Inquiring minds in Canada managed to slog through a massive 433 page budget proposal and discovered Depositor Haircut Bail-In Provisions For Systemically Important Banks.
Sure enough. Right on page 145 (PDF page 155) of the Canada Economic Action Plan for 2013 We see …“The Government proposes to implement a bail-in regime 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 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.”
In case you are unfamiliar with bank parlance, deposits are not “assets” they are “liabilities”. A plan that would turn “certain bank liabilities” into regulatory capital is a plan to confiscate deposits.
h/t lots of you.
Everyone seems to forget what Iceland did when faced with a banking crisis. They let the bank go bankrupt, as it should, and threw the bankers in jail, where they belong.
When Canada’s ABCP market froze up the media failed to take any notice. The government had to step in as a lot of people were lining up lawyers to take the banks to court. The ABCP fiasco was tiny compared to the rest of the derivatives market.
Thanks to fractional reserve banking even the best Canadian banks are insolvent by definition. The jig was up in 2008 but it is becoming hard to continue to hide it.
Don’t know that anyone here reads EU Referendum, but to say that the banks in Cyprus saw this coming would not match the evidence.
http://www.eureferendum.com/blogview.aspx?blogno=83767
So many little things should of been done, give them shares in the new bank ect.
Who owns these banks, one of them is multi-billionare.
Now this sets a new way to do business, the banks can print money out of thin air and it fails.
Well, we are not even going to bail them out, we can just steel it from you.
I don’t know about you, but I pulled my money out of the bank. Mark my words, if you look at the S&P 20 year you will see we are at the top of a hill and headed into the worst recession/depression we have ever seen. Unfortunately for us, we have the worst prime minister ever, with no plan to fix things. Lets keep this fiat economy going not cut any thing, let the banks rip us off, they are my friends, and the sheeple think its great.
I blame the west, as they cant see through their oil stained glasses, cant see how the rest of Canada is falling apart.Manufacturing is gone, this is not a new trend with the rich getting richer and the poor left behind, students graduating with 100,000 dollar debt and no job or future.
How about buy a good heavy safe, put it in your basement, anchor it in concrete and don’t tell anyone about it. Your money will be as safe as can be. Perhaps put some of it in Gold and Silver in case the currency itself is grossly devalued. And don’t forget to buy a gun and some bullets. You just never know when the food will run out.
A good heavy anonymous safe is an excellent investment along with a ready supply of gold and silver. I totally go along with several good firearms and an appropriate stock of ammunition ;-).
I wonder about simply moving some funds to brokerage accounts that may be less affected by bank related issues. Might that not at least partially ease some of the concerns? I realize that brokerages still rely on banks to a substantial degree but not necessarily consumer centered banks, more business centered institutions as I understand it.
A mattres safe is a poor example for alternatives to the bank. However, a mason jar with some gold and silver buried in a safe place would be more secure and gain more interest than any bank can offer. That said, the old saying about; “give a crook an gun he’ll rob a bank, Give a crook a bank, he’ll rob a nation”, seems apropos watching the meltdown of central banking globally. (Cyprus is now contemplating an Icelandic solution)
It is wise, not paranoid, for Canadians to feel no more secure than a Cyrpriot because any government that can morally justify underwriting a private bank’s losses with extorted taxpayer revenues (CDIC/bailouts) or allow banks to raid their own depositors rather than put total responsibility where it belongs (with bank directors), or irresponsibly expanding the fiat currency supply, is untrustwothy enough to change the “rules” when TSHTF and allow full on pillage by insiders. This has been the pattern throughout the 20th century. The only difference now is the corruption is more entrenched and crony banking interests are more aligned with government that ever.
I had relatives who made it through the great depression and that economic trauma taught them two things they took to their graves – never rely on government and never trust a bank/banker. That lesson from the last great depression seems to be as relevant today as it was then.
Tomorrow our RRSP’S are finished, cashed out and forgotten. Leave of absence from work starts in June to offset some of the withdrawals, 6months of golfing and prepping for the coming stupidity will help my wife and I make peace and sense of what is coming.
Remember when it starts its bankers , lawyers and politicians heads on pikes …. I that order.
Good luck all.
” in that order”