Bail In????

Oddjob said:
So, to get to the end of this, the Gov't could have of then (as try could now) limit bank withdrawals to X $ per day, stop all bank withdrawals for a period etc if they felt there would be a run on the banking system etc. so as SilverDJ's says...... spread your risk and and keep some cash and other liquid assets under the mattress....
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If there is any stacker who isn't also stacking cash outside the system, they aren't doing it right!
Given the practically zero interest you get in the bank it makes sense to keep maybe a few months worth of cash tucked away outside the banking system.
 
More on bank bail in
IMPORTANT ... As many people as possible really need to make submissions to the senate enquiry re bank seperation within the next 3 weeks.
There is a chance that this bail in could be overturned but time is of the essence.
See how to make your submission in vid below and vids above I previously posted above in this thread.

 
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long88 said:
What happened if you only got debt ? Millions of dollars of debt due to property loan..
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If a "bail in" took place, I suspect banks would then call in various loans (which ones NFI) so they could either get the cash back via repayment or if the borrower couldn't repay, seize the assets due to default and then resell for $. Just a potential outcome... maybe.
 
Oddjob said:
If a "bail in" took place, I suspect banks would then call in various loans (which ones NFI) so they could either get the cash back via repayment or if the borrower couldn't repay, seize the assets due to default and then resell for $. Just a potential outcome... maybe.
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That wouldn't be fair at all.
 
Certainly not slavaja, but the bank's have been doing it for no good reason of late. I read of where the bank's want to downside their rural risk, thus find the loans they can call in for no reason, even when the loan is being serviced and force the farmer to repay. Many can service but not repay early, thus the bank forecloses, receiver sells them up. Just Google rural loan foreclosures.
 
long88 said:
What happened if you only got debt ? Millions of dollars of debt due to property loan..
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As nobody will be able to borrow, your property price will plummet to a fraction of current values, and if it drops below the level of your debt the banks will take it. They're already doing this to farmers who have had their property in the family for generations and never missed a repayment.

So when you think about it, by using fractional banking the bank can lend you money they never had (created out of thin air) and later they can just take your property, and it cost them nothing.
 
Although it wasn't a bank, the government did offer a deposit guarantee. The collapse happened in mid 1990. Depositors only received 51 cents per dollar. It took up to 15 years to get that. So half their money 15 years later, without earning any interest. That's what you can expect with a government "guarantee".

Depositors with funds in the building society received back about 51 cents per dollar. ($614 million returned for $1.21 billion invested) The final cheques were sent in March 2005.[1]
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https://en.wikipedia.org/wiki/Pyramid_Building_Society#Depositors_returns
 
Only the deaf, blind and stupid would have money in a bank in trouble.

Hmm on second thoughts it is the vast majority of people in any given country looking at Iceland, Cyprus, Ireland, Portugal, Spain, Greece and Italy as examples in relevant times, so I guess it is the same here.
 
Oddjob said:
Certainly not slavaja, but the bank's have been doing it for no good reason of late. I read of where the bank's want to downside their rural risk, thus find the loans they can call in for no reason, even when the loan is being serviced and force the farmer to repay. Many can service but not repay early, thus the bank forecloses, receiver sells them up. Just Google rural loan foreclosures.
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there must be some reasons behind it, passing the properties at steep discount to their buddy, its big discount, to transfer that risk exposure away
there must be buyer for a seller in order for the transactions taking place
the bank need to grow their loan book to show that they are lending, here come their buddy to their rescue, in the last Asian financial crisis, a lot of banks offering free money, well if you are one of their buddy
someone's gain is another's pain, bank is nothing to blame, they are just acting as an intermediaries
 
long88 said:
What happened if you only got debt ? Millions of dollars of debt due to property loan..
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If you actually have net millions of dollars in debt, then you either weren't very smart, or made a very big investment gamble that might not pay off. Either way, it's all on you. There is no rule that said property can't fall in value. In fact history has shown time and time again that is not the case.
 
It amazes me how people talk of inflation as if it is a real thing when it is just another part of the scam ... things might change if people spent more time educating others the banking system is a fraud rather than going along with it repeating it and promoting it ...
 
SilverDJ said:
If you actually have net millions of dollars in debt, then you either weren't very smart, or made a very big investment gamble that might not pay off. Either way, it's all on you. There is no rule that said property can't fall in value. In fact history has shown time and time again that is not the case.
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If you have net millions in debt but have the proceeds of the venture quarantined elsewhere, then you are very smart when it all comes asunder.
 
sammysilver said:
If you have net millions in debt but have the proceeds of the venture quarantined elsewhere, then you are very smart when it all comes asunder.
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No decent size corporate entity who has large / decent cash deposits keeps their monies with the bank's that provide their funding. Thus they can avoid set-off in the event of a loan default. Which leads to the question, does "bail in" only apply to retail depositors like us, or does it cover corporate entities. Imagine the stink if the Gov't allowed the bank to snaffle up corporate funds too.
 
Oddjob said:
No decent size corporate entity who has large / decent cash deposits keeps their monies with the bank's that provide their funding. Thus they can avoid set-off in the event of a loan default.
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I had a foreign cheque clear instantly a while back when it should have had a 30day hold on it. Turned out the cheque had expired by that point and they wanted the money back, but I had already emptied the account. They had to ask my permission to take the money from another account with the same bank, as they said they did not have the authority to just take the money from the other account, even though it was under the same company name.
But yeah, smart to have the cash at a different bank, that at least makes it harder for them. Perhaps even a foreign bank operating here, as they may be potentially less "in cahoots".
 
sammysilver said:
If you have net millions in debt but have the proceeds of the venture quarantined elsewhere, then you are very smart when it all comes asunder.
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But in the case of property as being discussed here, the bank has the deed and has the property as collateral which they can take back and sell.
 
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