A Tipping Point In The Financial System?

- A Tipping Point In The Financial System?!
by Deviant Investor, http://www.deviantinvestor.com/
March and April 2013 may go down in history as the tipping point for the western financial system.
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We have already seen:
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– Lehman Brothers and many other financial firms collapse.
– $700 Billion in TARP funds arranged by banking insiders for banking insiders at the expense of US taxpayers.
– Over $16 Trillion in bailouts, guarantees, swaps, and loans created by the Fed and given to various banks, nations, and other insiders.
– MFGlobal took “segregated” customer funds, the exchange provided no compensation to customers, and yet no criminal indictments have been issued.
– Global derivatives total $700 Trillion to well over $1,000 Trillion, depending on who is counting. Some are “toxic waste.”
– Many European bailouts and “fixes.”
– Spain, Italy, Slovenia, and perhaps France in trouble.
– US official debt approaching $17 Trillion with unfunded liabilities many times larger.
– The Federal Reserve creating $85 Billion per month (over $115,000,000 per hour) to support banks and the US government.
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So what other disasters could occur? In a word, Cyprus!
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– Not because the EU and Cyprus took Russian money.
– Not because several banks will close.
– Not because some deposits will be confiscated and/or frozen.
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In my opinion, the sign that a tipping point has occurred in the financial system is the real story:
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– The veil of banker honesty has been lifted. The EU/IMF/ECB will do whatever is necessary to support the banks, even if it means they will confiscate (tax, steal, bail-in) customer deposits.
– Customer deposits are NOT assets held in the bank for safe-keeping, but are liabilities of the bank and are not guaranteed to be made whole.
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read more!
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