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"Bail in" for Greece |
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cobber
Admin Group Joined: August 13 2014 Status: Offline Points: 6035 |
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Posted: July 06 2015 at 8:24am |
Hi Guys, there is talk of "Bail in" for banks in Greece.
If you don't know what this means Google it. Basically the banks who are declared insolvent can then steal money from their depositors to pay the debt thus becoming solvent again.... Sounds crazy but its true.. The IMF (criminals) wrote these law provisions into many government constitutions. You need to be aware of the ramifications if this happens.. Its possibly a house of cards.... When i say the IMF wrote this into many countries laws in the last few years. Trust me they covered most of the world. I found "bail in " provisions written into the Australian banking regulations. It was that secret that the IMF actually wrote another law which was passed by our government stating that anyone talking about it would be fined or go to jail!!!! Gag order!!!! WTF another example the USA has the Dodd-Frank financial reform recently enacted which quietly brought in the Bail in provisions... Why is this a problem? okay, here's how the cards tumble. If Greek bank depositors have their cash stolen, which is on deposit. It will cause instability with in other regions. There is talk of others in countries in Europe in trouble. I think Spain is on a thin edge. If this information gets out, people will simply pull their money out of the banks. All it takes is just a hint of problems and you have a bank run on your hands. Once the news trickles out that most banks of the world have this it will take off like wild fire. Banks will declare a global crisis and then they will enact bail in provisions for all. Banks will be stealing from everyone everywhere!!!! Total financial collapse and the big winner is the banking cartel!! I know its a bit dooms day, but its a possibility. The real problem with "Bail in", is if there is a banking collapse, which is always caused by banks. The banks make off like bandits. So i ask you..... Whats holding them back????? |
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Albert
Admin Joined: April 24 2006 Status: Offline Points: 47746 |
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Good info cobber.
Greek banks prepare plan to raid deposits to avert collapseGreek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears the country is heading for financial collapse, bankers and businesspeople with knowledge of the measures said on Friday. The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said. A Greek bail-in could resemble the rescue plan agreed by Cyprus in 2013, when customers’ funds were seized to shore up the banks, with a haircut imposed on uninsured deposits over €100,000.It would be implemented as part of a recapitalisation of Greek banks that would be agreed with the country’s creditors — the European Commission, International Monetary Fund and European Central Bank. “It [the haircut] would take place in the context of an overall restructuring of the bank sector once Greece is back in a bailout programme,” said one person following the issue. “This is not something that is going to happen immediately.” Eurozone officials said no decision had been taken to wind up any Greek banks or initiate a bail-in of depositors, a process that would be started by the ECB declaring the banks insolvent or pulling emergency loans. Andrea Enria, chair of the European Banking Authority, said on Saturday he was not aware of any plans to introduce haircuts to retail depositors of Greek banks. Greece’s banks have been closed since Monday, when capital controls were imposed to prevent a bank run following the leftwing Syriza-led government’s call for a referendum on a bailout plan it had earlier rejected. Greece’s highest court rejected an appeal by two citizens on Friday who had asked for the referendum to be declared unconstitutional. Depositors can withdraw only €60 a day from bank ATM cash machines, while requests to transfer funds abroad have to be approved by a special finance ministry committee in co-operation with the Greek central bank. Two senior Athens bankers said the country had only enough cash to keep ATMs supplied until the middle of next week. This followed the ECB’s decision this week not to increase Greece’s allocation of emergency liquidity assistance after the bailout programme ended on June 30. The outcome of Sunday’s referendum will determine how quickly Greece
wraps up a new bailout agreement with creditors, a top Greek banker
said. High
quality global journalism requires investment. Please share this
article with others using the link below, do not cut & paste the
article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/9963b74c-219c-11e5-aa5a-398b2169cf79.html#ixzz3f7zGSfnQ “The solvency of Greek banks is not currently an issue, but obviously the banks will be affected by how soon the country enters a new programme,” the same banker said. Greek deposits are guaranteed up to €100,000, in line with EU banking directives, but the country’s deposit insurance fund amounts to only €3bn, which would not be enough to cover demand in case of a bank collapse. With few deposits over €100,000 left in the banks after six months of capital flight, “it makes sense for the banks to consider imposing a haircut on small depositors as part of a recapitalisation. . . It could even be flagged as a one-off tax,” said one analyst. Yanis Varoufakis, Greece’s finance minister, on Saturday accused the country’s creditors of trying to “terrorise” Greeks into accepting austerity. “What they’re doing with Greece has a name: terrorism,” he told Spanish newspaper El Mundo. “Why have they forced us to close the banks? To frighten people.” http://www.ft.com/intl/cms/s/0/9963b74c-219c-11e5-aa5a-398b2169cf79.html#axzz3f7rPY63q |
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KiwiMum
Chief Moderator Joined: May 29 2013 Status: Offline Points: 29680 |
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A few years ago all banks and financial institutions here in NZ were given a deadline by which they had to install bail in compatible computer systems. Failure to install the software would mean they would not be able to operate in NZ. Not many people here seem to have even noticed.
