by system
failure
Many people
today, know about the case of Agglo-Irish bank's higher executives,
where two of them have been recorded talking about how they misled
Irish government, by asking 7 billion euros bailout for a start,
while they knew that this amount was not enough for the bank
rescue. In these recordings that have been revealed by the Irish
Independent (http://www.independent.ie/business/irish/inside-anglo-the-secret-recordings-29366837.html), banksters appear to hide the real damage of the
collapsing bank, in order to drag government in a repeated cycle of
bailout packages, at the expense of taxpayers of course. The final
bailout for the Agglo-Irish bank, reached the amount of 30 billion
euros, nearly 22 per cent of Ireland's GDP!
It is almost
certain that, the banksters will laugh this time, with the European
Economic and Financial Affairs Council's (ECOFIN) decision, taken
about a month ago, concerning the participation of shareholders and
depositors in future possible damages of the banks, what they called
"bail in". And this because, in such deregulation
conditions, banksters will have the opportunity, not only to get away
without paying a cent, in a potential banking crisis, but on the
contrary, to gain from such a situation according various possible
scenarios.
For a start,
the decision transforms the depositors into "investors against their will", but with a major difference since they will not
have any right on the investment options of any bank. Just think
that, three decades ago, or earlier, the deposits in banks, enjoyed
security and high interest rates. Through this decision, the
depositors, not only left unprotected from golden boys' choices,
which are guided exclusively by their greed, but they will be
considered equally responsible for these choices, and will
participate in damages, without having the right to decide.
On the basis
of a potential scenario, the key shareholders and depositors of
special privileges, who will have the suitable access on "inside
information" about an oncoming banking crisis, will have the
opportunity to withdraw capitals and deposits on time, leaving the
rest, therefore mostly, small depositors and independent
shareholders, to pay the bill. After that, they will have the
opportunity to "come back" - if they want and if the bank is still
alive - under different investment fund formations, as saviors of the collapsing bank, obtaining again the basic
control, and gaining from the whole situation since they will not
have to contribute with their original capital in the required
minimum fractional reserve.
This, of
course, is just one of the many potential scenarios. Beyond this, the
decision hits particularly the small commercial banks, which depend
to a great extent on deposits, and thus, they become even easier
victims for the big investment banks, which control the money flow in
eurozone, and are mainly responsible for the last big economic crisis
in the United States and Europe, according to the US Financial Crisis
Inquiry Commission report.
The biggest
insurance companies will also benefit from the decision since, in a
potential "bail in", those who will be called first for the
bank rescue, besides shareholders, will be the uninsuranced
creditors and the uninsuranced deposits of big companies.
Additionally, ECOFIN's officials, didn't bother to clarify, what will happen
with the decision of the European leaders, about a year ago in the
European summit, an initiative of the Italian ex-Prime Minister,
Mario Monti, according to which, European banks will be
re-capitalized straightly from the European support mechanisms,
without the "annoying" inspection of each member-state
separately, but in expense, of course, of the European taxpayers as a
whole.
Thus, the
pointless effort of the European authorities to put some rules in a
system which has been deregulated by them, and which they continue to
deregulate further, guided by the Greek crisis, for the benefit of
the big capital, seems that makes banksters laugh again. But the
rest of us, as we experiencing the tragic consequences of the crisis
they created, unfortunately, we don't have the ... luxury to laugh.
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