Tag Archives: Bailout

Breaking up with the banking system…

It seems that more and more people, either online or IRL are breaking up with the banking system. They’ve had enough with being treated like slaves.
Take a look at the following links and ask yourself if you can live without a bank account or a tether to the banking system:
https://christianbattlefront.wordpress.com/2013/03/15/my-wife-and-i-are-going-to-divorce/

http://poorrichards-blog.blogspot.com/2013/03/unbanking-vs-underbanking-how-to-break.html


Take note Americans

The latest news from Cyprus is that they have decided on a 40% tax on any saver in Bank of Cyprus who holds more than €100,000. This is on top of the €100 limit on ATMs so any other saver has a difficult time getting to his money.
The ATM limit was imposed to try to prevent a bank run, but the latest actions seem antithetical to that idea.
In any case, the savers are losing their money. It is being taken from them in front of their eyes. This brazen theft speaks of the fragility of the banking system. All Americans should take note and decide where they want their money. In a bank protected by nothing, or in their safe protected by Smith & Wesson.
This theft isn’t as far away as you’d think, nor is it unprecedented here in the United States. Our economy is losing traction by the day and it is only a matter of time before it all implodes.
GET.YOUR.MONEY.OUT.OF.BANKS.NOW!

The lines at the ATMs and low grumblings have turned into something larger as banks and ATMs get bombed. This could easily happen here in the United States. How prepared are you? What would you do if this happened here?
How long could you care for your family?


The economic rumblings are getting much louder…

I won’t sit here writing this, and pretend that I understand all of what is happening in Cyprus. I don’t understand what is happening with the Euro, or the global economy. I am certain the details and minutia would boggle my mind. I can’t seem to wrap my head around how this crisis slipped up on us unaware.
I realize a personal economy and banking is vastly different than central banking, but I just don’t get how this happened so suddenly.
How is it that an internet full of chicken little blog posts saw this coming and the investors and bankers didn’t? That doesn’t make much sense to me at all.
The only thing I do understand about this is that the governments borrowed their way into massive debt,  or the private banks made very risky loans, and now the citizens have to suffer.
Last week, there was talk of looting whatever money was left in the citizens’ bank accounts by a tax of as much as 70% of savings, but was eventually overturned. Ultimatums are now being put on Cyprus to accept the conditions of a bailout or face a national, governmental bankruptcy.
As the citizens became more and more aware that any money they had that was in the banks could be subject to seizure or worse, they began to line up at the ATMs to get what they could before it was all gone. To avoid a run, banks instituted limits on cash withdrawals.
Other citizens, angry at even a thought of confiscation of their hard earned money, began to riot in the streets. This is all well and good I suppose, but their infrastructure is crumbling due to this financial mess. Very soon, they will face a situation much like Greece did, shortages abounding.

What most Americans are waking up to is the fact that these incidents are not isolated pockets of misfortune half way across the globe. They are the tremors of a large quake that is about to hit the global economy. The framework for a confiscation, or collapse protection is already being setup here in the U.S. These events could very well be seen in history as the beginning of a very large, sustained, and painful correction.
Hold on to your seats everyone, this may get a little bumpy…


Great Overview Of The Banking Crisis In Cyprus

Right after I finshed my last blog post, I ran across this article which is very troubling. I highly recommend taking the time to read the article. The author explains the details and puts the pieces together very well. It is worth your time, especially if you have any money in the bank. Here is a quick exerpt:

Cyprus lawmakers may have rejected the bank account tax, but the truth is that the financial crisis in Cyprus is just getting started.  Right now, the two largest banks in Cyprus are dangerously close to a meltdown.  If they fail, depositors could end up losing virtually all of their money.  You see, the banking system of Cyprus absolutely dwarfs the GDP of that small island nation.  Cyprus is known all over the world as a major offshore tax haven, and wealthy Russians and wealthy Europeans have been pouring massive amounts of money into the banking system over the last several decades.  Yes, those bank deposits are supposed to be insured, but the truth is that there is no way that the government of Cyprus could ever come up with enough money to cover the massive losses that we are potentially looking at.  This is a case where the banking system of a nation has gotten so large that the national government is absolutely powerless to stop a collapse from happening.  If those banks fail, depositors may end up getting 50 percent of their money or they may end up getting nothing.  We just don’t know how bad the damage is yet.  And considering the fact that many of the largest corporations and many of the wealthiest individuals in Europe have huge mountains of cash stashed in Cyprus, the fallout from a banking collapse could potentially be absolutely catastrophic.

I am very worried. This global economy is very fragile right now, and it could be disastrous if the looting of people’s money continues. On top of this, we are at the precipice of world war 3. I sincerely hope that we can get out of this without too much pain, but that is unlikely at this point.


Hard Times Generation: US Families Living In Cars In Record Numbers

This is ridiculous! There is no way we should be spending any money on foreign aid to any country if we have this going on!
Our infrastructure keeps crumbling, yet we keep writing checks to foreign countries, and bailing out banks, and cutting taxes on the rich! 
The rich get richer while the poor get poorer…
Why.is.this.happening?!
Hard Times Generation: US Families Living In Cars In Record Numbers


How close are we to another Great Depression?

How close are we to another Great Depression?

The author of this article hits the nail on the head. Good stuff to keep in mind when hearing the “official” unemployment rates and the people affected.

1929 All over again?

We all know by now that our economy is on the decline, and the the dollar’s purchasing power has fallen; it is clear that we are past the point of “recession” and either on the edge of or just beyond the edge of a depression. 
There have been reports of our economy plummeting in November of this year, and now there is more ammo for that gun. Many investors, and financial analysts claiming that China’s economy will tank this year due to their own real estate bubble.
Cornerstone Wealth Management CEO David Hefty predicts that the Dow will drop to 5000 this year after China’s economy goes tits up.

“You can’t build cities for millions of people and have them half full – there’s problems with that, and not only are they going to be facing this real estate crash themselves but they’re facing inflation, so they’re going to have to slow their economy down in the midst of a real estate crash, and I didn’t even mention Europe,” said Hefty.

Business Week has been keeping an eye on the Chinese markets:



China’s Shanghai Composite Index may drop as much as 6 percent after breaching the 250-day moving average for the first time in a year, Shenyin & Wanguo Securities Co. said.
The benchmark gauge plunged 4.8 percent to 2,980.3 yesterday, the most in eight months, on concern government measures to curb real estate speculation will slow economic growth. The index may extend losses until reaching the next support level of 2,803…

Bloomburg notes this about the Chinese economy:



In China, where property prices rose at a record pace in April and consumer prices climbed at the fastest rate in 18 months, the economy faces the risk of a “significant slowdown,” Roubini said.
“China should be tightening monetary policy, increasing interest rates and let its currency appreciate over time,” he said. “They are too slow, they are not doing it fast enough.”

Perhaps all of the fuss I’ve heard about our economy being flushed in November is due to China’s real estate bubble bursting and rippling throughout the globe leading us to another Great(er) Depression.


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