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Land Of The Rising Bail In: Deposit Confiscation Coming To Japan Next
We now know that 'muddle through' is over, and just as we noted here "there may only be painful ways out of this crisis" as we evidenced by Europe's attack on Cypriot depositors. With the pillars of Abenomics starting to crumble, it seems plans are afoot to prepare for the bank failures that will come from a BoJ-inspired out-of-control bond market.
As Nikkei reports, Japan's Financial Services Agency will enact new rules that will forced failed bank losses on investors, if needed, via a mechanism known as a "bail-in."
The FSA report also notes that Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases.
So not only will Japanese banks suffer VaR shock-driven needs to reduce JGB holdings but a weaker deposit base will further exacerbate the delveraging.
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banks profit from bonds = bonus time
banks lose from bonds = bailout AND bonus time
I will be having a sale on hari kari knives....
"The FSA report also notes that Mitsubishi UFJ (MTU), Mizuho Financial (MFG) and Sumitomo Mitsui (SMFG) are among those proposing amendments to allow them to issue the types of preferred shares or subordinated bonds that would be used in such cases"
Fuck that noise... if I am going to be the involuntary victim of a drive-by 'Bail In' I want nothing but equity baby... full fucking Class A non-subordinated testosterone soaked EQUITY... I want the keys to the shitmobile that they just handed me the ownership papers to...
And what I would do next would make those Abenomics clowns turn white and puke huge chunks like Paulson did back in '08...
Can things really get that much worse in Japan? Tokyo is irradiated, the ocean around Japan is an open sewer of radioactive death, all their kids will have leukemia in a few years and everything will soon enough be a tranquil wasteland devoid of all life. If you take away all the money, can things really get that much worse?
I put in bread in the toaster in the morning. When it pops out I ask, "Who wants to see what Japan looks like?"
Your totally correct, Fukishima is irradiating that whole place along with the ocean. The BOJ is in trouble and it's no wonder that our markets are having trouble trying to stay positive at all. Because Japan is about to implode.
when i get pissed about the responsibility shifting tactics of the US govt and the Fed i try to remember the poor kids in fukushima/kanto that are getting tossed on the alter of japanese status quo. they have it worst of all.
Agreed
The whole world should be dropping these criminals in the middle of the Fukushima mess. Governments all around the world are complicit in the misery and death they knowingly inflict on those that foolishly entrust them with authority.
Large %'s of kids in and around Fukushima have been sentenced to a painful miserable life and quite possibly also an equally painful early death thanks to the lies and idiocy of a number of governments and corporations.
If you don't read Japanese let me interpret the preliminary results for you. These poor kids are f*cked.
http://www.env.go.jp/press/press.php?serial=16419
http://www.pref.fukushima.jp/imu/kenkoukanri/250213siryou2.pdf
Yes please fucking interpret the results for us.
The first is showing that 99% of the examined suffered no to minimal thyroid gland enlargement.
Sure, no problem.
They went from 35% having at least something developing in their thyroid, to 43% having at least something developing in their thyroid, in a one year span. It's also worth noting that the sample size was much larger the second year of the study. This study had nothing to do with thyroid gland enlargement, these are actual cysts/nodules forming on the thyroid itself. The longer Fukushima remains completely uncontained (current state), the worse this is going to get. Note also that the radiation being emitted doesn't just affect the thyroid; any/all glandular tissue is affected here. Think reproductive organs here.
I wonder have birth defects risen on Japan since the nuclear disaster. No one is saying.
Bugger off GW
The following are the Banks that have been given permission to"Bail In"
Citigroup, HSBC,Deutsche Bank,JPMorgan Chase,BNP Paribas,Barcleys, Bank of New York Mellon, Bank of America,Misubishi UFJ FG,Credit Suisse, Morgan Stanley, RBS,UBS,Bank of China, BBVA,Groupe BPCE, ING, Group Credit Agricole, Mizuho FG, Nodea, Santander, Societe Generale, Sumitomo MitsuiFG, Unicredit Group, Wells Fargo, Standard Chartered, State Street..... and of course Who else but the Bank thats not a Bank but a gambling den of thieves... Goldman Sachs.
The are deemed to be systemically " Important Financial Institutions"
Hat tip to the FSA OF SWITZERLAND
If they fail you lose baby!..... Watch and wait but be under No Illusion the credit cycle rolled over at Easter and continues.
Many other Banks have been told to prepare should one fail the stopping ofbthe falling Dominos will be brutal.
I am shocked !!!!!!!!!!!!!
Bare in?
Coming to a bank near you.
In Japan, bail-ins are also stated as a:
1...2...3...Karate CHOP!
opening a new account earns you not a toaster, not a spiderman towel, but a free gi! sign up now. supplies are limitless.
