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

To: carranza2 who wrote (101682)	6/28/2013 2:48:33 PM
From: Riskmgmt	Respond to of 217737

It isn't just Europe either, this is scary: "Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” Up until now when a bank failed the regulators moved in and arranged a good back to take over and no depositors lost any money. We saw this with Wacovia, Washington Mutual and many others. In 2010 alone there were 157 banks that failed en.wikipedia.org–present) yet to my knowledge there was no loss to depositors. As an aside the same was true of Brokerage accounts until recently with M F Global etc. Now however it is a whole new ball game. Money put in to a bank , whether by a business or individual, is money one doesn't want to risk and might need in the near future, otherwise it would be invested. Well now it kinda is invested and we are all investors, so one has to do dd on the bank you deposit money into as if you were evaluating buying the stock of that bank. Good luck with that, figuring out the banks derivative exposure! My guess is the EU is just the first of many, the USA and others will adopt it (already did the ground work) they have to otherwise most Europeans will just move their money out of europe. See Gold got a bounce you may have just picked the bottom, or at least a retrace of the trend. Your a brave man, or a smart one , maybe both:} R