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Good Luck Getting Your Money Out When the Next Crisis Hits

Phoenix Capital Research's picture




 

Why is it that when a banking crisis hits, everyone acts surprised?

 

The reason is actually quite simple: everyone at the top of the financial food chain are highly incentivized to keep quiet about the problems.

 

Central Banks, Bank CEOs, politicians… all of these people are focused primarily on maintaining CONFIDENCE in the system, NOT on fixing the system’s problems. Indeed, they cannot even openly discuss the system’s problems because it would quickly reveal that they are a primary cause of them.

 

For that reason, you will never and I repeat NEVER see a Central banker, Bank CEO, or politician admit openly what is happening in the financial system. Even middle managers and lower level employees won’t talk about it because A) they don’t know the truth concerning their institutions or B) they could be fired for warning others.

 

Please take a few minutes to digest what I’m telling you here. You will not be warned of the risks to your wealth by anyone in a position of power in the political financial hierarchy (with the exception of folks like Ron Paul who are usually marginalized by the media).

 

Moreover, when the Crisis DOES hit, it will be much, much harder to get your money out.

 

Consider the recent regulations implemented by SEC to stop withdrawals from happening should another crisis occur.

 

The regulation is called Rules Provide Structural and Operational Reform to Address Run Risks in Money Market Funds. It sounds relatively innocuous until you get to the below quote:

 

Redemption Gates – Under the rules, if a money market fund’s level of weekly liquid assets falls below 30 percent, a money market fund’s board could in its discretion temporarily suspend redemptions (gate).  To impose a gate, the board of directors would find that imposing a gate is in the money market fund’s best interests.  A money market fund that imposes a gate would be required to lift that gate within 10 business days, although the board of directors could determine to lift the gate earlier.  Money market funds would not be able to impose a gate for more than 10 business days in any 90-day period…

 

Also see…

 

Government Money Market Funds – Government money market funds would not be subject to the new fees and gates provisions.  However, under the proposed rules, these funds could voluntarily opt into them, if previously disclosed to investors.

 

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542347

 

In simple terms, if the system is ever under duress again, Money market funds can lock in capital (meaning you can’t get your money out) for up to 10 days. If the financial system was healthy and stable, there is no reason the regulators would be implementing this kind of reform.

 

As Zerohedge noted earlier today, the use of “gates” is spreading. A hedge fund just suspended redemptions… meaning investors cannot get their money out. Expect more and more of this to hit in the coming months as anyone who is has bet the farm on the system continuing to expand gets taken to the cleaners.

 

The solution, as it was in 2008, will not be to allow the defaults/ debt restructuring to occur. Instead, it will be focused on forcing investors to stay fully invested at whatever cost.

 

This is just the start of a much larger strategy of declaring War on Cash.

 

Indeed, we've uncovered a secret document outlining how the Fed plans to incinerate savings to force investors away from cash and into riskier assets.

 

We detail this paper and outline three investment strategies you can implement

right now to protect your capital from the Fed's sinister plan in our Special Report

Survive the Fed's War on Cash.

 

We are making 1,000 copies available for FREE the general public.

 

To pick up yours, swing by….

http://www.phoenixcapitalmarketing.com/cash.html

 

Best Regards

Phoenix Capital Research

 

 

 

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Sun, 12/13/2015 - 10:49 | 6917192 Proofreder
Proofreder's picture

Language is essential to good propaganda -

Note how temporarily suspend redemptions turned into gate -

Such an innocuous word, g a t e  - Get At The End (of the selling line)

Sun, 12/13/2015 - 10:43 | 6917177 odatruf
odatruf's picture

So the strategy for the War on Cash is to adopt just about the most effective policy possible to motivate people to hold more cash?

 

 

Sun, 12/13/2015 - 06:11 | 6916833 BiPolarFrenchman
BiPolarFrenchman's picture

Speaking of "gates", Chase bank has limited the amount of BitCoin one can buy to $25/day. You must make the purchase everyday, otherwise you lose your privledge. i.e. Not buying any for eight days does not allow you to make a $200 BTC purchase.

Sun, 12/13/2015 - 11:59 | 6917364 swmnguy
swmnguy's picture

That's pretty ridiculous.  Though to be fair, if you're interested in buying BitCoin, what are you doing running it through Chase?

Sun, 12/13/2015 - 05:30 | 6916800 roddy6667
roddy6667's picture

You can check out any time

You just can't leave.

