are you ready for the bank bail-ins? (school, retirement, money)
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A bail out is when a bank gets money from a source like the government to keep it from going under. Of course that money comes from us, the taxpayers. But in Cyprus there was a bail-in which is when the government takes money from the depositors. That's what all the rioting on Cyprus was about. But now Poland is doing the bail-in thing in addition to cutting retirement pensions nationwide by 50%. The bank simply grabs peoples money in the bail-in. There is talk of bail-ins happening everywhere including the U.S.
A real "bail in" would be to take the banks money, not the depositors.
What?? And deprive all of those hard-working execs of their 9-figure golden parachutes? Then what are they supposed to do? Enroll their kids in PUBLIC schools???
Being talked about in the Fed for when they start weaning Wall Street off the $80 billion a month.
From our perspective though it would take the form of a "deposit fee" from the banks for letting them hold our money.
The net effect though would be a negative interest rate because the fee per month would be higher than the interest earned per month.
Fed told the banks they may cut the 0.25% they give the banks to 0%.
Banks came back and said if they did that then they would have to charge customers ending in a negative rate.
No one knows what effect that would have on Americans though. Would they shrug it off or start withdrawing money.
$1 in the bank turns into $.95 in a month where $1 at home is still $1 in a month.
They just don't know and that is what is holding them back.
It's all there in the Fed minutes.
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