How Bank Levies Improve Financial Stability

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Despite what the markets are indicating, top economists unanimously agree that Trump is decimating the fundamentals of the US economy, by tearing up important trade deals like the TPP, threatening thousands of undocumented workers with deportation and drafting the most irresponsible tax plan in history. As Trump continues to undo Obama’s economic progress, many think that another financial crisis may be looming over the horizon, and that new measures may be needed to protect our financial institutions in this event.

In 2013, Cyprus was forced to restructure its banking sector, after some extreme financial turbulence caused by speculators. After negotiating the terms for a bailout from the EU and IMF, world leaders agreed that depositors with more than 100,000 Euros should be forced to take a modest ‘haircut’ of 47.5% of their deposits, to be invested in bank shares. The success of this bail-in caught the eye of monetary officials around the world, and many economists now recommend bank deposit levies as a highly effective measure to mitigate financial crises. 

After the 2007-08 financial crisis, many bank shares that looked like they were on the verge of bankruptcy, showed double and triple digit returns in subsequent years. If depositors had been forced to invest a portion of their deposits in these bank shares, many of them would have become rich. Studies have also shown that when depositors are forced to underwrite the shares of their bank, the entire financial system is more stable and willing to make loans to small businesses.

Everyone recognizes that fiscal and monetary stimulus is essential for long term economic growth. Now it’s time for us to recognize the similar benefits of bank levies, and start implementing a comprehensive set of policies forcing depositors to take a haircut in the event of a financial crisis. Depositors may not be thrilled about this policy, but the reality is that everyone will benefit as a result. Bank levies are just simple economics. 

Pbier

Outstanding wisdom, MDB. The People is too big to fail and needs to be invested in banks for its own good.

hungrypirana
hungrypirana

That’s right: announce this policy, then watch the run on banks. Thankfully Trump knows better than acting on this nonsense. #winning

drb6
drb6

Runs on the banks will be prohibited by law.

I also think that all deposits that are in banks should be declared the property of the respective bank. After all, most banks are doing God’s work and everyone should chip in to help them!

Anon
Anon

Here is the thinking of someone who hasn’t a penny to his name

ROTFLMAO!!!!!!

#fake-news

FULL BLACK
FULL BLACK

That’s still the beauty of America – Free Speech. Red means you made the libs mad, but your words are still there. What a country!

Anon
Anon

Actually all money deposited in a bank is NOW the banks money. Laws were changed making any deposit into a bank account a loan to the bank.

Your (allegorically speaking as YOU probably don’t have enough money to open a bank account) deposit is now legally a loan, so the money is NOW the property of the banks.

Seems you are behind the times and pushing for something that has long come to pass. Sorta like running to the bathroom in order to take a dump, after you soiled your pants.

#fakenews

drb6
drb6

Loan is not property yet…it is a step forward, but we need to do more to help bankers in their difficult work.

Make my votes count
Make my votes count

MDB Technically what you propose is already taking place here in the USA but in more of a stealth mode. There was a time when Companies offered retirement benefits to their employees. They took dollars and gave it to banks to invest and those would be paid back to employees via a pension. Employees were guaranteed a retirement benefit. Most government employees still have this promise.

Now most private companies will match a percentage of what an employee is willing to gamble in the stock market via 401k/403b’s. Those investment options are often limited by the bank the company selects and fee’s are paid by the employee. This account is what employees may have to draw from at their retirement. All risk is now assumed by the employee.

Some would like to do the same with SS benefits. How can we lose?

Anon
Anon

Wall Street bansters are the #1 contributor to corruption in the Swamp

I support Impalement for banksters.

expat logger
expat logger

Your right to be jealous of bankers because they got all the money and printers to print as much as we need. But impalement is against my pacifist principles so I support a bloodless coup to confiscate the special printers and return them to “We the People”.

