ECB Proposes End To Deposit Protection

[mr-dead]

The ECB is now proposing an end to the £85k bank deposit protection.

http://www.zerohedge.com/news/2017-11-19/ecb-proposes-end-deposit-protection

Pair this with the push to a cashless society and it doesn't take genius to see it wont end well.

Ive had the mindset for some time now that the more wealth you can keep outside the banking system the better.

 

 

[sixgun]

Yet another signal that the bankers are going to collapse the paper system and use this as an excuse to steal everyone's currency. Keep just enough cash in the bank and no more. 

A strong signal that many paper assets will be toast.

[Pete]

Haha   ... suddenly Brexit doesn't seem so bad - share with the BBC ( Brussels Broadcasting Corporation ) .... 

[JunkBond]

I was wondering why my bank (HSBC) recently announced they were ring fencing the uk part of their operation.  Is this linked?

[sixgun]

@JunkBond the banks are being forced to separate their High Street banking operations from their investment [financial market casino] operations.

[JunkBond]

Very interesting @sixgun , by whom and to what end?

[sixgun]

2 minutes ago, JunkBond said:

Very interesting @sixgun , by whom and to what end?

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11932810/Britains-biggest-banks-to-be-forced-to-separate-retail-banks-from-investment-arms.html

[JunkBond]

2 minutes ago, sixgun said:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11932810/Britains-biggest-banks-to-be-forced-to-separate-retail-banks-from-investment-arms.html

Thanks @sixgun, sounds like preparations for financial market armageddon!

[Xander]

Does autonomy not make them more accountable? 

[stackspot]

54 minutes ago, sixgun said:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11932810/Britains-biggest-banks-to-be-forced-to-separate-retail-banks-from-investment-arms.html

Isn't that the same as Glass Steagall Legislation which they used to have in the US and which was a good thing.

[sixgun]

3 minutes ago, stackspot said:

Isn't that the same as Glass Steagall Legislation which they used to have in the US and which was a good thing.

There were 4 sections of the US Banking Act 1933 which separated investment and commercial banking. It is generally seen as a wise thing and something the likes of Lyndon LaRouche mentions all the time.

[mr-dead]

Looks like Atkinsons have also picked up on this story and is included in todays newsletter.

[sixgun]

 

[Bumble]

The deposit protection was never really worth much anyway. It would be OK if, say, one medium sized bank failed, but if there is a system wide crash, such as nearly happened in 2008, the cost of covering all the deposits would be far more than any government could afford. For countries with their own currencies, the money could theoretically be printed into existence to cover the losses, but even then the result would just be inflation.

It is better to behave as if there is no deposit insurance and do things like splitting your money across more than one bank, using other vehicles such as building societies and credit unions, maybe holding a bank account outside the country in a safe jurisdiction, and of course holding your wealth in other things such as coins or crypto.

[Thelonerangershorse]

Eggs, Baskets.

 

[MancunianStacker]

3 hours ago, Bumble said:

The deposit protection was never really worth much anyway. It would be OK if, say, one medium sized bank failed, but if there is a system wide crash, such as nearly happened in 2008, the cost of covering all the deposits would be far more than any government could afford. For countries with their own currencies, the money could theoretically be printed into existence to cover the losses, but even then the result would just be inflation.

It is better to behave as if there is no deposit insurance and do things like splitting your money across more than one bank, using other vehicles such as building societies and credit unions, maybe holding a bank account outside the country in a safe jurisdiction, and of course holding your wealth in other things such as coins or crypto.

Exactly! We owe the public £100 Trillion, so let’s just print £100 Trillion and collapse the currency in the process. That’s he end game. Advertise deposit protection for years, remove it without telling anyone and bang! 

[Markh]

I get slammed for saying that fiat currency is a worthless pile of crap. But this is just confirming that it is. 

[Oldun]

https://protected.fscs.org.uk/About-FSCS/

[C12]

The bullish case for gold and silver is growing stronger by the day. 

Even cash under the mattress is no longer safe bet since that is becoming more and more likely it will be taken out of circulation at some point. 

https://www.worldfinance.com/banking/the-end-of-money

[Martlet]

On the other hand, UK has recently introduced new plastic £10 and before that the £5 note, promoting durability as primary reason for plastic.  I don't see much likelihood of suddenly withdrawing all cash when there's a programme of replacement underway. 

[C12]

1 hour ago, Martlet said:

On the other hand, UK has recently introduced new plastic £10 and before that the £5 note, promoting durability as primary reason for plastic.  I don't see much likelihood of suddenly withdrawing all cash when there's a programme of replacement underway. 

It's a valid point but they could follow India's crazy idea and initially pull the plug on the higher denominations (£20 and £50). 

It will be interesting to see how things develop in other countries.

[Xander]

Banks like to guarantee 10% of our deposits then create more money from the other 90%. Banks don't store our money they steal it from under our noses.

[Roy]

Oh....today's a bank holiday 

What will we wake up to tomorrow? 

Banks, bitcoin, bubbles, bail outs, busts, bankruptcy and breakfast. Bacon butties I hope! 

[C12]

I'm starting to lean toward the deflationary camp at some point in the near future, ie - a collapse of the banking system. Everything going down, including stocks, housing, cryptos, possibly even gold will be hit. I can't see these bubbles lasting any longer than another 12 - 18 months. 

People were parking their cash in NS&I savings back in 2008 which was the safest place to hold fiat.  

I remember at the peak of the crisis they locked down new account registrations, so now is probably time to apply for one.

We should have had deflation in 2001 but they've somehow managed to engineer 2 even bigger debt bubbles. The next crash will be the big one. 

[HawkHybrid]

7 minutes ago, C12 said:

I'm starting to lean toward the deflationary camp at some point in the near future, ie - a collapse of the banking system. Everything going down, including stocks, housing, cryptos, possibly even gold will be hit. I can't see these bubbles lasting any longer than another 12 - 18 months. 

People were parking their cash in NS&I savings back in 2008 which was the safest place to hold fiat.  

I remember at the peak of the crisis they locked down new account registrations, so now is probably time to apply for one.

 

depending on how you define deflation I'm not sure we'll

have deflation coming. we might have already had that.

currency does not equal money.

 

HH