• Gold Money
    05/03/2016 - 11:35
    Crude oil time-spreads have completely dislocated from inventories. Historically, such dislocations have proved to be short lived. We expect that either spot prices will sell-off again or the back...

Unsecured Depositors Of The World, Unite... And Get The Hell Out Of These Countries

Tyler Durden's picture




 

Based on the most recent data, JPMorgan notes that the share of large or uninsured deposits is likely to be close to half of total deposits in the European Union. With deposits already flowing out of some of the peripheral EU nations...

(as we warned here)

 

we thought it appropriate to point out just which nations have the largest share of uninsured deposits (and are not yet under the ECB's 'standard of living' capital controls). It seems - among many others - that despite France throwing in the towel on the 75% income tax, there is another good reason for the wealthy to leave...

 

The only reason why Europe has been slow to impair its loans (as shown by the artificial rise in Italian and Spanish bad debt) over the past 4 years, is that a full representation of reality on the asset side (such as that which finally caught up with Cyprus) would lead to a dramatic collapse in balance sheet assets, requiring a comparable crunch on the liability side, where unsecured liabilities such as deposits would certainly take a big hit as well (especially if an equity cram up such as that of Citi is required to preserve the equity tranche).

 

 

Which is why the only thing preventing a "Cyprus-type event" from spreading to other nations is the gradual, determined bad debt impairment.

Of course, should there be a risk flaring event and banks are forced to remark bad debt to reality, what just happened in Cyprus will be a gentle breeze compared to what would come.

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 03/23/2013 - 15:40 | 3366382 Mongo
Mongo's picture

Haircut bitchez!

Sat, 03/23/2013 - 15:44 | 3366391 macholatte
macholatte's picture
Unsecured Depositors Of The World

 

Wait a minute,  According to Cyprus, ALL deposits are unsecured.

Sat, 03/23/2013 - 15:56 | 3366408 DoChenRollingBearing
DoChenRollingBearing's picture

Ideally, each of us should get to the point where money in the bank IS diversification, he he...  After all, keeping ALL of your money and PMs at home might be a bit risky, why not leave a little (in the USA anyway) in the bank where a random burglary will not ruin your life?

EDIT:

And to be able to write checks, use credit cards, etc.  SMALL amounts in the bank: for diversification!  :)

Sat, 03/23/2013 - 16:06 | 3366430 knukles
knukles's picture

Disintermediation, Bitchez!

Bank runs, deposit outflows gotta be replaced by "sumptin' else Lichi"* like loans from the ECB, BoE, Fed, whateveritmayB...
Lending Grounds to a halt (as if there was any, anyhow)
Withdrawal caps
Cash only society
Fucking everything shuts down
Liquidiy Trap Deluxe
Credibility Tarp Deluxe

Panic in River City

Root for the bread lines!

All Hail The European Union!
And just think, all because of one stupid idea...
Buncha fucktards.

 

* courtesy Desi Arnez

Sat, 03/23/2013 - 16:07 | 3366455 ihedgemyhedges
ihedgemyhedges's picture

DYSLECTICS OF THE WORLD: UNTIE!!!

Sat, 03/23/2013 - 16:18 | 3366490 toys for tits
toys for tits's picture

There's a new organization called "Mothers Against Dyslexia", or DAM.

 

 

Like most things it's better orally.

Sat, 03/23/2013 - 16:31 | 3366515 Kitler
Kitler's picture

No need to worry people. You can be certain that by now the Bank Of G-d and the ECB have all of the bases covered.

Odds are that there is a warehouse somewhere with around $60T in globally denominated currencies just waiting to be FedExed to the angry queues that will soon be forming.

This is just the inflationary ticket we need to get our Western ponziconomies up and running again, provide relief from our debt burden, make us competitve with the East and keep our bankers happy.

Sat, 03/23/2013 - 16:33 | 3366538 HD
HD's picture

FedEx owns a fleet of wheelbarrows?

Sun, 03/24/2013 - 05:40 | 3367810 GetZeeGold
GetZeeGold's picture

 

 

DYSLECTICS OF THE WORLD: UNTIE!!!

 

Those bankers are forkin iceholes.....bunch of bastages!!!!

Sat, 03/23/2013 - 17:53 | 3366812 edb5s
edb5s's picture

Beats the hell out of a helicopter!

Sun, 03/24/2013 - 00:45 | 3367666 PiratePawpaw
PiratePawpaw's picture

"

Unsecured Depositors Of The World, Unite... And Get The Hell Out Of These Countries"

 

Or just realize that you were total fools for having any deposits anywhere.....

Sun, 03/24/2013 - 08:36 | 3367937 Mr. Lucky
Mr. Lucky's picture

You're going to need a bigger boat.

Sat, 03/23/2013 - 17:35 | 3366732 Awakened Sheeple
Awakened Sheeple's picture

I bought a $400 portable generator, filled up all my gas cans, batteries etc today. Spent about $700 bucks total. Krugman would be pleased.

Sun, 03/24/2013 - 07:53 | 3367812 GetZeeGold
GetZeeGold's picture

 

 

Next thing you need to do is breakout all the windows....and wait for the relief.

Sat, 03/23/2013 - 16:31 | 3366533 Jonas Parker
Jonas Parker's picture

And the dyslexic agnostic - wondered his whole life if there really was a Dog...

Sat, 03/23/2013 - 16:48 | 3366599 akak
akak's picture

And worrying whether his mother will be serving keys and parrots at dinner the next day.

