Tag: bail-ins

BANK RUNS, BAIL-INS? IT COULD BE TIME FOR YOU TO BAIL OUT!

I found the last section of the article “Are U.S. Banks About to Stress Out?” particularly interesting.

It’s not discussed in the article but I would assume that bail-ins are going to be associated with some kind of bank holiday similar to what happened in Cyprus and Greece as opposed to being a singular event. Either way I’d encourage people to maintain a stash of small denomination bills outside of the banks and credit unions. A couple of months worth of expenses in 1’s, 5’s, 10’s. Throw some twenties into the mix but sparingly as change for 20’s, 50’s and 100’s will likely be in high demand.

If you have debt, payments on that debt will still be due on time even if the banks are closed so keep a couple months worth of debt payments in the larger notes on hand as you should still be able to purchase money orders and mail them in on time as verified by the post mark on your payments.

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Let The Bail-Ins Begin

Guest Post by

Novo Bank Portugal

Portugal is starting to bail-in banks. The fascinating aspect that nobody seems to see is that this is a total failure of socialism. The U.S. Federal Reserve was formed in 1913, with the shareholders being the banks, to provide the cash needed to prevent bank failures. To stimulate the economy when the banks could not or would not lend, the Fed was supposed to buy CORPORATE notes. Then World War I came and the politicians ordered the Fed to buy government bonds. Of course, they never returned the Fed to its original purpose.

FDR-Signs-GlassSteagall

The Bankf of the United States

FDR usurped the Fed, placed it in Washington, and instituted a single national interest rate; each of the branches maintained a different interest rate to attract capital when there were shortages in one district. So it was common to see rates differ around the country based upon the local economic conditions. FDR also created the FDIC because the Fed failed to function during the Great Depression. The creation of the FDIC was sparked by bankers who were willing to let a New York bank fail in 1930 that happened to be named THE BANK OF THE UNITED STATES. Bank runs began nationwide as people assumed that this Bank of the United States was the government or Federal Reserve. The Bank of the United States was a Jewish bank and the other bankers wanted it to fail to get its business. When it was settled, the Bank of the United States eventually paid out 92 cents on the dollar.

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