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Another Nail In The Coffin — Another Swiss Banking System Capitulation

switzerSwitzerland, the land of the honest banker and honest banks, is following the path of the rest of the world by allowing “bail-ins.” Bail-ins, for those who may still now know, are what was demanded in Cyprus in order to get an ECB bailout. Bail-ins are the confiscation of all or part of bank deposits held by private individuals and corporations in a troubled bank (or banking system).

When the Swiss resort to such chicanery and theft, it is a likely sign that the financial system is irreparable. Governments seem to be recognizing that their prior efforts have not worked and cannot work and that another, bigger crisis lies ahead.

The laws being reversed in Switzerland have been on the books since 1934. Reports are that similar actions have quietly taken place in the US banking system. The notion that banks are a safe repository for your funds is rapidly being dispelled. Banks no longer appear safe.

Your mattress or traditional stores of wealth like gold appear to be the only safe alternatives. Does anyone think that the recent take-down of gold was not, at least partially, aimed at damaging this alternative? Can you have bank runs if there is no place to run?

Here is the Silver Doctors report on the Swiss change:

The Doc * Silver Doctors

The Swiss Financial Market Supervisory Authority (FINMA) has quietly joined the growing parade of western nations who have quietly re-written banking laws to allow depositor bail-ins upon the next banking crisis. If Switzerland, the once ultimate safe haven for banking deposits across the world is preparing to confiscate depositors funds, there truly is no protection anywhere other than physical gold and silver in your own possession!

In the event that a bank is failing or where its capitalization is no longer adequate, the Swiss Financial MarketSupervisory Authority (“FINMA”) may take measures to improve such bank’s financial viability rather thanliquidating it. “Loss absorption” and “bail-in” are important instruments to support any such measures.

The Swiss document begins by advising that the FINMA now has legal authority to confiscate depositor funds, thanks to a revision of the Banking Act of 1934, completed in 2011, as well as the revision of the Bank Insolvency Ordinance completed Nov 1st 2012: 

[Continue reading]

 

Corruption Run Amuck

gallows (2)To understand why markets are so dangerous, it is only necessary to listen to this interview with economist Jeffrey Sachs. Regarding the rampant disregard of honor, truth and legality in markets, he says:

I regard the [Wall Street] moral environment as pathological …

We have a corrupt politics to the core, I’m afraid to say… both parties are up to their necks in this.

Mr. Sachs is not an outlier on this subject. People like William Black and others have been saying similar things for years.

It is interesting that given all the regulations passed in the last five years, the integrity of markets has never been so compromises. Regulations mean nothing if you don’t take and hang some prisoners.

Read Janet Tavakoli’s article on this issue and listen to the interview of Mr. Sachs.

 

White House — Banker Connection Pre Gold Collapse

ss-7853536-potOfGoldGold collapsed on Friday, April 12, 2013. The follow-through continued on Monday, April 15. I have explained elsewhere why it would be in the interests of the banks and the government to have this happen.

I am not a conspiracy theorist, but it is suspicious that on the Thursday before the Friday gold collapse there was an 11:00 AM meeting of all the major bankers at the White House.

Coincidence? Perhaps, or perhaps not.

Are things unravelling so fast that these criminals cannot cover their tracks more carefully?

To put it into a different perspective, Jim Sinclair cites Dennis Gartman who provided a statistical evaluation with the assistance of John Brimelow:

Dennis Gartman of The Gartman Letter, writes today:

Concerning gold, let’s note firstly something sent to us by our old friend John Brimelow, who had a most interesting piece in his commentary this morning regarding the violence of the recent price changes. He noted a piece written by Russell Rhoads, CFA of the CBOE Option Institute, who wrote the following:

Friday was a 4.88 standard deviation move in the price of gold. For simplicity’s sake let’s call it a five standard deviation move. Statistically we get a five standard deviation move approximately once every 4,776 years. So we should not expect another move like this out of the price of gold until May 17, 6789. … Currently the two-day price change in GLD is 16.65, which can be converted to just over eight standard deviations. I wanted to share what this comes to, but the table I use only goes up to seven standard deviations. Let’s just say the sun is expected to burn out first.

South Park Anticipates Cyprus

southpark (2)To appreciate how the citizens of Cyprus must feel, watch this clip from South Park. Is it possible they knew what was coming?

H/T to Kerry Lutz

More on Cyprus and Europe

Gordon T. Long and John Rubino discuss the Cyprus crisis. Takeaway line: “Almost anything can push us over the edge.”

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