Articles NewsFlow Gold & Silver Prices Market Briefing

Recevez notre Marketbriefing

overtheedge
Member since May 2012
680 commentaries - 6 followers

6 followers

has posted a comment on the article :

Bondholders “Bailed In” In Austria – EU Bondholders Today, U.S. Depositors Tomorrow? - Mark O'Byrne - gold.ie

"“Bail-in is now the rule” as Irish finance Minister Michael Noonan warned in June 2013. Noonan admitted that the move to not maintain deposits as sacrosanct was a “revolutionary move.”

The one thing we learn from history is that we learn nothing from history.
In the USA, after the Banking Act of 1933, deposits suddenly were insured (in 1934 - $2500, today - $250,000 for a 100X increase).
Prior to that, depositors were wise to use due diligence when choosing a bank.
Banks failed and were shuttered.
Deposits gone.
So "revolutionary"?
No, the correct term is "reversion to the mean".

It will soon become obvious that the term, "counter-party risk" is just a euphemism for "predictable collateral damage".
So what risk premium are you receiving on your deposits?
Really? Let your conscience be your guide.
Sometimes the better part of valor is pay strict attention to "What's in your wallet" and NOT what's in you portfolio.
After all, Cyprus was not to be an isolated incident. Bail-ins are be the standard mechanism for saving(?) banks from themselves.

Commented 3334 days ago

Send

Beginning of the headline :- Auditors find €7.6 billion hole in Austria’s “bad bank”, Heta Asset Resolution AG- Austria’s government says it will not give Heta “a single euro”- Emergency legislation passed last month means bondholders to be bailed in- Risk of contagion high as other banks may hold Heta bonds- “Bail-in is now the rule” – EU Finance Minister Noonan- Austrian bondholders today … international depositors tomorrow …There are signs that the debt induced banking-crisis which rocked the global economy in 2008 – o... Read More

Reply to this comment

You must be logged in to comment an article

8000 characters max.

	RSS feed		24hGold Mobile
	Gold Data Center		Gold & Silver Converter
	Gold coins on eBay		Silver coins on eBay
	Technical Analysis		Fundamental Analysis