In our last story, we noted how government backed loans in the housing market encourages rising home and rent prices throughout the nation, a transfer of wealth from almost every single American to various establishment organizations. Now we have another example of banks transferring risk to the taxpayer.
The term “Too Big To Fail” should have the addendum NEVER EVER added to it, because, as we have seen with Cyprus, the establishment will do anything to ensure the banks do not fail and prevent the world from plunging into some kind of Mad Max hellscape. To this end, we know the government has claimed the authority to seize bank accounts, and indeed all other forms of private property should it be deemed necessary by whoever, but now we’re getting some specifics thanks to a recent FDIC report called “Resolving Globally Active, Systemically Important, Financial Institutions.”
In this report, they lay out plans to seize private bank accounts (including insured deposits under $250,000) Cyprus style in the event the bank is about to go under and previous methods of bailing them out are unpalatable by congress weary to approve TARP II: Revenge of the Banksters. Read More