Sat, 03/23/2013 - 17:24 | 3366699 Stuck on Zero
Stuck on Zero's picture

Fortunately the dyslexic's Mother's name is Ada and the Father's is Bob. 

Sat, 03/23/2013 - 22:22 | 3367490 jeff montanye
jeff montanye's picture

and she's been deified while he still drives his race car.

 

Sun, 03/24/2013 - 03:46 | 3367758 A Nanny Moose
A Nanny Moose's picture

I though it was DAMM. Drunks against Mad Mothers.

Sat, 03/23/2013 - 16:40 | 3366559 NeoLuddite
NeoLuddite's picture

Dyslectic agnostic insomniac lays awake every night wondering if there really is a doG.

Sat, 03/23/2013 - 17:12 | 3366649 max2205
max2205's picture

Bad debt is like the in law that visits then never leaves

Sun, 03/24/2013 - 03:50 | 3367759 RafterManFMJ
RafterManFMJ's picture

I gave ya a thumbs up Neo, but careful; this place doesn't like smack talk about insomniacs.

Sat, 03/23/2013 - 17:00 | 3366624 New_Meat
New_Meat's picture

actually; lysdexicks, but well ... :-)

Sat, 03/23/2013 - 16:11 | 3366460 DoChenRollingBearing
DoChenRollingBearing's picture

That too, Bitchez!  Paper fiat$ > electrons in the bank.

 

Diversification, disintermediation, schmuckification.  <--- No difference!

Sat, 03/23/2013 - 16:19 | 3366494 Arrowflinger
Arrowflinger's picture

Zzzzzzttt.....and it's GONE!

Sat, 03/23/2013 - 16:30 | 3366529 Skateboarder
Skateboarder's picture

"How much money is there in the whole wide world, dad?"

"A jillion dollars"

"Isn't the next bailout a jillion dollars?"

"Yeah, but the TV says we'll be alright. Now shut up and eat your horsemeat."

Sat, 03/23/2013 - 16:07 | 3366457 JohnG
JohnG's picture

 

 

The FDIC has around $25 billions insuring well over $9 trillions in deposits.

The US should be on this list.

Sat, 03/23/2013 - 16:11 | 3366468 Mordenkainen
Mordenkainen's picture

Well, $25 billion plus Ben's helecopters (which is to say, plus infinity).

Sat, 03/23/2013 - 16:15 | 3366482 JohnG
JohnG's picture

Welcome to hell.

Sun, 03/24/2013 - 00:39 | 3367659 flacon
flacon's picture

What the fuck do you mean I can't take an electron out of the ATM machine! That-a-my-a-money! That-a-my-a-money! 

Sat, 03/23/2013 - 16:11 | 3366469 pods
pods's picture

I think I am going to watch Outbreak.  

Seems fitting.

pods

Sat, 03/23/2013 - 16:13 | 3366476 JohnG
JohnG's picture

I watched 28 Days Later last night.  Seriously.

Sat, 03/23/2013 - 17:53 | 3366811 tsx500
tsx500's picture

V for Vendetta

Sat, 03/23/2013 - 18:07 | 3366858 francis_sawyer
francis_sawyer's picture

Logan's Run...

Sat, 03/23/2013 - 18:30 | 3366918 dark pools of soros
dark pools of soros's picture

more like Pretty Little Liars if it was recast with old bald jews

Sat, 03/23/2013 - 19:19 | 3367078 toys for tits
toys for tits's picture

The International shows what this corruption would look like if it was on a small scale.

Sat, 03/23/2013 - 22:03 | 3367455 Prometheus418
Prometheus418's picture

Justified for me, and that'll work in my neck of the world.

Sun, 03/24/2013 - 00:41 | 3367662 flacon
flacon's picture

I watched Hells Kitchen on my wife's laptop. IT'S FUCKING RAW! GET OUT! GET THE FUCK OUT OF MY BANK!

Sun, 03/24/2013 - 02:29 | 3367729 MisterMousePotato
MisterMousePotato's picture

The Road.

Much cheerier than your selections.

Sat, 03/23/2013 - 23:21 | 3367557 pods
pods's picture

People should not be afraid of their governments, governments should be afraid of their people.

pods

Sat, 03/23/2013 - 20:41 | 3367280 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

The Road

Sat, 03/23/2013 - 20:56 | 3367319 pods
pods's picture

That one was in my head, but I didn't want to go there, having kids and all.

pods

Sun, 03/24/2013 - 02:30 | 3367730 MisterMousePotato
MisterMousePotato's picture

That's what I suggested above (hadn't gotten this far yet). Always cheers me right up.

Sat, 03/23/2013 - 22:19 | 3367484 What you talkin...
What you talkin about Willis's picture

El Topo

Sun, 03/24/2013 - 03:17 | 3367749 snakeboat
snakeboat's picture

Jericho's close to what may come...

Sat, 03/23/2013 - 16:42 | 3366571 fonzannoon
fonzannoon's picture

they need a new version of outbreak where they end up just firebombing the town.

Sat, 03/23/2013 - 16:48 | 3366594 JohnG
JohnG's picture

 

 

Nuke it from orbit.

"It's the only way to be sure." --Ripley

Sat, 03/23/2013 - 19:23 | 3367086 GeezerGeek
GeezerGeek's picture

I prefer Kelly's Heroes, because the good guys get the gold.

Do NOT follow this link or you will be banned from the site!