Unlike the UK where they have a level of savings that are guaranteed by the government to be protected in the event of a bail in (GBP 85,000), we have a zero level of guarantee. At the same time as introducing this software, the government here also stopped offering a savings guarantee, and all the banks finished offering insurance against bank failure because the premiums became too high. So we are totally unprotected. The GBP 85,000 level means that one person can have that sum in a bank and it will be protected from a bail in. If they have more then they can lose it, but they can open another account in another bank that is not owned by the same company that owns the first bank, and they can safely have another GBP 85.000. There is nothing to stop a family opening multiple accounts in multiple banks in the different names of their family members and actually having huge savings that would be protected. I suspect this banking software is in all banks, all over the world. Perhaps people just don't know about it.
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Those who got it wrong, for whatever reason, may feel defensive and retrench into a position that doesn’t accord with the facts.
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KiwiMum
Chief Moderator Joined: May 29 2013 Status: Offline Points: 29680 |
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To be perfectly honest, you'd have to be mad to have any money in Greek banks at the moment. They've certainly had enough warning that trouble was coming and have been in severe financial trouble for 5 years. They all say the Cyriot bail in in 2013. Anyone who still has money saved must have their head in the sand. I can only assume that the people queued to take their money out are looking at this months salary or pension payout.
Personally I'd have been taking out every cent every month and investing it overseas or on the stock market or even just putting it under the bed, just in case. The other thing I have to say on this, is that in the Weimar republic in Germany in the 1920's, hyperinflation set in and paper money became worthless. At one point, in order to stablise the economy the banks shuts completely and when they reopened, every single bank account contained 47 deutschmarks only. All previously issued paper money was declared not legal tender and had to exchanged at a bank for new money. My father knew an old German man who had run a couple of grocery shops which he had taken over from his father. Neither of them could be bothered to count the small change in the till every night so for years and years they had tipped the spare change into empty barrels down in the cellar. They had quite a number of these barrels standing full of coins. When the banks stripped everyones' assets and reissued the banknotes, they did not reissue coins - because it's cheap to print notes but very expensive to mint coins. This old man told my father that without those coins his family would have been bankrupt and ruined and lost their stores, but because they had coinage they were able to pay their suppliers and survive the crisis while all around them lost everything. Perhaps the moral of this story is that we should hold coins not notes under our beds.
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Those who got it wrong, for whatever reason, may feel defensive and retrench into a position that doesn’t accord with the facts.
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Technophobe
Assistant Admin Joined: January 16 2014 Location: Scotland Status: Offline Points: 88450 |
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My German teacher at school had lived in Germany just before the collapse of the mark. Her father had a huge valuable town house and three daughters. He sold the house to buy three smaller ones and give one to each daughter.
Whilst he held the cash, the mark was devalued and he lost EVERYTHING! - Not a cent left! Money itself is unsafe. So, store more than one currency, other types of assets and various valuables. Be prepared to lose at least one if it all goes south, as there are no guarantees.
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How do you tell if a politician is lying?
His lips or pen are moving. |
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onefluover
Admin Group Joined: April 21 2013 Location: Death Valleyish Status: Offline Points: 20151 |
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Dodd and Frank belong in prison.
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"And then there were none."
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CRS, DrPH
Expert Level Adviser Joined: January 20 2014 Location: Arizona Status: Offline Points: 26660 |
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I invest in ammunition.
Shares of .223 look pretty good right now.
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CRS, DrPH
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Satori
Valued Member Joined: June 03 2013 Status: Offline Points: 28655 |
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China's stock market is down big time they're in panic mode and pumping 20 billion in to keep it afloat |
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cobber
Admin Group Joined: August 13 2014 Status: Offline Points: 6035 |
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Ammo is a good investment!!!
Gold is the mac daddy
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onefluover
Admin Group Joined: April 21 2013 Location: Death Valleyish Status: Offline Points: 20151 |
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Yep. Gold, silver and lead.
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"And then there were none."
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DANNYKELLEY
Admin Group Joined: May 01 2007 Location: United States Status: Offline Points: 2785 |
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I like lead myself
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WHAT TO DO????
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