Anon
Anon

I suppose a bloodless coup with the judicious use of strangulation can work. There’s also drowning. That’s also bloodless.

but as a fan of the arts, I feel that pictures and/or films of 10,000 Impaled banksters would send an impactfull message for many ages to come.

Strangulation is lacking in that respect, and a lake full of dead bodies would just lower the water quality.

expat logger
expat logger

In my neck of the woods, the tradition is lamp posts!

Anon
Anon

HMMMM!!

Is that a bankster impaled on top of every lamp post or dangling from it.

Can we compromise and alternate lamp post usage? I have no problem starting with having a dangling bankster followed by one getting impaled.

BETTER YET! DUAL USE LAMP POSTS. We can have a dangling banker and an impaled one on every lamp post.

I wholeheartedly support this environmentally safe and economical usage of lamp posts.

Anon
Anon

In other news Turkey’s President Endrogen threatens Europe with ‘religious war” after his officials tried to address Turks in Europe during rallies and were either booted out, or not allowed into Europe in the first place.

Endrogen has made it illegal to hold rallies in Turkey itself, so he can’t address Turks holding rallies in Turkey (snicker) and needs to go to Europe to address his subjects!

https://www.rt.com/news/380970-europe-religion-wars-turkey/

Turkey’s Foreign Minister Mevlut Cavusoglu has warned that Europe is headed for “wars of religion,”

Meanwhile Spain snags 10,000 military weapons slated to be sold on the black market to “you know who”

https://sputniknews.com/europe/201703161051627389-spain-seizes-weapons-black-market/

While Greece has so far seized TWO ships (the Kukui Boy and the Haddad 1) with containers full of undocumented weapons which were also going to end up in the hands of “you know who”.

Nobody knows how much large scale smuggling is going on, but small scale smugglers like these 3 Britons (of Iraqi birth – another snicker! ) were caught trying to smuggle over 20 rifles and 200,000 round of ammo.

https://www.theguardian.com/world/2016/feb/14/greece-high-alert-britons-arrested-arms-trafficking

carbon trader
carbon trader

This article is incomplete. Those with hair will get a 47.5% haircut of their deposits. If you are bald, 47.5% of your scalp will be removed, to support our financial system.

I know this since we have been trading carbon for generations. Shylock, the Jew, is our inspiration. Our forefathers traded lively, wholesome forms of carbon, the slaves to work in plantations. Then we had indentured coolies from Asian countries for sugar and rubber plantations. Lost heavily during WW2, since Hitler failed to deliver on his promise of providing 6 million lampshades and soap. But we have made it all up with global warming.
Gotta go now, have to pull chunks of carbon from the progressive elites for trading. Real heavy demand for carbon these days.

Anon
Anon

In a purely Muslim way of dealing with infidelity a village counsel imprisons a man for infidelity, and then sells off … I mean marries off his 3 year old daughter to settle a demand for $10,000 compensation.

I think Pakistani Muslims are after the 3 year old precedent of by Jews. The Great MO’s example was to wait till the girl was 9 before doing the nasty.

The wife gets no mention in the story and was probably stoned to death.

http://www.independent.co.uk/news/world/asia/father-three-year-old-daughter-married-off-pakistan-neelum-valley-azad-jammu-kasmir-dispute-affair-a7631801.html

Snowflake killa
Snowflake killa

Roflmmfao. Does mdb have a job? House? That’s the stupidest argument yet for wealth redistribution. You don’t even try to sell it any more. Trumps got jobs in the way, and the biscuit wheels are about to fall off the gravy train. You better be prepared. The word food today is J..O..B….

Snowflake killa
Snowflake killa

If I throw my change in the ground outside Popeyes to watch the bums(progressives) right for it, does that make me slightly accredited? Just wondering.

FULL BLACK
FULL BLACK

This article would make sense “IF” the Federal Reserve ( which is about as federal as Federal Express ) never existed. The US dollar has lost 97% of it’s buying power since the Federal Reserve came onto the scene in 1913.

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