Bank Bail-Ins Pose Risks To Depositors, Investors & Economies
Bank bail-ins pose risks to retail investors and especially savers throughout the western world. The new bail-in rules have been made operational since the beginning of this year in the EU and in many other countries yet the risks and ramifications of bail ins have been largely ignored in most of the media.
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
Destroying our ability to discover the real cost of assets, credit and risk has not just crippled the markets--it's crippled the entire economy.
Is anyone else fed up with the Federal Reserve? To paraphrase Irving Fisher's famous quote about the stock market just before it crashed in 1929, we've reached a permanently high plateau of Fed mismanagement, Fed worship and Fed failure.
Something has changed according to Jeff Gundlach. After claiming that a rate hike is "inconceivable" as recently as a month ago, a stance which he softened somewhat in recent days, Gundlach said that the Fed has changed the conditions required for a potential interest-rate hike this year.
Cited by Bloomberg, Gundlach believes that the Fed's thinking has shifted from, 'if the data pattern improves we will have the green light to hike,' to 'unless the data pattern weakens we have the green light to hike.'"
Over a decade ago, the US cracked down on Marth Stewart as an example of all that is wrong with the US financial system. The same US which did not put any bankers in prison after the financial crisis. We now get a repeat. The United States Attorney for the Southern District of New York Preet Bharara announces charges against William “Billy” Walters and Thomas Davis, the former Chairman of the Board of Directors of Dean Foods Company, for insider trading.
Meanwhile, the real criminals, the real central banks, the HFTs, all continue to rig and manipulate markets day after day...
With the Fed’s Lacker intimating there could be as many as four rate hikes this year, the already floundering small-business-economy could see an increase in SBA loan rates.
Why?
The U.S. Government sets a maximum interest rate for all of the loans it backs. That maximum rate is composed of a base rate + a variable rate, which is negotiated between funding institutions and the businesses, and generally sits between 5.75% and 8.25%, depending on loan term and amount.