Run on the bank

[cyu]

http://www.bbc.co.uk/news/business-25861717

HSBC customers were stopped from withdrawing amounts ranging from £5,000 to £10,000.

the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

http://www.zerohedge.com/news/2014-0...sh-withdrawals

Following research last week suggesting that HSBC has a major capital shortfall, news that HSBC is imposing restrictions on large cash withdrawals raising a number of red flags.

[Marshal of the People]

http://www.bbc.co.uk/news/business-25861717

HSBC customers were stopped from withdrawing amounts ranging from £5,000 to £10,000.

the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day.

http://www.zerohedge.com/news/2014-0...sh-withdrawals

Following research last week suggesting that HSBC has a major capital shortfall, news that HSBC is imposing restrictions on large cash withdrawals raising a number of red flags.

HSBC is technically stealing people money if they refuse to give it back to them when they ask, capitalism!

[argeiphontes]

It warms my heart to see a big bank fail. It's like looking at pictures of baby animals.

[Sinister Intents]

HSBC is technically stealing people money if they refuse to give it back to them when they ask, capitalism!

All banks essentially steal money haha, fuck banks I hate banks.

It warms my heart to see a big bank fail. It's like looking at pictures of baby animals.

Indeed ^-^

[Trap Queen Voxxy]

It warms my heart to see a big bank fail. It's like looking at pictures of baby animals.

For a bank to fail means the misery of thousands if not millions of people. Only way that situation would "warn my heart," is if the story ends like "...then the people overwhelmed with rage stormed the banks, held up the board meeting and after a collective vote and stroke of genius, the honest citizens killed and ate the bankers."

[Marshal of the People]

It warms my heart to see a big bank fail. It's like looking at pictures of baby animals.

What about the people who lost all their money and become destitute and homeless and die?

[argeiphontes]

Consumer bank deposits are insured by the government. Sorry, maybe that's not true in the UK.

[tallguy]

Consumer bank deposits are insured by the government. Sorry, maybe that's not true in the UK.

No they're not. A "government backed bank deposit guarantee" only has value in terms of persuading people they do not need to use it. In other words, it's a confidence trick. If it ever came to the point where they did need to use it on a large scale, the game would be up.

[tuwix]

It warms my heart to see a big bank fail. It's like looking at pictures of baby animals.

Your joy is premature. I'm afraid they are "too big to fail"...

[cyu]

http://www.zerohedge.com/news/2014-0...sh-withdrawals

It would appear the fears of a global bank run are spreading. From HSBC's limiting large cash withdrawals to Lloyds ATMs going down, Bloomberg reports that 'My Bank' - one of Russia's top 200 lenders by assets - has introduced a complete ban on cash withdrawals until next week. While the Ruble has been losing ground rapidly recently, we suspect few have been expecting bank runs in Russia.

Interestingly, Russia's biggest lender Sberbank has seen a 8.7% rise in deposits in December... it seems Russians are realizing that bank deposits are nothing more than risky loans to highly levered entities

[cyu]

http://www.talkmarkets.com/content/n...ves?post=40082

A vice president at JPMorgan's European headquarters in London plunged to his death after jumping from the top of the 33rd floor. He fell more than 500 feet, according to eyewitnesses. This comes on the heels of news that a former Deutsche Bank executive was found hanged in his home in London on Sunday. markets have gone down a little bit recently but they certainly have not crashed yet. Could there be more to these deaths than meets the eye?

Last week, a U.K.-based communications director at Swiss Re AG died last week. The cause of death has not been made public.

[Lenina Rosenweg]

Capitalism in the developed would is simply displacing its crisis. In plain terms a"developing world" bubble has been created by the US Fed's and other central banks qualitative easing.The bubble looks like it is now bursting.


A good article on what's happening

http://www.counterpunch.org/2014/01/...l-instability/

The Fed was warned early on that its uber-accommodative monetary policy was spilling over into emerging markets and creating conditions for another financial crisis. Take a look at this excerpt from an article in Bloomberg back in 2010 where Nobel prize winning economist, Joseph Stiglitz, explicitly warns the Fed of the dangers of QE.

From a more Marxist perspective
http://roarmag.org/2014/01/david-har...talist-crisis/

You may not have read about it in the regular media yet, but the financial press is full of it: financial markets are currently experiencing a “bloodbath” over the deepening turmoil in the global periphery. As I wrote on Friday, five years since the collapse of Lehman Brothers, we may now find ourselves at the start of a new phase in the global financial crisis. Just when European leaders were boasting about their debt problem finally being “under control”, investors are losing their cool over a Chinese slowdown and the Federal Reserve ‘tapering’ its stimulus program. The fear is that the resultant liquidity crunch and commodity slump will negatively affect the ability of some developing countries to pay back the debts they accrued over the past decade of cheap credit.

