The Fed is doing the only thing they know how to do…FLOOD THE SYSTEM WITH MONEY AND CRUSH ALL ALTERNATIVES (gold, silver & cryptos). Note: do not buy ANYTHING if you can’t get immediate delivery and you will likely be throwing your money away when it ALL comes down!…(read more)

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ALERT! Bank Bailouts Go VERTICAL!! (Bix Weir)

Bank bailouts have always been a contentious topic among economists and the general public. In recent times, a new twist has emerged, and it’s causing concern among those who closely follow the financial system. Bix Weir, a prominent analyst and writer, has sounded the alarm in his latest article titled “ALERT! Bank Bailouts Go VERTICAL!!”, shedding light on an alarming trend that could have devastating consequences.

Traditionally, bank bailouts occur in a horizontal manner, where struggling banks receive financial help from government institutions or are merged with stronger banks to prevent a collapse. However, Weir argues that the concept of a vertical bank bailout is on the rise, posing serious risks to the stability of the financial system.

So what exactly is a vertical bank bailout? Weir explains that it involves a scenario where troubled banks are essentially “bailed out” by their own depositors. In other words, the money that individuals have deposited in these banks can be directly utilized to prevent a potential collapse. This is a distressing notion for savers, who expect their money to be safe within the banking system.

Weir points out that this vertical bailout strategy has its roots in the 2008 financial crisis. During that period, major banks were deemed “too big to fail,” and the government stepped in to rescue them. However, the problem persisted as banks became even larger and more interconnected. This led to the rise of the concept of a bail-in, where losses are imposed on a bank’s shareholders, creditors, and even depositors, rather than relying solely on government funds.

The bail-in concept gained significant traction with the implementation of new regulations, such as the Dodd-Frank Act in the United States. These regulations paved the way for banks to use depositor funds to recapitalize and stabilize their balance sheets, essentially shifting the burden of saving failing banks from taxpayers to depositors themselves.

Weir warns that the trend towards vertical bank bailouts is accelerating and could become much more commonplace in the near future. This is especially concerning as banks face increasingly risky and speculative activities, potentially leading to more frequent failures.

The implications of such a system are far-reaching. Individuals who have responsibly saved their hard-earned money risk losing it overnight if their bank faces insolvency. This erodes trust in the financial system and undermines confidence in the banking sector.

Weir emphasizes the need for individuals to be aware of this worrying trend and urges them to take proactive steps to safeguard their investments and savings. Diversifying holdings across different banks and exploring alternative investment options beyond traditional banking channels are some of the measures he suggests.

In conclusion, Bix Weir’s alert on the rise of vertical bank bailouts is an important wake-up call for individuals and investors alike. The notion of banks using depositor funds to prevent their own collapse is alarming and should prompt a reevaluation of how we perceive and engage with the financial system. Being informed and prepared is key to protecting one’s hard-earned money in these uncertain times.