So depositors are investors... right?
Taxpayers take the loss when banks are winning at bonds, pension funds and taxpayers take the loss when banks lose at bonds. Either way the CEO gets a bonus. Simple really.
Good job if you can get it. I just hope my belief in karama is justified.
Your belief in karma is justified. Karma's aim is not so great though and it tends to miss a few ...
The Roaches will get their 7-course Kobe steaks, sake and Geisha no matter what:
http://www.dba-oracle.com/images/food_steak.jpg
http://geishajapan.files.wordpress.com/2011/03/geishahalfnaked1.jpg
if that isn't bullish for gold I don't know what is
Option 1: Pull Yen out of bank and buy stawks
Option 2: Pull Yen out of bank and buy JGBs
Option 3: Pull Yen out of bank and buy gold / silver
Option 4: Don't pull out and pray... <--- This is what I usually do, but I don't hold Yen, and my side piece lets me.
I took option 4 and ended up with a kid.
+1
Medical science now knows where babies come from, so its really not the mystery people purport it to be.
Option 5: Pull Yen out of bank. Pull yourself out of Japan.
BOHICA!
google translate: ??????????????
it didn't work, so here it is: http://missywpp.wordpress.com/2013/06/11/%E3%81%93%E3%81%93%E3%81%AB%E8%...
Kind of off thread but not really.
Is anyone familiar with HS Dent's newsletters, blogs, interviews and books to know whether he was truly as accurate as he says he was about his predictions over the last 20 years?
I just started getting into him. He's really put his credibility on the line because he has very outwardly predicted a deflationary depression starting no later than the end of 2014.
Anybody have the skinny on this guy?
I clearly remember his flagship "dent demographics fund" bombing and being folded into another loser fund about a decade ago.
Try Schiff, he is usually early, but right.
You're talking about " the roaring 2000s" guy right? Dow to 20k?
Think that's the same guy. If so, not so much, cheerleader, book promoter, trend follower.
Harry Dent is predicting Dow 3300
is he related to Harvey Dent?
sometimes.......
Two-Face the Hedge Fund manager. some days he calls for the end of the world, the next he calls for DOW 20,000.
In 1999 he had a book out, "the roaring 2000s" where he predicted dow at 20,000. Now, after the crash he predicts 3300. I think he's late to the trend. Maybe use him as a countertrend signal.
Harry( flim-flam ) Dent is as phony as a 3 dollar bill. Can't believe he's still around, his track record rivals Greenspans. Stay away.
Just like Cyprus, Spain, Canada and the UK are all either planning or already doing...
You just got Cyprused!
Don't drone me bro!
Don't Cyprus me bro!
Don't Corzine me bro!
Don't QE me bro!
Don't record my emails and phone calls bro!
Don't turn my dollars into toilet paper bro!
Don't Obamacare me bro!
Don't high tax me bro!
Don't frisk and xray me bro!
Don't disarm me bro!
Don't chip me bro!
You and me might be able to do some business together, just don't fiat me bro!
This roundeye is taking his money and going home.
Just a Gaijin man in the land of the rising sun.
http://www.youtube.com/watch?v=SlfdQXrCL-w
Dishonest Abe,
I think you're going Japanese, I think you're going Japanese, I really think so.
The Japanese article says losses will be forced on investors, not depositors.
http://www.nikkei.com/article/DGXNASGC1100T_R10C13A6EE8000/
The IMF declares only insured/guaranteed depositors should be protected...like in Cyprus.
"The legal framework will need to clearly specify which bank liabilities may be restructured under the bail-in power. To improve transparency and avoid uncertainty, only subordinated and senior unsecured debt should be subject to bail-in. Insured/guaranteed deposits, secured debt (including covered bonds), and repurchase agreements should be excluded from restructuring."
I think it says the burden will be put on investors, not passed on to tax payers
but of course the Zero Heads will never let accuracy get in the way of a good piece of alarmism
Depositors are creditors that can be converted into equity holders, therefore depositors ARE investors.
Included in the definition of "investor" are deposits in excess of insured guarantee. Applied to the U.S., this would mean aggregate deposits in excess of $250,000. If you have $300K in the bank, then $50K of that is "investor funds".
Backing reason behind this is pretty simple. $9.6 trillion USD in deposits is insured by $25-$30 bln in FDIC insurance funds.
But hey, never let ignorance get in the way of trashing ZHers.
