‘Bail in’ of banks with depositors money appears to be going global
30th. April 2013
Further analysis from trader Jim Sinclair on the fallout from the Cyprus fklushing
The news coverage in the western hemisphere has been very selective. “What that tells me is that ‘bail-in’ is now a go, globally. There is no question that if you were to analyse the various initiatives in New Zealand, Canada, and the United States, Great Britain, etc, you would know that ‘bail-in’ is definitely being framed and will now be applied as a replacement for ‘bail-out’.
So the fact that the news of the $4.2billion which was just stolen from accounts in Cyprus didn’t make any mainstream US news, and wasn’t even mentioned on financial media during the day, tells me there is definitely a feeling that what has taken place, and what is still to take place, will disturb the ‘social order.’ Control of the news has always been predicated on what it is believed the public can take. The fact that this was totally blacked out underscores without any doubt that ‘bail-in’ is the method which will be used in any future bankruptcies in the banking sector.
The move to steal money from bank accounts, especially as the economic indicators are now turning down off of what has only been a sideways recovery, indicates to me that as the economy continues to worsen, the real condition of the underlying balance sheets of financial institutions will be exposed. At that point there will be significant needs for funds in order to maintain the integrity of the Western world’s financial institutions. So once again, readers around the world need to understand that ‘bail-in’ is definitely coming.
Thanks to Jim Sinclair for this information.