A Closer Look At Bank Bail-Ins And The Black Hole Of Our System
YOU THINK IT CAN'T HAPPEN HERE! Take your head out of the sand!
The bank bail-in rumble is growing louder. After the events in
Cyprus, a small country and potentially meaningless in the eyes of most
people, it seems that bail-in idea has spread like a virus across the
Western world.
Only in the last week, we saw the following developments:
Slovenian parliament has approved bank bail-in rules. (source)
The leader of the Eurogroup Working Group (Thomas Wieser)
revealed that the eurozone should introduce bank bail-in rules from
2016, as reported by the German Der Spiegel. (source)
UK based Co-operative Bank announced a bondholder bail-in rescue plan. (source)
All these events come right after the IMF super tax proposal of
10% on savings accounts of households with a positive net worth in
Europe (reported on this site) earlier this month.
One could rightfully ask the question why this type of measures
are considered in a world which is being flooded with liquidity on a
scale that mankind has never seen before (whether one calls it money
printing, quantitative easing, easy money, or helicopter money).
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