Sunday, December 7, 2014

First our taxes to save the crash, our savings and pension funds

Let's suppose you have a good amount of cash in a Wells Fargo [or think of your bank] savings account. Furthermore, your pension fund is invested in bonds which WF owns in their emergency buffer account. The next financial crash occurs. The TBTF banks, now with greater risk exposure than ever, start tumbling. Heading for insolvency, bank regulators force WF to liquidate its assets and it's secured debt to raise cash. If that is insufficient the buffer securities will be sold off next. There goes a chunk of your pension fund's money. And if THAT is insufficient the regulators will go after the cash in large deposit accounts first, then, perhaps, get to yours.

The bottom line is, the government is preparing to legitimize the theft of our savings in order to prop up irresponsible and unscrupulous bankers. A far better solution, still,  is to break up the TBTF banks proactively, thus avoiding the bankruptcies and the need to save the banks on the backs of the people.”

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