Now Canada draws up plans for a Cyprus-like "bail in"

[dixiegrrrrl]

That is what they are calling it now..a bank "bail-in" where any bank failure is to be rescued by depositors,
and not by "taxpayers", they say it as if that is a better thing.
New Zealand is also contemplating a "bail in".

to wit:

"Now Canada intends to put the same system in place. Buried on page 144 and 145 of their latest budget document is the following ditty:

The Government proposes to implement a ―bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.

Systemically important banks will continue to be subject to existing risk management requirements, including enhanced supervision and recovery and resolution plans.

But note that there is no recompense when that "enhanced supervision" fails.
When you deposit funds into a bank the cash the bank now has is an asset. The deposit is a liability."

http://market-ticker.org/akcs-www?post=219243

The Canadian Budget Document referred to can be found here:
http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf#page=154

The document is similar in scope and intent to the joint paper by the U.S. Federal Deposit Insurance Corporation and the Bank of England dated Dec. 10, 2012
http://www.fdic.gov/about/srac/2012/gsifi.pdf

Which I posted about yesterday
http://www.democraticunderground.com/10022580104#post10

So, Cyprus has done it, New Zealand and Spain are actively talking about it, Canada has the procedure in its current financial paper, and England and USA jointly have written essentially the same directive.

[BeHereNow]

1. TPTB are in the midst of staging a global grab.

I'm really happy to see you posting this information.
Too many people have no idea what the future holds.
My advisor sent out information about this weeks ago and I have
been figuring out how to convert more cash into hard assets
ever since- it's important to stay off the radar when making the necessary moves
to protect our assets.

BHN

[snot]

2. K&R'd.

This should be scaring the bejeezus out of us.

[dixiegrrrrl]

3. Or at least getting people's attention to take care of what they need to.

Once the rule of law starts being violated, there is no end to the slippery slope.

[snot]

5. I'm open to suggestions!

[dixiegrrrrl]

6. Well, search the internet for news about Cyprus banks closed

There are lots of stories of what is happening to the average citizen.

Now, Cyprus not only closed the banking for 2 weeks, it also is rationing people's money.
So what do you, as a store owner, to pay a huge bill for supplies, when you can only get your hands on 1/5th the amount you need every month, via the bank?
Do you close?
Do you start to ration your supplies to sell?
Are you pretty damn happy to see customers who come in with tens and 20's to buy, so you can make change with the money they give you
( our local Dollar Store LOVES it when I buy with rolls of coins, it means they do not have to make a bank run for change.)
Remember that many normal businesses had above the insured amount in the banks, because that was their roll over money to buy supplies and pay bills for the business. Normally the amount would stay in the banks for a few days, then be sent off to various suppliers, or for paychecks to employees, etc.
Now it is gone, and any amount under 250,000 is rationed.

So, you got a mortgage payment coming up?
But the bank is closed for 2 weeks or more.
Will that make your payment late?
Or are you paid a month ahead because you had the foresight to have a "no pre-payment penalty" written into your mortgage contract??
Yep, there are actually mortgage collectors who will ding you for paying a month ahead..stories abound on the internet.

So the banks are closed and you need gas, because the car tank is not kept full.
Is the service station open?
Has it run out of gas because every other person in town had the same idea at the same time?
(In hurricane country, you learn these things)
How long before the service station owner needs to buy a tanker of more gas and can he pay for it with the bank closed, or bank rationing his money?

A lot of what you can do involves planning ahead, thinking about "what if".
Do you have enough cash on hand to last you a month, minimum?

Act as if.......

[BeHereNow]

4. You would think...

Hell yeah, it scares the bejeezus out of me for SURE.
I'm getting ready to make some SERIOUS financial moves.

BHN

[Agony]

7. we need public banking

never hurts to dream...
http://publicbankinginstitute.org/public-banking.htm

[dixiegrrrrl]

8. Interesting concept....

Thanks for mentioning it.