What Is A Bail-In? – Why You Should Be Concerned

On January 17th, 2016, Josh Sigurdson spoke with author and economist John Sneisen about bail-ins. As bail-ins are a rather new practice that many are quite unaware of, John Sneisen fills us in on exactly what a bail-in is and how it affects us, the market and the business in question.
While bail-ins are less politically unpopular than bail-outs, they affect us negatively and of course coerce us into opening our wallets like most forceful government actions.
As John Sneisen said,
“People say that bail-ins would be way better than bail-outs because it doesn’t hurt taxpayers. Problem is, every single person that gets hurt by bail-ins are taxpayers.”
The most worrisome situation one could come upon when it comes to bail-ins is the banking system and their ability to rob their customers. As John points out, when your money is in a bank account, it’s not yours and the bank can do what they wish with it. You sign over that right when you get a bank account. When banks run business irresponsibly and end up nearly going under, the idea that they can steal from their customers is alarming. Whether bail-ins or bail-outs, banks and corporations should answer to their own bad decisions, their customers shouldn’t have to forcefully tapped and pay for bad practices.

While bail-ins were tried in Cyprus with the banking system and similar protocols were used in the airline industry, the risk of it happening in the U.S. and Canada is quite real. The Canadian government has taken action and published real initiatives to use bail-ins in the future. According to the Canadian government, “The Government proposes to implement a “bail-in” regime for systemically important banks.”
So basically, if a bank is too big to fail (an absurd concept from the start) the government will force their customer to pay up. Notice the use of the word “regime”.

This hurts customers, creditors, depositors and the company involved as well. We should be answering for our own mistakes and not coercing others because we screwed up. Can you imagine going broke and forcing your children into debt to pay off the mistake you made?

We will continue to report on bail-ins in the future as it becomes a more commonly used source of patchwork for bad business dealings.

You can find more from John Thore Stub Sneisen at The Economic Truth and you can find his book “The End of Freedom: How Our Monetary System Enslaves Us” on Amazon!

Video edited by Josh Sigurdson

Featuring:
John Sneisen
Josh Sigurdson

Camera work:
John Doull

Graphics by Bryan Foerster

LIKE us on Facebook at World Alternative Media
or
Follow us on Twitter @WorldAltMedia

DONATE HERE:
https://www.gofundme.com/w3e2es
Help keep independent media alive!

World Alternative Media
2016

“Find the truth, be the change.”

LINKS:
http://actionplan.gc.ca/en/initiative/risk-management-framework-domestic-systemically

http://ca.reuters.com/article/businessNews/idCAKBN0OD14Z20150528

https://www.imf.org/external/pubs/ft/sdn/2012/sdn1203.pdf

(50)

About The Author
-

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>