Cypress got bailed out but many depositors are taking a bath in the process. One obvious lesson is that in senarios that may cause a run banks will and can close down really fast.

For many other depositors that have the 100k insurance gaurantee I wonder where the government will find the money to cover them. Since the second largest bank in their country is now closed forever. More foreign deposits from out of the country are now going to be history I imagine as well.

I suspect the majority if not all depositors where taken by suprise. It is a requirement from now on for depositors to keep a better eye on their financial institutions as what happened there may be duplicated in many other countries down the road.

Thank goodness our prudent government would never do anything like that.

They already did. They were just more polite and subtle about it -- read: Bearded Bennie's QEx.

I don't know about ANY foreign country to the United States of America, (including Canada) but I believe the FDIC in the United States of America covers any individual bank account to $250,000.00.

Licensed brokerage houses in the United States has something called, acronyn - FINRA, that I believe insures/covers brokerage accounts to $500,000.00 if I have my facts correct.

Anyone have better authority/info on whether what I wrote above about the U.S. is true or not - please correct me......

Yeah, and Congress could change the law by majority vote.

Poof.

Why bother stealing money when we can just print more? A smart counterfeiter is more subtle than a bank robber, but just as effective.

LOL

__________________
Jim

They would start tomorrow if they thought they could get away with it.

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'83 300D, 126K miles.

They (Feds) already own the only legal printing presses, that's why they're the only entity that can guarantee anything financial.

It's coming.......hopefully it will come after I get out of here......to eternity.

Inflation with no corresponding raises in earnings in the private sector is much the same type of thing in my mind. A reduction of the real worth of things we have be it money, real estate or whatever should be impacted. Actually it probably has been already.

North america had quite a run until this ideal of very heavy deficit type financial dealings by far too many governements at many levels got seriously underway.

To me it is just illogical that things can continue indefinatly as they currently are without this becoming an even more serious major issue. Yet there seems to be no real alternatives being projected.

The ideal of governments living within their means is not even getting serious lip service. There will be no let up until they just cannot borrow any more at all. Only then will the suggestion of living within the countries means arrise. Simply because there then would be no other choice.

One real additional contribution to the mess and the need to continue it currently. Is the emergence of socialisim and the use of programs to cover up perhaps fundemental planning misteaks. This makes current government borrowing exponential in nature. There really is no other option currently.

Then when you add the average amount of personal debt at citizen levels to the mix having limited future headroom. We seem to have swapped a financial system that worked and people could understand and plan around. For some horrible basically unpredictable substitute.

I for one can not get a clear picture of where things wil be in five years. In the past you could almost count on a basic simularity to today being there. Now it is getting to be anyones guess of what things will be like at that time.

Part of the redistribution of the wealth of nations was a requirement to reduce wars as most wars are based on economic factors. We seemed just not to do the adjustments required for this era properly when it was initiated and afterwards. It did get underway seriously in the early eighties.

I keep telling myself than I am not that smart as things could not eventually landup in this fashion. At least that is what I keep telling myself. Yet as spundrum states and really it cannot be argued.

The governments absolutly control the money printing presses is a factual reality. So they can manipulate things to meet their needs at everyones expense that tries to act responsable has to be a given as well.

Many north americans wonder why all the concern over the european scene. What they may be missing is that from a combined perspective the combined eurozone countries are the largest econony in the world by quite a margin. If they fall to pieces over time would impact everything we have known.

In my opinion we have needed changes that have not happened. Or even suggested they happen. So my guess is that we may have one pissed off north american population down the road. When to me is the unknown not if.

It will take that for the sobering light of reality to occur. Currently I am like the majority just floating along with what is. Aware that what we posess as a couple is going to be negatively impacted along the future path. In either our possession or our decendants possesion.

It is already to some extent but still is easily bearable. Another serious wild card is that almost everything has become exponential in nature. World population growth, need for ever increasing food production, and perhaps the thing that may impact things the most is the amount of worldwide energy production required is also steadily increasing very rapidly.

We have to get things slowed down to have any stability at all. Unfortunatly we have also enabled far too much where any serious attempt to slow down brings on very serious consequences as well. So the status quo remains until there are no other options in my opinion.

We as a couple are lucky in many ways but derive no satisfaction from the impacts that have and are occuring to far too many other people. Or very happy about what is and has been enabled for our decendants to face. It may not get us as I am seventy and the wife is sixty five but there can be little doubt it is still coming.

Snark aside, do you honestly believe that the US is in any way near the conditions of Cyprus, Greece or other distressed Euro nations? If so, how so?

By no means are we north americans anywhere near that point but I feel we are working our way towards a simular end. Things tending to be exponential in these trends currently is the danger. Once started on the path it may be hard to get off or avoid the acceleration.

Actually the majority of north americans have it pretty good in general so far. I would just feel better if we were paying our own way totally as we went along. Or living within our real means generally. I see deficits as almost total negatives the way they are being used today.

In Canada what should be our most prosperous province Alberta has a five billion shortfall this year alone. This is almost insanity but still what it is. Ontario is pretty well topped out with deficits it being another so called wealthy province.Still they will be forced to borrow even more on a year over year basis.

It's a trend, not a product.

If we continue to expand the federal debt faster than we pay it down then there is no question we are headed to the Euro-zone crashes, which are exactly debt related.

We have no choice but to pay down the debt if we want to avoid a megacatastrophe.

The next perhaps three years will perhaps tell the story. If the debt per year escallates in each one over the actual increase of the prior year may give some indication for the longer term.

For various reasons I expect at the end of the current year to see more borrowed than last year for example. Only time will let us know if that happens.

Another thing that concerns me that if there is an engineered way to conceal it from common knowledge. I only read once where there where mass funds transfered from the american central bank to the european banks in 2012. Even german ones and then the issue went quiet.

If there was a "run" on the banks in the USA, I suspect it would go "viral", and the end results would not be good since most bank probably only have about 2-3% cash on hand. I suspect the total physical currency in circulation is $685-$710 billion. I doubt the banks' capital requirement is more than 10% accross the board at the highest level. So, taking a percentage, how long would $60-$70 billion -- if that -- last if folks got scared and wanted their money NOW ! Go ask JG Wentworth