Forget Bail-Outs… During the Next Financial Crisis, Banks Are Going to Take Money Straight Out of Your Checking and Savings Accounts… Here’s How…
You remember 2008, right?
The last time big banks got into trouble, they turned to the government for help. The government gave them billion-dollar bail-outs at the expense of taxpayers (you and me).
Of course, nobody wants that to happen again, so banks have come up with a new plan.
One problem: the new plan is actually MUCH WORSE than their old plan. In fact, it could trigger bank runs and a complete economic meltdown in a matter of a couple weeks. Here’s why…
On November 16th of last year, the G20 met with little fanfare in Brisbane, Australia to adopt new banking rules. Since that day, the money you deposit in a bank is no longer considered an actual “deposit.” It is now a “debt” that the bank owes you.
These Word Games Will Have Devastating Consequences…
You see, banks are playing word games that have LEGAL implications. So when you deposit money in a bank, you are no longer a depositor… you are a creditor of the bank.
Now if a bank runs into financial trouble, it can freeze your accounts and take some or all of your money – and there’s nothing you can do about it because you’re a “creditor.”
And you’ll simply be added to the long list of creditors who will have to use tedious legal processes to try to get their money back.
The FDIC Won’t Be Able to Save You from this Financial Train Wreck
Forget about FDIC insurance. They have only $25 Billion to cover about $3 Trillion in cash deposits. In other words, the FDIC has only $1 for every $120 deposited in a bank – not nearly enough to deal with any kind of financial crisis.
I know this all sounds a little bit crazy.
But don’t forget a scenario just like this already happened in Cyprus in early 2013. All bank accounts and ATMs were frozen for two weeks. Bank customers couldn’t touch their money.
Ultimately, many depositors lost more than 40% of their deposits when the Bank of Cyprus was shut down.
They have never gotten their money back – and they never will. It’s long gone.
Why Were These New Banking Rules Passed Now Instead of Later?
I promise you, the G20 nations did not adopt these new banking rules for some financial crisis far in the future. They know banks are on the brink once again and that these rules were needed to protect the banks – you know the ones that are “systemically important.”
The only question now is:
When is the next financial crisis going to happen? Because when it hits, the money in your bank account could vanish like mist on a hot summer day – never to be seen again.
Don’t let that happen.
Some are predicting the next financial crisis will happen this year: 2015. So you may not have much time left.
Last Thing: The last financial crisis in 2008 happened as oil prices crashed. Today, oil prices are crashing again. You might not have much time left.