Words from Sinclair
KUCH
Posts: 1,186
History indicates that loans will be reset to equal the depreciation in the dollar thereby leaving the debt at a similar value to what is was before the hyperinflation during the "Great Leveling," leading to the "Great Reset." The idea is that you will pay off your $50,000 mortgage with one maple leaf is historically fallacious.
This economic trick has the same chance of working as does your deposits of $250,000 in ten banks, and your expectation of being repaid by the FDIC $2,500,000 in a banking systemic failure. You will not be.
This economic trick has the same chance of working as does your deposits of $250,000 in ten banks, and your expectation of being repaid by the FDIC $2,500,000 in a banking systemic failure. You will not be.
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Based on what we've seen so far, I have no doubts that they will continue to protect the bankers with no consideration for people who work for a living. Play smart.
I knew it would happen.
The thought of this happening makes me sick. Even if your mortgage is 100% paid before a "reset", they'll just jack up property taxes for those homeowners.
<< <i>History indicates that loans will be reset to equal the depreciation in the dollar thereby leaving the debt at a similar value to what is was before the hyperinflation during the "Great Leveling," leading to the "Great Reset." The idea is that you will pay off your $50,000 mortgage with one maple leaf is historically fallacious.
This economic trick has the same chance of working as does your deposits of $250,000 in ten banks, and your expectation of being repaid by the FDIC $2,500,000 in a banking systemic failure. You will not be.
So, will savings accounts, CD's, etc also be reset? If not, another good reason not to hold paper assets.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
In the 2008 financial
crisis every insured deposit was covered. You also saw the extreme steps
the Treasury and Fed took to minimize the effects of the crisis.
<< <i>The FDIC has never failed to repay an insured deposit.
In the 2008 financial
crisis every insured deposit was covered. You also saw the extreme steps
the Treasury and Fed took to minimize the effects of the crisis. >>
The Treasury and the FED clearly prevented FDIC failure in 2008 by preventing bank failure. Think they would get away with doing it again? I don't.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
In the future more banks will fail, but banking will always survive.
If there is another financial crisis expect gold to fall considerably, just as it did in 2008. This is when you buy, not wishing/praying, for an event in the future. One could have bought silver in 2008 at the same levels as years earlier. History will repeat.
Knowledge is the enemy of fear
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Homeowners who dutifully paid their mortgages and taxes subsidized underwater homeowners and corrupt bureaucrats. Bankers who mismanaged their lending programs and unscrupulously took advantage of unsophisticated buyers were bailed out, and were then paid wonderfully high bonuses with taxpayer money.
"We had to suspend free market capitalism, in order to save it" was the biggest financial lie of the century. The only crisis was in how many bankers might have been held accountable if they hadn't been bailed out.
I knew it would happen.
Somewhat more interesting when you consider the same number of banks, twenty two, failed from 2001 to the beginning of the banking crisis fallout in 2007
The National Bank of El Paso TX
The Community's Bank Bridgeport CT
Sunrise Bank of Arizona Phoenix AZ
Community South Bank Parsons TN
Bank of Wausau Wausau WI
First Community Bank of Southwest Florida
Mountain National Bank Sevierville TN
1st Commerce Bank North Las Vegas NV
Banks of Wisconsin d/b/a Bank of Kenosha Kenosha WI
Central Arizona Bank Scottsdale AZ
Sunrise Bank Valdosta GA
Pisgah Community Bank Asheville NC
Douglas County Bank Douglasville GA
Parkway Bank Lenoir NC
Chipola Community Bank Marianna FL
Heritage Bank of North Florida Orange Park FL
First Federal Bank Lexington KY
Gold Canyon Bank Gold Canyon AZ
Frontier Bank LaGrange GA
Covenant Bank Chicago IL
1st Regents Bank Andover MN
Westside Community Bank University Place WA
fdic failed bank list
JC
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<< <i>22 smaller sized banks have failed so far just this year.
