Swiss economist: Glass-Steagall or Bail-In
The Unhived Mind
Swiss economist: Glass-Steagall or Bail-In
June 18, 2014 • 12:42PM
http://larouchepac.com/node/31083
“Five years are gone since the last financial crisis and economic fundamentals have worsened. The current lull must not be a ground for rejoicing but for worrying.
Swiss economist Alfonso Tuor warned of a coming financial collapse and of a bail-in conspiracy in an article published in ticinonews.ch on June 11.
“A new financial crisis is imminent”, says the headline. Subtitle: “Its course will be different: the financial system will be saved by looting citizens’ savings”.
Tuor lists the elements that point to a new coming crisis: low rates, high assets prices etc. He quotes UBS economist Goerge Magnus, who compared the current “calm” on the markets to the lull that preceded the 2007 crisis, and Jacques Attali’s article of May 26 in L’Express.
“Depositors and all citizens should know that the next crisis will have a much different course than the one of 2008. Then, central banks and governments intervened to save the financial system. Today, instead, depositors will be called to pay. This (little known) course has been approved both by European and Swiss authorities. It is called ‘bail-in’. In substance, the experiment in Cyprus during the last crisis will be repeated, when bank failures have been paid by bondholders, shareholders and through an enormous ‘haircut’ of deposits over 100 thousand francs or euro. Practically, there will be a looting of savings in order to avoid bank failures and a restructuring of government debts through a further haircut of savings. The world rushes towards this goal, which will throw the European economy and probably the American economy in a deflation similar to the Thirties of the last century. Everything seems to indicate that this is the port where the Mario Draghis, the Matteo Renzis and the Angela Merkels are saling to.
http://theunhivedmind.com/wordpress3/2014/06/19/swiss-economist-glass-steagall-or-bail-in/