Fed Vice Chairman Warns: Your Bank May Seize Your Money to Recapitalize Itself

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At the height of the financial crisis in 2008 the U.S. government forced some of the countries largest banks to take “bailout” funds amounting to billions of dollars in order to keep them from going bankrupt. It was a move designed to not only keep too-big-to-fail financial institutions afloat, but one that would inspire confidence and keep American consumers spending. As a result, the last several years have seen stock markets reach record highs with Americans continuing to rack up personal debt for real estate, vehicles, education, and consumer goods as if the financial crisis never happened.

But the purported recovery may not be everything that government officials and influential financial leaders have made it out to be.

Recent comments delivered by Federal Reserve Vice Chairman Stanley Fischer suggest that not only are global and domestic economies still struggling, but the U.S. government itself is preparing financial contingency plans in anticipation of another widespread economic event.

However, this time around, according to Fischer, the government won’t be bailing out financial institutions in need of cash. Instead, failing banks will turn directly to their unsecured creditors when they need money. And within this context, that means you.

(Read the rest of the story here…)

1 thought on “Fed Vice Chairman Warns: Your Bank May Seize Your Money to Recapitalize Itself”

  1. I suggest that you gradually pull your money out of the banking system. It will gain attention if you do it all at once. Might even be illegal.
    I owe, I owe, to the bank I go. Most normal people have bank loans on automobiles and real estate. That means that if the bank goes broke, they still collect the money each month. But if the money is in the bank(as Hueston found out in the late 80s) they can foreclose on you even if you have money in the bank. Your money is not available to you so they steal what you have. That is why minimizing your money in the bank makes sense. Of course the money will be returned to you by the Fed in about the same time it takes to produce a baby(9 months). It might only take 6 months. Not sure how that works.
    I suggest that the billionaires know all ready exactly what will happen and when it will happen and are betting against the U.S. Dollar big time for when it occurs. Never mind that the Securities Exchange will be marching in to put people in jail for that knowledge. I think there are rules against someone knowing that information in advance. I am not a financial expert. They could make a good claim that it is all ready public knowledge.
    When you are near to broke on paper anyway, it really only matters if they close your access to what little money you have. So each month when your pensions and income come in, simply put it into a safe place and take what you budget each week from that account. Envelope systems do work and work well. They are not dependent so much on banks and you really have no accounting to do on the money because it is self-accounting by how much is left. I keep enough in a checking account to pay monthly bills. I do this with a credit union rather than a bank. I think the larger credit unions may survive the entire system going down.
    It also gives you a very realistic view on how much money you have left to spend.
    Unless the currency itself collapses, then your pensions are worthless. So is the income everyone makes by working for a living as they do not give raises anymore.
    You might see them attempt to put 12-15 dollar minimum wages out there. That only screws everyone on a pension. So everyone is forced to go back to work to make ends meet. Your entire welfare group will also be screwed big time by such an act.
    Pensions are generally stable but dependent on the currency having value. For instance between 1970 to about 1982, we had massive inflation and pensions did not keep up with it. COLA was an attempt by Social Security to maintain pensions. It is really a joke under the current administration. They would have to double the pensions to keep up with what they have stolen over the last 6 years.
    The only groups that have ever made out in this situation are Congress people with their raises, lawyers, service groups of professionals like plumbers, Heating & Air Conditioning repair, Bankers, civil servants of the governments, and a very minority group of union people.
    All of which is dependent on what the market will handle. If it is such that the majority of people have no disposable income, then the above civilian groups get messed over with the rest of us.
    Corporations take the biggest hit when there is no disposable income available.
    That is exactly what has happened in the last few years with the advent of Obamacare. Disposable income of all common wage earning people and pensioners have disappeared. So they quit spending money they do not have, mainly because they max out all their credit availability.
    The credit system of education is also coming into disrepute because it cannot be payed back with the current wage system in place. There is a glass ceiling out there for anyone without a college degree. This is government sponsored. But that too is falling apart rapidly because people cannot pay back the loans they have signed up for to get that education.
    When the common person out there is bankrupt technically by loans they cannot pay back but do not have the bankruptcy option, then you have a system that is going to collapse no matter what you do.
    When people default on their homes, their automobiles, and everything else and that becomes a majority of people then the government itself is not too far off from going bankrupt. The government is trillions of dollars in debt with no sign of being able to pay it back.
    That, in my opinion is what is going to cause the entire system to come down like a house of cards. When that happens we will see the true ugly nature of the entire professional parasite system of lawyers and bankers come to a head.
    Let us all hope that I am wrong.

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