Thursday, April 18, 2013

Mark Carney: Supports Canadian Bail in regime- NO GUARANTEES FOR DEPOSITORS
The Canadian Bank "bail in" news is making the rounds yet again... Central Banker Mark Carney is pushing the same lies I have already addressed in the two previous posts on this subject and yes, I am going to relink them!

Canadian deposits safe under bail-in, but no guarantee: Carney

"Mark Carney says policy-makers are working diligently to devise an international “bail-in” regime to prevent big bank failures, but he offered no guarantee global depositors would be protected under all circumstances."

No guarantees.

“Canadian institutions have substantial unsecured debt obligations in the wholesale market and as well as other classes of capital, and they have substantial capital as well, so once you stack all of that up.....

The banks in Cyprus has substantial capital. Mark Carney is well aware of that fact.

The bail-in approach broadly speaking, not bail-in as it was performed a couple of weeks ago in Cyprus, but bail-in as a component of addressing systemic risk … is an absolutely necessary element, it doesn’t solve everything but it’s absolutely necessary,” he said.
The bail in approach doesn't solve anything. The banks should fail


  1. Slozo: should you stop back in

    Any advice on where to purchase gold
    other then the to big to fail banks?

  2. Gold is not a stable or a for value investment. Gold is valued by markets at the moment, the true price of Gold is valued by extraction, tonnage in dig/scrape (Cost equipment/fuel) per OZ extracted, I know as I have experience in mining. The current costs $500-700 depending on environment and operational dynamics, above that is the Market buy-in, and the rest is mark-ups. The only way you could speculate in Gold is if you buy around the sub $1200 per troy Oz, however I would not touch it above $900 per troy OZ. You can still buy in W. Africa and many other mining locations 20% below market pricing, that is a clear indication of a falsely inflated commodity, and in turn, a commodity that will fall.

    Silver is a valued and much used metal in industry, it is also a manageable investment commodity for most (Cost). Silver reserves in the ground will last only 10 years. Buying Silver is at times volatile, but its volatility range is 3-5%. However in 5 years, even 3 years, Silver will hit $50, so a strong return. In ten years, since the only silver is what is on the markets or in objects (Man made), the value will increase greatly, one could see $100 and up.

    As I see it, get land, start farming, food and staples will always have value. If the S*** hits the fan, you can always have food on the table.