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dena

The mold is made, the die is cast.

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If /when the banks collapse, the account holders will take the hit.

Cyprus is the model that will be used... those account holders get a 40% haircut just to keep the bank afloat.

The real kicker is, and pay attention here, that the foreign branches of the collapsed banks were open for business as usual.

So, if you were fortunate to be paying attention, and were overseas, you could move your money before the levy was assessed.

The local Cypriotians got hosed if they were unaware, or unable to go out of country.

 

Spain, Greece Italy and other European account holders should pay attention to the Cypriot model.

 

 

 

 

Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced

 

From the Telegraph.

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How quickly we forget that in the "bad ol days" of yesteryear, when a bank was robbed real money was stolen and it was stolen from those who gave their money to the bank to invest.

 

Investing has risks. Our government, by insuring accounts, has tried to make that risk small, but now we see the risk is real. You gave your money to the bank? Then they have it to do what they think is best (supposedly to make you a ROI).

 

But the ugly truth (other than the ugly truth that investing has risks) is that if the government is making the guarantee, they can also cease making that guarantee at any moment. They can even go engines full reverse and become the risk.

 

Caveat emptor. Caveat voter (oops! too late, fooled again).

 

I put my savings into hard assets. I have new property and a new garage. Let the government come take 40% of my garage.

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The only true hard assets are lead, and brass.

With those, at least you can put up a fight.

 

And small gold coins

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