The article does indeed use the word "toushisha" which is Japanese for investor. But if you're gonna take somebody's money and give him preferred stock or subordinated bonds in return what kind of investor do you think that would be? Right, the kind who invests by opening a regular account in the bank. In other words, Cyprus Part Deux
If you deposit your hard earned into ANY Bank you are an "Unsecured Lender" ego you are a unsecured investor. The bank can do what it wants with it.. they can gamble it on a derivitave or loan it to a NINGA.They can buy shares in their own bank or buy dodgy Bonds. If it goes tits up you stand last in line. If you check World wide the Bail in is now dried ink. You think Cyprus was a one off?. First to move when one of the top 20 get burnt will at least have some cash and that cash will buy you what you bid. Trust me on this. Return of Capital trumps return on Capital in any card game you boys like to play in.
Post Cyprus, "investors" = "Depositors".
The Japanese are famous for keeping their wealth in bank deposits. This is a scheme to scare them into moving money into what the parasites want -- securities, properties, etc. to steal their money "legally." The Wall Street has been dying to get their hands on the massive Japanese private-sector wealth. Abe and other U.S. puppets are making things easier for Wall Street banksters.
Don't know about that... That sounds like a scheme to push a sane person into buying (more) PMs
More signs that they will skank (h/t fonz) the money rather than bail out the banks by printing........get ready folks and keep dollars outside the system.....
I mean could they not make it more obvious? WTF? Who announces the skank pre skank?
That used to defeat the purpose??????
They have an appointed offical called the Skankmeister to announce that.
Inflationary scenario still makes the most sense. They can buy a bunch of commodities with newly created currency before inflation trickles down, right up until it goes parabolic. Then when everyone is holding the (worthless) bag, they buy even more stuff with the commodities they bought before. WIN!
It does make sense to keep PMs/FRNs outside of any system. FRNs will work right up until they don't, in which case you will need PMs for when everything goes black market.
Bail-ins would create immediate bank runs. You can't hide bail-ins. Inflation is the much more cowardly and slow way to boil a frog. If you keep telling people there is no inflation based on some bogus government lies, they might actually believe it! Also, the key with inflation is that most people don't understand the way it works or even who to blame, so they work longer hours, go further into debt, etc. Even fewer people know how to protect themselves from inflation. I know a lot of seemingly intelligent people that can't figure out why the stock market is so high, and everything is getting so expensive, and they can't find a job, etc.
TPTB win tremendously through hyperinflation. They get vastly wealthier, buy everything, and get to control people even more than they do now. They also choose what happens afterwards. Sure, some of us will do great, but they will dominate. Put it together, man.
Twenty years too late. They should've ackowledged these banks had failed decades ago.
Instead of going Kamikaze on the banksters they will probably commit suicide. The banksters know this.
You know back in a sane world. When you said investor and bank in the same sentence you were talking about the stock and bond holders. Now your talking about the depositors. In which case why even have deposit insurance.
Becuase you have to keep up the pretense that Bankers are important, and honorable men.
Seriously, you couldn't have possibly asked a better question Nue! Doh!
The moment that happens; then its game over for euroland, people will see what started at home has happened again in such a short period of time over seas that even the silver generation cant simply ignore? can they?
Funny, I spoke to my work colleage about the loss of depositor money and he never heard anything about it. He said, I don't listen to the news. But when I told him, he was googling, asking around the office, do you think they'll do it here in the UK? Very interesting and makes me wonder how many just simply ignore everything until its in their face.
The term that's been adopted in the US/UK/EU and elsewhere by the political and central bank criminals to confuse depositors and distract them away from the Cypress term "bail-in" is "Bank Resolution".
This document dated 10th December 2012, issued jontly by the BoE & US FDIC sets out in confusing banker-speak what their plans are for bail-ins if/when the need arises:
"Resolving Globally Active, Systemically Important, Financial Institutions" http://www.fdic.gov/about/srac/2012/gsifi.pdf
It is my view that in the UK, no forewarnng of a bank bail-in will be given by anybody. People will simply wake up one morning to hear that XYZ Bank is closed for 2-3 days whilst it take actions to "resolve" itself. Meaning, while it runs its computers to steal money from depositor accounts.
Perhaps the most devious aspect is that in the UK, the BoE & commercial banks have the authority to go ahead and implement the policy without any official public announcement by the Chancellor, thereby saving the Chancellor from getting it in the neck. He will simply duck the issue and pass it over to the banks as if it has nowt to do with him.
You mean it would be a surprise attack? Well, the Japs are experts at that.
Not if one believes the conspiracy theories ...
95 %
Umm I was thinking if the people around Fukushima are radioactive therefore they should be classed as a biohazard. Are these individuals allowed to travel freely? Imagine sitting on a Trans Pacific flight with one of these people; that nice warm feeling might be something sinister.
Banzai, motherfuckers!!!