Bank Holiday coming?

Changing the laws for easier looting





Banks fail

Banks fail.

Typically, when a bank fails the depositors stand to lose all their deposits. This was fixed in the US by better banking regulation and the FDIC.

But please be aware that financial regulation is now for all practical purposes NON-EXISTENT if you are a major bank.

The FDIC is an insurance company. Insurance companies can fail too. In fact, the FDIC could easily find itself swamped with just a few big bank failures.

Then what?

Theoretically, Congress would appropriate more funds to cover the shortfall.

But what if the failure is systemic and swamps the ability of the Treasury to cover the losses?

In that case, we go back to the way it has been since the beginning of time: when the bank fails, the depositors eat it.

New dollars? New Euros? I don't think so, but that's always possible.

A bank holiday is when the government
closes public access to bank funds in order
to deal with an "emergency."

It happened in the US as recently as the
1930s and has happened in countries
all over the world.

Strangely, as we approach the financial
wall, the US government seems to be trying
its hardest to provoke a war with Iran,
including a recent cyber attack.

Let's see...unmanageable financial crisis,
a "shooting" cyberwar...a banking system
dependent on electronic deposits...and bankers
and government officials so corrupt and
power mad as to defy belief.

Video:

Banking malfeasance Bank Holiday coming?

Ken McCarthy
Real Econ TV