Since I live Down Under, I will be looking at alternatives that are relevent to us here - and of course to other places as well. But a little background first.
In this time of instant communication and gratification, we are not isolated from the impending global economic carnage. It is even possible that our way-over-the-top property market might be a domino tumbler.
However, it really isn't much of an issue as to what the trigger event will be - the results will be what matter.
Remember last time in 2008 banks were bailed out?
A universally unpopular move with the public.
So, guess what the banksters and officialdom have up their sleeves for the GFC2?? A bail-in. Know what that is?
That's where the banks take depositors funds.....like in Cyprus in 2008.
I read an article recently by an Australian journalist describing bail-ins, who kept referring to "Bondholders" - what a clever way of managing to report without spelling anything out. Many people reading his article would say "oh, I don't have any bonds, so it doesn't apply to me".
Make no mistake - as a depositor in a bank you are an UNSECURED creditor of that institution. When they go under, you are low man on the totem pole for restitution.
Want to know a wonderful irony? The very people who helped create our current financial nightmares are the very ones who will have a "Preferred Creditor" status and will be paid out first!!! It's in the bail-in rules.
Is your blood boiling yet??
Many countries have already adopted the bail-in strategy in Law -even the Kiwis ....Australia very soon to follow. But even if it is not in Law - there are historical precedents here - even recently!! A couple of months ago the Federal Govt seized inactive bank accounts where there was no activity for 3 years.....by what right?? How did they even imagine that they had a claim to that fund of nearly $400 Million ??? So where's the hue and cry about that??
And let's not forget the Pyramid Building Society collapse. Greedy depositors were bailed out by a levy imposed on all Victorian Electricity accounts. So people who couldn't afford to invest bailed-out those who chose poorly with their investments.....
What a crazy system...... time for better......
A dear friend once told me that you can only patch a leaky water tank so many times - better to go and invest in a new one. Buckminster Fuller said much the same when he stated that you don't try to change the system - rather start a new, better one and make the old one obsolete.
Which is the Higher Porpoise of this blog (have to keep my sense of humour somehow!!).
Next time I will give more detail on how things could happen here....and yes, there IS hope. But it will be a very different playing field to what we see now - so we all need to bite that bullet that's labelled "Change".
The very thing we don't like much.....and need to go flowly with.....
In this time of instant communication and gratification, we are not isolated from the impending global economic carnage. It is even possible that our way-over-the-top property market might be a domino tumbler.
However, it really isn't much of an issue as to what the trigger event will be - the results will be what matter.
Remember last time in 2008 banks were bailed out?
A universally unpopular move with the public.
So, guess what the banksters and officialdom have up their sleeves for the GFC2?? A bail-in. Know what that is?
That's where the banks take depositors funds.....like in Cyprus in 2008.
I read an article recently by an Australian journalist describing bail-ins, who kept referring to "Bondholders" - what a clever way of managing to report without spelling anything out. Many people reading his article would say "oh, I don't have any bonds, so it doesn't apply to me".
Make no mistake - as a depositor in a bank you are an UNSECURED creditor of that institution. When they go under, you are low man on the totem pole for restitution.
Want to know a wonderful irony? The very people who helped create our current financial nightmares are the very ones who will have a "Preferred Creditor" status and will be paid out first!!! It's in the bail-in rules.
Is your blood boiling yet??
Many countries have already adopted the bail-in strategy in Law -even the Kiwis ....Australia very soon to follow. But even if it is not in Law - there are historical precedents here - even recently!! A couple of months ago the Federal Govt seized inactive bank accounts where there was no activity for 3 years.....by what right?? How did they even imagine that they had a claim to that fund of nearly $400 Million ??? So where's the hue and cry about that??
And let's not forget the Pyramid Building Society collapse. Greedy depositors were bailed out by a levy imposed on all Victorian Electricity accounts. So people who couldn't afford to invest bailed-out those who chose poorly with their investments.....
What a crazy system...... time for better......
A dear friend once told me that you can only patch a leaky water tank so many times - better to go and invest in a new one. Buckminster Fuller said much the same when he stated that you don't try to change the system - rather start a new, better one and make the old one obsolete.
Which is the Higher Porpoise of this blog (have to keep my sense of humour somehow!!).
Next time I will give more detail on how things could happen here....and yes, there IS hope. But it will be a very different playing field to what we see now - so we all need to bite that bullet that's labelled "Change".
The very thing we don't like much.....and need to go flowly with.....
No comments:
Post a Comment