 

Sat, 12/12/2015 - 23:45 | 6916428 cdude
cdude's picture

These Phoenix Capital "articles" are always tagged as "posted by", but I think "sponsored by" wold be more appropriate. This one is simple a repeat- which identifies it for what it is: an AD!

C'mon Tylers - this is the kind of crap that is (not so) slowly chipping away at the general credibility of ZH.

Sun, 12/13/2015 - 09:48 | 6917059 roadhazard
roadhazard's picture

They lost that when they went Full Pootin.

Sun, 12/13/2015 - 00:59 | 6916553 MsCitizen2
MsCitizen2's picture

Agreed!

Sat, 12/12/2015 - 23:17 | 6916368 ToSoft4Truth
ToSoft4Truth's picture

'It's only after we've lost everything that we're free to do anything.'

- Chuck Palahniuk

Sat, 12/12/2015 - 21:57 | 6916130 ToSoft4Truth
ToSoft4Truth's picture

Go for broke!  What do you have to lose?

“First you have to give up, first you have to *know*... not fear... *know*... that someday you're gonna die.”

- Tyler Durden

Sat, 12/12/2015 - 21:15 | 6916029 Lost in translation
Lost in translation's picture

I'd cheerfully embrace the "crisis" if it meant Phoenix Capital and Michael Snyder were gone.

Sat, 12/12/2015 - 23:27 | 6916393 BlindMonkey
BlindMonkey's picture

What are your top ten reasons for wanting Michael Snyder gone?

Sun, 12/13/2015 - 08:05 | 6916902 roddy6667
roddy6667's picture

#1-He's a Bobble thumping troglodyte.

Sat, 12/12/2015 - 19:53 | 6915822 ZombieHuntclub
ZombieHuntclub's picture

Eggs - check

1 Basket - check

Another basket - in the words of the great Isaac Hayes - You're damn right. 

Sun, 12/13/2015 - 01:32 | 6916594 drunkenlout
drunkenlout's picture

He was talkin' bout SHAFT (damn right).

Sat, 12/12/2015 - 18:12 | 6915506 Palladin
Palladin's picture

The link you posted doesn't work.

This one does:

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542347679

Your link ommitted the last three digits, "679"

Sat, 12/12/2015 - 17:43 | 6915421 petroglyph
petroglyph's picture

I hate watching myself get killed in a fucked up retirement program where what isn't stolen in fees is lost to bad "faux" choices between worse and worser. I am a few years from being able to pull it, but by then I will probably be looking for a job while the "plan" directors are laughing themselves to death and paying for their brats to go to Harvard. Grrr. 

I know it's fucked, I just can't do anything about it. And........its gone.

Sat, 12/12/2015 - 16:31 | 6915221 nevadan
nevadan's picture

"In simple terms, if the system is ever under duress again, Money market funds can lock in capital (meaning you can’t get your money out) for up to 10 days. If the financial system was healthy and stable, there is no reason the regulators would be implementing this kind of reform."

 

That's 10 business days .  No matter how you slice it, it could be Up to two weeks before you get your money back.  And maybe more if there is a day or two for wire transfers and the possibility of a holiday in the meantime.

Sat, 12/12/2015 - 16:00 | 6915140 Reverend Galileo
Reverend Galileo's picture

"...when the Crisis DOES hit, it will be much, much harder to get your money out." When they question you for withdrawing anything over $2k I would say the crisis is already here.

Sat, 12/12/2015 - 15:57 | 6915133 Handful of Dust
Handful of Dust's picture

"I am The Honorable Corzine and I approve of this message."

Sun, 12/13/2015 - 03:02 | 6916707 August
August's picture

The correct moniker, ironically enough, is the Twice Honorable John Corzine, as he served the people as both governor AND senator.

No, you can't make this shit up.

Sat, 12/12/2015 - 15:24 | 6915039 DrZipp
DrZipp's picture

This would be a problem for me, if I had any money.

Sat, 12/12/2015 - 15:38 | 6915071 tc06rtw
tc06rtw's picture

   
 Problem over…  after it’s gone, they pick on someone else.

Sat, 12/12/2015 - 15:30 | 6915056 H. Perowne
H. Perowne's picture

Mine was lost in a boating accident. Pity.

Sat, 12/12/2015 - 15:18 | 6915024 Urban Roman
Urban Roman's picture

Aaaaand it's gone.

Sat, 12/12/2015 - 20:57 | 6915991 Full Nelson
Full Nelson's picture

Move aside, Mrs. Fartnickle.

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