Ottawa weighing plans for bank failures - Prepare To Be Cypressed
- Thread starter Big Sleazy
- Start date
I was thinking about this a little further, since I'm unconvinced of the federal government's article clarifying the budget clause:
http://ca.finance.yahoo.com/blogs/b...e-bail-language-federal-budget-195829237.html
Is there anything I can personally do to avert/minimize this expropriation of funds (should it come to pass)? Also, what assets would they go after? Would it be deposits only or would it encompass RSP/other registered accounts, Canadian brokerage accounts, etc.? I think it's always best to prepare for the worst...
http://ca.finance.yahoo.com/blogs/b...e-bail-language-federal-budget-195829237.html
Is there anything I can personally do to avert/minimize this expropriation of funds (should it come to pass)? Also, what assets would they go after? Would it be deposits only or would it encompass RSP/other registered accounts, Canadian brokerage accounts, etc.? I think it's always best to prepare for the worst...
Just diversify your $$ and you'll be fine unless you are super rich.. when I think about it I have bank accounts with with at least 6 banks/brokers, within TD alone I have 9 accounts. But I guess the question is, does CDIC cover 100K per account or per institution? Frankly I would not rule out that Canadian banks could get into trouble.
Thanks for your response nottyboi. Diversification can mean other assets like land, a business, gold/precious metals, etc., so there are some options available. As for your CDIC query, I interpreted the deposit insurance to cover 100K per account so long as it meets the following:Just diversify your $$ and you'll be fine unless you are super rich.. when I think about it I have bank accounts with with at least 6 banks/brokers, within TD alone I have 9 accounts. But I guess the question is, does CDIC cover 100K per account or per institution? Frankly I would not rule out that Canadian banks could get into trouble.
Your savings are eligible for deposit insurance...
If your bank (or the institution you bank with) is a member of CDIC.
We only insure savings if they are at one of our member institutions.
and…
If the accounts or financial products you have are covered by CDIC.
We only insure certain types of savings in Canadian currency.
More details at http://www.cdic.ca/Pages/default.aspx
I looked into this further and what I found out scares the hell out of me. When everybody opened up a savings/checking account at your Bank, did anybody bother to read the fine print ?
I thought not... who does.
To keep it simple. When you signed on the bottom line you gave the Bank the legal right to utilize your funds any way they see fit. And they are not obligated to make you whole on your deposits. So if your Bank decides they want to take a gamble and buy up Greek Government Bonds and they go south... tough luck for you. Yes there is deposit insurance. But why would a Bank require insurance unless they were out in the market making risky bets with your deposits in the first place ?
I know a guy down in the States is is quite wealthy and when the 2008 collapse occurred, he was made whole by FDIC. But FDIC didn't have enough money to cover all of the deposits. So they went to Congress and had the Treasury print ( or make an electronic entry on a computer ) money to cover the deposits. This may sound fine but think about it for a moment. When you increase the money supply you cause inflation. So instead of stealing the Bank deposits they inflate the currency. So everyone pays more for the goods and services such as food and gas.
My advise is to keep a minimum amount of cash in your account to cover the basics. Either a monthly or quarterly amount to cover off every day needs. Don't keep more money in an account that you are not prepared to lose.
If you are fortunate enough to have some money. Buy something tangible. Farm land, Gold, Silver. If you purchase the precious metals do NOT buy an ETF. An ETF is nothing more than a piece of paper. Just like your deposits could disappear, so can your paper claim on your precious metals. Buy the physical and either store it somewhere safe. Or utilize a vaulting service.
BS
I thought not... who does.
To keep it simple. When you signed on the bottom line you gave the Bank the legal right to utilize your funds any way they see fit. And they are not obligated to make you whole on your deposits. So if your Bank decides they want to take a gamble and buy up Greek Government Bonds and they go south... tough luck for you. Yes there is deposit insurance. But why would a Bank require insurance unless they were out in the market making risky bets with your deposits in the first place ?
I know a guy down in the States is is quite wealthy and when the 2008 collapse occurred, he was made whole by FDIC. But FDIC didn't have enough money to cover all of the deposits. So they went to Congress and had the Treasury print ( or make an electronic entry on a computer ) money to cover the deposits. This may sound fine but think about it for a moment. When you increase the money supply you cause inflation. So instead of stealing the Bank deposits they inflate the currency. So everyone pays more for the goods and services such as food and gas.
My advise is to keep a minimum amount of cash in your account to cover the basics. Either a monthly or quarterly amount to cover off every day needs. Don't keep more money in an account that you are not prepared to lose.
If you are fortunate enough to have some money. Buy something tangible. Farm land, Gold, Silver. If you purchase the precious metals do NOT buy an ETF. An ETF is nothing more than a piece of paper. Just like your deposits could disappear, so can your paper claim on your precious metals. Buy the physical and either store it somewhere safe. Or utilize a vaulting service.