Somewhat more interesting when you consider the same number of banks, twenty two, failed from 2001 to the beginning of the banking crisis fallout in 2007
The National Bank of El Paso TX
The Community's Bank Bridgeport CT
Sunrise Bank of Arizona Phoenix AZ
Community South Bank Parsons TN
Bank of Wausau Wausau WI
First Community Bank of Southwest Florida
Mountain National Bank Sevierville TN
1st Commerce Bank North Las Vegas NV
Banks of Wisconsin d/b/a Bank of Kenosha Kenosha WI
Central Arizona Bank Scottsdale AZ
Sunrise Bank Valdosta GA
Pisgah Community Bank Asheville NC
Douglas County Bank Douglasville GA
Parkway Bank Lenoir NC
Chipola Community Bank Marianna FL
Heritage Bank of North Florida Orange Park FL
First Federal Bank Lexington KY
Gold Canyon Bank Gold Canyon AZ
Frontier Bank LaGrange GA
Covenant Bank Chicago IL
1st Regents Bank Andover MN
Westside Community Bank University Place WA
fdic failed bank list
JC >>
Johnny, you werent here when we had a weekly poll on the number of banks that would fail. It usually averaged about 4-6 per week and many predicted the end of the banking system then. Four year later, we're all four years older.
Knowledge is the enemy of fear
<< <i>22 smaller sized banks have failed so far just this year.
Somewhat more interesting when you consider the same number of banks, twenty two, failed from 2001 to the beginning of the banking crisis fallout in 2007
The National Bank of El Paso TX
The Community's Bank Bridgeport CT
Sunrise Bank of Arizona Phoenix AZ
Community South Bank Parsons TN
Bank of Wausau Wausau WI
First Community Bank of Southwest Florida
Mountain National Bank Sevierville TN
1st Commerce Bank North Las Vegas NV
Banks of Wisconsin d/b/a Bank of Kenosha Kenosha WI
Central Arizona Bank Scottsdale AZ
Sunrise Bank Valdosta GA
Pisgah Community Bank Asheville NC
Douglas County Bank Douglasville GA
Parkway Bank Lenoir NC
Chipola Community Bank Marianna FL
Heritage Bank of North Florida Orange Park FL
First Federal Bank Lexington KY
Gold Canyon Bank Gold Canyon AZ
Frontier Bank LaGrange GA
Covenant Bank Chicago IL
1st Regents Bank Andover MN
Westside Community Bank University Place WA >>
All of these failed banks were acquired by other banks and the FDIC didn't not have to payout any of the deposits. The FDIC and failed banks are two different things as long as there remains an acquiring bank or a government bailout for those not acquired by another bank. The FDIC is a marketing gimmick to convince Americans their bank deposits are "safe." Now that Cyprus has demonstrated that bank account holders are nothing short of creditors, expect a next banking crisis to see quick and deep customer withdrawals.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Johnny probably already knows that the FED handed out TRILLIONs to the big banks and thousands of the their "friends" around the world (foreign banks, corporations, charities, etc.). Without that assistance provided by the
US govt (ie taxpayer) ALL of the biggest banks would have failed taking 65% of the banking system down with them. The most important banks did indeed technically fail but J6P bailed them out without ever knowing it. Only
a stroke of a pen in some back room of the Treasury or FED prevented a complete collapse of the banking sector. It's more pure luck that we're all here 4 yrs later with the system still supported. JPM, Citi, BoA, and GS didn't
realize at the time that killing Lehman Brothers was basically killing themselves. Bailing them out of their stupidity and high risk-taking so that they could do it all over yet again from 2009-2013 borders on the absurd. The bankers
would rather flush the entire country down the drain before allowing banking to fail and lose their bonuses.
Really?
Knowledge is the enemy of fear
<< <i>Cyprus=USA?
Really? >>
Bank account holders are creditors to that bank regardless of where that bank is located. Cyprus opened our eyes (those capable of having them opened) to this fact. See if your optometrist can provide some help.
