightening up the rules and said that “The banks will need to have what’s known as a common equity tier 1 (bank stocks and cash on hand) ratio of eight per cent as compared with seven per cent for smaller, less important financial institutions as of Jan. 1, 2016.” You see they are giving them lots of time, until 2016 to bolster their ability to pay out nervous depositors. They, the government, are clearly getting nervous.
You know, the bankers will never lose under the current system, the rapacious _ricks will continue to fill their pockets.
Hate to say it but if President O. or PM H. got wind of how easy this was then I dare say that it will happen here easily. What would we Canadians or Americans do? Well probably just “take it” while we hope to at least get a kiss before, during or after!
ReplyDeleteMish has more on the new Budget measures here:
ReplyDeletehttp://globaleconomicanalysis.blogspot.ca/2013/03/canada-discusses-forced-depositor-bail.html