BS
The amount the treasury printed does not come remotely close to the amount that was destroyed in the financial crisis. This is why inflation has so far been relatively muted.I looked into this further and what I found out scares the hell out of me. When everybody opened up a savings/checking account at your Bank, did anybody bother to read the fine print ?
I thought not... who does.
To keep it simple. When you signed on the bottom line you gave the Bank the legal right to utilize your funds any way they see fit. And they are not obligated to make you whole on your deposits. So if your Bank decides they want to take a gamble and buy up Greek Government Bonds and they go south... tough luck for you. Yes there is deposit insurance. But why would a Bank require insurance unless they were out in the market making risky bets with your deposits in the first place ?
I know a guy down in the States is is quite wealthy and when the 2008 collapse occurred, he was made whole by FDIC. But FDIC didn't have enough money to cover all of the deposits. So they went to Congress and had the Treasury print ( or make an electronic entry on a computer ) money to cover the deposits. This may sound fine but think about it for a moment. When you increase the money supply you cause inflation. So instead of stealing the Bank deposits they inflate the currency. So everyone pays more for the goods and services such as food and gas.
My advise is to keep a minimum amount of cash in your account to cover the basics. Either a monthly or quarterly amount to cover off every day needs. Don't keep more money in an account that you are not prepared to lose.
If you are fortunate enough to have some money. Buy something tangible. Farm land, Gold, Silver. If you purchase the precious metals do NOT buy an ETF. An ETF is nothing more than a piece of paper. Just like your deposits could disappear, so can your paper claim on your precious metals. Buy the physical and either store it somewhere safe. Or utilize a vaulting service.
BS
Inflation ahs been muted if you believe what is reported on the mainstream media. The real inflation rate is running between 8% - 10 %. Not the 2% that is reported. Just look at what it costs you to fill up your tank. Check out the size of the packaging on products that you buy. They're shrinking. What about insurance ? Yup... that's up to.
The Government has to index all of the governmental employees pensions to inflation. If the real inflation rate was reported our debt and interest payments would skyrocket overnight.
As an example. The CPI one month would classify beef as filet. But the cost goes up so they measure the cost of ground chuck and classify it as beef.
BS
The Government has to index all of the governmental employees pensions to inflation. If the real inflation rate was reported our debt and interest payments would skyrocket overnight.
As an example. The CPI one month would classify beef as filet. But the cost goes up so they measure the cost of ground chuck and classify it as beef.
BS
REAL Capitalists Move Our Money from Big Banks to Credit Unions
Conservative free market entrepreneurial capitalist Karl Denninger
If you have an account at a BANK, go move it to a CREDIT UNION.
You know, a place that you own and is a mutual association of people?
Yes. One that you own. Where the fees assessed go to provide services to.... you, not to feather the nests of bank executives and stockholders.
http://www.zerohedge.com/contributed/real-capitalists-move-our-money-big-banks-credit-unions
Conservative free market entrepreneurial capitalist Karl Denninger
If you have an account at a BANK, go move it to a CREDIT UNION.
You know, a place that you own and is a mutual association of people?
Yes. One that you own. Where the fees assessed go to provide services to.... you, not to feather the nests of bank executives and stockholders.
http://www.zerohedge.com/contributed/real-capitalists-move-our-money-big-banks-credit-unions
Sigh. Canada is not Cyprus. The media knows that fear sells, and that the muppets in the general public will buy into it. Pretty laughable and ridiculous, really. The top rated comments on these news websites are typical populist garbage.
Logically, you could reduce your exposure to real estate and commodities, diversify net worth into things like ETFs, have US and international financial assets, have balance between growth assets and safe fixed income.
Most people won’t do any of it, which is why we have wealth concentrating at the top among people who do. Meanwhile, average people continue to rack up record household debt, listen to the internet doomers who advocate owning Bitcoins, hard metals or some other ridiculously volatile "asset", and get worked up over non-events like this RBC story.
Logically, you could reduce your exposure to real estate and commodities, diversify net worth into things like ETFs, have US and international financial assets, have balance between growth assets and safe fixed income.
Most people won’t do any of it, which is why we have wealth concentrating at the top among people who do. Meanwhile, average people continue to rack up record household debt, listen to the internet doomers who advocate owning Bitcoins, hard metals or some other ridiculously volatile "asset", and get worked up over non-events like this RBC story.
Gas has been in the same ballpark for at least 2-3 years, housing is a bit more.. but on the whole I don't see a ton of inflation out there.Inflation ahs been muted if you believe what is reported on the mainstream media. The real inflation rate is running between 8% - 10 %. Not the 2% that is reported. Just look at what it costs you to fill up your tank. Check out the size of the packaging on products that you buy. They're shrinking. What about insurance ? Yup... that's up to.
The Government has to index all of the governmental employees pensions to inflation. If the real inflation rate was reported our debt and interest payments would skyrocket overnight.
As an example. The CPI one month would classify beef as filet. But the cost goes up so they measure the cost of ground chuck and classify it as beef.
BS