By law, when you put your money into a deposit account, your money becomes the property of the bank. If the bank goes belly up you get it line with everyone else who loaned the bank money. Since, by law, the FDIC is required "to keep a balance equivalent to only 1.15 percent of insured deposits" you're best hope is that it is just a small 'belly-up." Otherwise, if you're lucky you will get pennies on the dollar. After all banks are only required to keep pennies on the dollar of what they take in deposits. "Fractional banking" will become your worst nightmare.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Its interesting that since the Cyprus "situation", PMs have lost purchasing power versus the Euro. Probably just a conspiracy to allow the Russians to convert their "losses" into cheap gold, right?
Knowledge is the enemy of fear
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Dare I say it that even the best day traders will find that their profits just don't add up the way they expected. It'll be a shock alright.
I knew it would happen.
Which brings up the other comparison you use about the sun, USA and China, which I feel is extremely purposeful and an excellent analogy for this discussion. Yes, the sun shines on both the USA and China and fortunately for this discussion both countries lie within the same latitudes so the sun shines with the same intensity on both countries. The common assumption is that since both countries share the same amount of sun, just as the US and Cyprus has banks, that each should be similar. So why does not China have the same agriculture as the USA? You correctly point out that just because two countries share something in common, they are not the same. There are many geographic differences in the USA and China, just as there are many socio-economic differences between the USA and Cyprus.
The Cypriot banks were really Russian money laundering banks. Unfortunately the common Cypriot suffered as a result of global sanctions on the Russians.
Knowledge is the enemy of fear
The TARP program was very successful and profitable for the US Government.
If necessary, the Fed or Treasury would loan money to the FDIC so that no
insured depositor suffers a loss.
No insured depositor lost a penny in a FDIC insured bank account.
<< <i>Derryb, you made the comparison to US and Cyprus banks, not I. Yes, the USA and Cyprus have banks, but that does not mean the banking systems are the same. There are hundreds, if not thousands of documents (not blogs) readily available that detail the banking and economic systems in both countries.
Which brings up the other comparison you use about the sun, USA and China, which I feel is extremely purposeful and an excellent analogy for this discussion. Yes, the sun shines on both the USA and China and fortunately for this discussion both countries lie within the same latitudes so the sun shines with the same intensity on both countries. The common assumption is that since both countries share the same amount of sun, just as the US and Cyprus has banks, that each should be similar. So why does not China have the same agriculture as the USA? You correctly point out that just because two countries share something in common, they are not the same. There are many geographic differences in the USA and China, just as there are many socio-economic differences between the USA and Cyprus.
The Cypriot banks were really Russian money laundering banks. Unfortunately the common Cypriot suffered as a result of global sanctions on the Russians. >>
Are bank depositors in reality creditors of the bank whether in Cyprus or the US? Of course they are. Depositors actually loan the bank money when they deposit money in the bank. . . and the bank loans most of it out to others. It's gone.
And in a like manner, promises are made by each government to insure the bank deposits since most of the deposits are no longer held by the bank. Their ability to do so remains to be seen. Cyprus was unable to fullfill its promise so it used the "they are bank creditors" to not honor their insured deposits promise. Will the US do the same when faced with more failure than the FDIC can cover? Since the FDIC is only required to maintain a fund that equals less than 2% of bank deposits they will have little choice as did Cyprus.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
The FDIC has an unlimited letter of credit with the US Congress. Only congressional approval would cause the FDIC to fail. You think Americans would allow that?
Knowledge is the enemy of fear
<< <i>The FDIC has an unlimited letter of credit with the US Congress. Only congressional approval would cause the FDIC to fail. You think Americans would allow that? >>
That's your argument against a Cyprus style "bail-in" when an underfunded FDIC doesn't have enough money to cover lost bank accounts?
Americans will allow whatever they are told to allow. They have thus far.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
I highly doubt there will be any Cyprus style crisis.
The USA will not self-destruct.
Knowledge is the enemy of fear
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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