A Very Frightening Fact
Let’s keep this simple…when you deposit your money in a bank, by law, you become an unsecured creditor. If the bank goes bust, you are insured to a certain amount in the USA and the UK.
However, if too many banks fail all at once, the FDIC can not cover everything. In a banking collapse, you lose. This is how depositors in Cyprus got hammered not long ago. If nothing is done to rein in derivative trading, we will all be “Cyprused”.
(Perhaps it is time to explore the concept of publicly owned banks.)
This video explains the legal principle supporting such theft quite well:
- Theft is Legal for Big Banks- and Your Money Will Never Be Safe (alternet.org)
- Bail-out Is Out, Bail-in Is In: Time for Some Publicly-Owned Banks (thepeoplesvoice.org)
- Learn about FDIC Insurance Limits (ally.com)
- No BaNK DePoSiTS WiLL Be SPaReD FRoM CoNFiSCaTioN (zerohedge.com)
- Bank Confiscation Scheme for US and UK Depositors (ritholtz.com)