[ckaihatsu]

Markets see biggest two-day drop in seven months

http://www.revleft.com/vb/markets-se...669/index.html


China on verge of meltdown

http://www.revleft.com/vb/china-verg...980/index.html

[Ocean Seal]

For a bank to fail means the misery of thousands if not millions of people. Only way that situation would "warn my heart," is if the story ends like "...then the people overwhelmed with rage stormed the banks, held up the board meeting and after a collective vote and stroke of genius, the honest citizens killed and ate the bankers."

I disagree with you here. If our friend is excited at the thought of a bank failing, then we should encourage him. I mean come on banks have failed before and people have gotten their money back, And secondly, this is like the whole "we should feel sad when companies collapse when people lose their jobs" most people who were are interested in, have very little stake in the banks prospering. In the grand scheme of things a couple hundred dollars don't matter, in the same way that a job doesn't.

[cyu]

http://www.talkmarkets.com/content/n...eek?post=40175

Russell Investments' Chief Economist (and former Fed economist) Mike Dueker was found dead at the side of a highway in Washington State. Police said the death appeared to be a suicide.

Pierce County Detective Ed Troyer said Dueker was having problems at work, without elaborating.

He published dozens of research papers over the past two decades, many on monetary policy, which ranks him among the top 5 percent of economists by number of works published.

[cyu]

A bunch of still-thinks-capitalism-works claptrap in here, but interesting to see a millionaire advocate a run on BofA: http://www.pbs.org/newshour/making-s...withdraws-his/

Why am I getting in line to take my money out of Bank of America? Why do I risk starting a run on Bank of America by withdrawing my money and presuming that many fellow depositors will read this and rush to withdraw too? Because they pay me zero interest. Thus, even an infinitesimal chance Bank of America will not repay me in full, whenever I ask, switches the cost-benefit conclusion from stay to flee.

They will not be able to return my money if:

•Many other depositors like you get in line before me. Banks today promise everyone that they can have their money back instantaneously, but the bank does not actually have enough money to pay everyone at once because they have lent most of it out to other people — 90 percent or more. Thus, banks are always at risk for runs where the depositors at the front of the line get their money back, but the depositors at the back of the line do not. Consider this image from a fully insured U.S. bank, IndyMac in California, just five years ago.



•Some of the investments of Bank of America go bust. Because Bank of America has loaned out the vast majority of depositors’ money, if even a small percentage of its loans go bust, the firm is at risk for bankruptcy. Leverage, combined with some bad investments, caused the failure of Lehman Brothers in 2008 and would have caused the failure of Bank of America, AIG, Goldman Sachs, Morgan Stanley, Merrill Lynch, Bear Stearns, and many more institutions in 2008 had the government not bailed them out.

In recent days, the chances for trouble at Bank of America have become more salient because of woes in the emerging markets, particularly Argentina, Turkey, Russia and China. The emerging market fears caused the Dow Jones Industrial Average to lose more than 500 points over the last week.

The market turmoil could threaten “BofA” with bankruptcy today as it did in 2008, and as banks have experienced again and again over time.

The FDIC currently has far less money in its fund than it has insured deposits: as of Sept. 1, about $41 billion in reserve against $6 trillion in insured deposits. (There are over $9 trillion on deposit at U.S. banks, by the way, so more than $3 trillion in deposits is completely uninsured.)

when the FDIC fund risks running dry, as it did in 2009, it can go back to other parts of the federal government for help. Remember that Congress voted against the TARP bailout in 2008 before it relented and finally voted for the bailout.

Thus, even insured depositors risk loss and/or delay in recovering their funds.

Bank of America and other big banks are fragile — and vulnerable to bank runs — because the Fed has set interest rates to zero. If a run gathers momentum, the government will take steps to stem it. But I am convinced they have limited ammunition and unlimited problems.

[tallguy]

Be afraid, be very afraid.

http://www.golemxiv.co.uk/2014/01/on...d-derivatives/

[cyu]

Be afraid, be very afraid.

http://www.golemxiv.co.uk/2014/01/on...d-derivatives/

Well, at least pro-capitalists should be afraid

[tallguy]

Well, at least pro-capitalists should be afraid

And everyone who has a pension or savings.....

But yes, in the long run, we all benefit from the whole stinking pile of debt ridden corruption collapsing.

Here's hoping

[cyu]

everyone who has a pension or savings

In some ways, yes - especially if the ruling class allows the money of the working class to be wiped out, while doing all they can to save the money of plutocrats (see also TARP / austerity).

However if the ruling class does not get their way, if large fortunes are wiped out, the result would be an equalization of economic power. Once plutocrats lose what gives them disproportionate power, then the working class will finally have room to breathe again.

But anyway, this might be of interest: https://web.archive.org/web/20010417...rants/yu1.html