Note: I experienced something akin to this personally. As Steve Jerry and Case Levin were looting TimeWarner, they forced executives to take an incomplete payment in stock options. 10 million worth. When commodity goes underwater, the value doesn’t gradually decrease; it disappears. Day 10 million is worth zero dollars in a single. Another taxpayer bailout is not going to happen.

So who will bailout the best banks that are still taking undesirable (and unregulated) dangers in garbage like derivatives that, as we’ve mentioned before, Congress seems prepared to further deregulate (thanks a lot Annie Kuster and Jim Himes)? An FDIC confiscation of debris to recapitalize the banks is far not the same as a simple tax on taxpayers to pay federal government expenses.

The government’s personal debt is at least probably the people’s debts, because the government is there to provide services for the folks. But when the banks get into trouble using their derivative schemes, they are not serving depositors, who aren’t obtaining a cut of the profits. Taking depositor funds is simply theft. What should be done is to raise FDIC insurance premiums and make the banks pay to keep their depositors whole, but premiums are already high;, and the FDIC, like other government regulatory agencies, is subject to regulatory capture. Deposit insurance has failed and so gets the private banking system that has depended onto it for the trust that makes banking work.

The Cyprus haircut on depositors was called a “wealth tax” and was written off by commentators as “deserved,” because a lot of the money in Cypriot accounts belongs to foreign oligarchs, taxes dodgers and money launderers. But if that template is applied in America, it will be a tax on the poor and middle income.

  • Market Neutral, Distribution Yield (TTM): 1.54%
  • Measure the expense of the deal
  • Interest rate for PPF is not set and subject to change every quarter from FY 2016 – 2017
  • If an buyer must choose between buying either portfolio X or portfolio Y, then
  • For investment purposes

Wealthy Americans don’t keep most of their profit bank accounts. It is held by them in the currency markets, in real estate, in over-the-counter derivatives, in gold, and silver, etc. Are you safe, then, if your cash is in gold and silver? Apparently not– if it’s stored in a safety deposit box in the bank. Homeland Security has reportedly told banks it has the power to seize the material of basic safety deposit boxes without a warrant when it’s a matter of “country-wide security,” which a major bank or investment company problems without doubt will be.

The situation hasn’t obtained any better since the TARP bailout; it’s obtained worse, much worse. If an organization is too big to fail, it is big to can be found too. No single lender should be so large that its failure would cause catastrophic risk to millions of American jobs or even to our nation’s financial wellbeing.