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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: zamboz who wrote (99713)	4/3/2013 12:33:51 PM
From: Maurice Winn	2 Recommendations Read Replies (2) \| Respond to of 219609

Alan Green$pan couldn't imagine it either but he was shocked to find that bank shareholders were so careless of their own money that they allowed their employees to pay themselves huge bonuses for running the banks into the ground, along with unsecured creditors, including some of the bailout funds: <I find it hard to imagine any politician or political party allowing banking deposit confiscations to happen on their watch. And I cannot imagine any bank wanting it to happen as no confidence = no deposits. > As has been pointed out, the deposits are not confiscated, they are simply misinvested and lost. For example, a million depositors put a $billion into a bank coz they find it pays good interest rates and has a popular sports player fronting the advertizing. The bank's managers have heard about CO2 and how "Green" investing is the way to go so they lend half the money to Solyndra, which is such safe that even Barack Obama tossed in some taxpayers' funds too. Obamamotors is doing a great job too so they lend the other half to Tesla which makes the new age electric car which is really sporty looking. Obamamotors and Solyndra buy lots of machinery, factories and pay lots of dinkum scientists and engineers to make this Green Goo work. The public put a lot of money in too, buying shares in the Green Goo at the IPO to do good and make money at the same time, like Al Gore. The highways were paved with Green Goo, OPM, and Good Intentions, with Teslas zipping along and photovoltaics sending electrons flying along wires to supply electricity hither and yon. Things were going pretty well but there were not very many customers for some reason for all the Green Goo. Solyndra was going to pay the money back, with interest, from all the profits, but Made in China photovoltaics were really cheap. Tesla wasn't selling many cars so they couldn't pay the money back either or even make interest payments. Some of the bank managers told their friends to move their money out of the bank while the moving was good because there looked to be a bit of a fiscal failure on the books. Next thing you know, there's no more money to pay out. No depositors are bringing more money. Ooops. The banks close, the government and "bank regulators" and everyone start trying to figure out what to do. There is no $billion to confiscate. The money has gone. First the money went to Solyndra, then to the employees who paid income tax and other taxes [about half the money they were paid], they bought petrol for their cars, bought coffee and went to the local restaurant. The car dealer, cafe and restaurant paid their employees and made some profit, all of which was taxed so half those payments went to the government. By now there was only quarter of the money left. The car dealer, barista and chef went to the supermarket and Wal-Mart and got some groceries and some Made in China shoes and clothes. The Wal-Mart money got taxed and a lot of it went to China. Do you think the people in China who got it are going to give it back to the depositors at the bank in Cyprus? Is the government pension fund in Stockton going to give it back to the depositors at the Cypriot banks? Stockton is bankrupt. They aren't going to give money back to anyone. The depositors at the Cypriot banks are not much different from the depositors at the banks in downtown Stockton. They are in trouble. The politicians are bust. There is no more opm to dole out to their friends, cronies and electorate supporters. There is no confiscation of depositors' funds. That money has flown the coop and was eaten by foxes lurking in the woods. The farmer was promising that the hens would lay golden eggs but the photos of all those lovely hens were from the IPO brochures and there are no hens to confiscate, no golden eggs lying around waiting to be given to depositors. The hen house is empty. The hen house itself is mortgaged too, with rent owing on it. The money didn't cease to exist. It's somewhere in China and spread around all over the place with people buying things with it and lending it to other people and doing what money does which is end up in some kleptocrat's pocket. To keep Stockton going, the USA government will produce another $trillion and lend it to Stockton on easy terms. People who are holding US$ will find they can't buy as much with their money as they had hoped. People realize the US$ is starting to look like the Cypriot banks, with not much backing it other than Solyndra, Tesla and Green Goo promises. The Federal Reserve Hen House looks solid but it's really just a pile of rocks with nothing in it. No hens, no golden eggs. People start buying gold and shares and pretty much anything that might hold some value. Money in the Federal Reserve Bank starts to look a bit Cypriot. People buy NZ$ and Oz$ and put their money in those banks because they look safe. Wells Fargo might be judged "safe" but J P Morgan might not. Money could move in a giant wave from dodgy banks to safe banks. Cyprus banks were not much of a news story in NZ. Not many people know what "The Cyprus Model" is. Mqurice