The Bank Bailins Are Still on the Table

I am not the only one worried about bank bailins or, since it is a new word combo, bail-ins. Certainly my libertarian friend who blogs at Smaulgld (no, I am not a libertarian), has seen the same things I have and has seen what happened to Cyprus as well.

https://smaulgld.com/u-s-plans-to-bail-in-the-banks/

I urge people to keep only the amount of money they can afford to lose in the bank and no more.

Of course, one could say that the Fed is not above lying. And since this Smaulgold article, I haven't seen much on the subject. So bank bailouts may indeed still be on the table which could hurt the economy badly. We don't know whether to believe old Stanley Fisher or not!

“As part of this approach, the United States is preparing a proposal to require systemically important banks to issue bail-inable long-term debt that will enable insolvent banks to recapitalize themselves in resolution without calling on government funding–this cushion is known as a “gone concern” buffer.” 

Tough to trust a New World Order globalist but certainly Cyprus was an example of bail-ins gone wild. But bailouts by governments, rather than bail-ins through commandeering deposits, are still the choice until we find out more.

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