Wow. Just wow.
Canada Discusses Forced Depositor Bail-In Procedures for “Too Big To Fail” Banks in 2013 Budget
Now, this is just a proposal, but, the fact that they’re even discussing this is extremely unfortunate and very worrisome.
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.
The key to any banking success is the belief that your money is safe in the banks. Especially now. If the money isn’t safe, and apparently it isn’t, and if there is little or no return on the capital, and interest rates paid to savings accounts are next to nothing, then there’s no reason to put your capital in a bank. None.
Keep it in your mattress or safe. At least there you can defend your money with a gun or something. Or as was stated in Whittle’s latest offering, if you’re European you can defend it with a harsh and sternly written objection.
If they’re going to codify this possibility in Canada, they will do this anywhere. Don’t pretend that just because you don’t live there that this can’t happen in your country. It can and it will.
h/t Mish via Lat
of course it will…
Talked to the in-laws in Paris this morning…
…they are bailing out
Said their friends are too, it’s too late when they close the banks
Me too as far as the cash is concerned. Bank jog. I read that tragic story of the Australian-Cypriot who got his life savings of a million EUR wiped out. Had it sitting in a Laiki bank account and was living of the interest. But imagine, a million in cash. It would make me queasy after a few seconds and I would think “diversify diversify” all day long…
Exactly……. at least move it into ten different banks.
sister in law…in Biarritz…is bailing too
Ugh. Well, maybe at least my timing is working out. NYC just deemed me ‘worthy’ to own a rifle or shotgun, so soon my home will become well defended. So maybe it will also become my bank.
read down to a part about interest…….
http://www.reuters.com/article/2013/03/29/us-cyprus-parliament-idUSBRE92G03I20130329
The important part is that they will get none of the money above 100k out.
The interest will be a pittance; the shares in the bank will be worthless in no time; “repaid when the bank does well” is a complicated way of saying “never”.
just in case you missed it…..
http://www.myfoxny.com/story/21827822/500-stranded-on-drifting-ice-floes
wait just one minute here…..they’ve been saying that springs are getting earlier and warmer….and that makes birds and animals breed sooner…..then colder, later springs should make animals breed later
..obviously, Russian rabbits didn’t get the memo
http://www.spiegel.de/international/zeitgeist/hares-and-rabbits-are-freezing-to-death-this-easter-a-891673.html
They have no clue as to what’s happening. Maybe this is a blessing. These idiots are destroying the facade of omni-knowledge of scientists.
He he. Spring is a fixed point in the orbital cycle. The only thing that changes is what part of the sky is visible at that time. Winter-like and Spring-like weather is very variable in the ‘temperate’ parts of the Northern Hemisphere (less so for the Southern because that part of the world is more water and less land). ‘Winter’ storms occur in the summer (for Canada and similar latitudes) because a winter storm is tilted and associated with a cold core upper air low pressure system that flows in the jet streams (polar year round, sub-tropical too from September/October to May/June).
In the summer in the southern US, the Hadley cell down-welling moves far enough northward, along with the inter-tropical convergence zone, such that the jet streams move far enough northward that baroclinic systems (a.k.a winter storms even if the precipitation isn’t icy and the air isn’t cold) don’t reach us any more. At that point we get air-mass thundershowers and/or tropical systems.