---------- Forwarded message ---------- From: Michel Bauwens <[email protected]> Date: Sat, Jan 25, 2014 at 4:16 PM Subject: Re: Bank Run Fears Continue as Banks Restricts Large Cash Withdrawals To: Daryl Taylor <[email protected]> thanks! On Sat, Jan 25, 2014 at 4:04 PM, Daryl Taylor <[email protected]>wrote:
http://www.zerohedge.com/news/2014-01-24/bank-run-fears-continue-hsbc-restri...
*First come the restrictions, then the confiscations. *
"This is how it begins, with restricted access to bank balances and banks requiring justifications for withdrawals. See Cyprus in 2013, or worse, Argentina in 2001. The system does not regard your bank balance as your money. It is a liability the bank owes to you, which it may or may not be able to meet. Reserve requirements have been whittled away to virtually nothing, meaning that the bank could not satisfy even 1% of its deposit account liabilities if everyone decided to cash out at once. They restrict access in order to slow down the outward movement of money, but in doing so they generate fear that makes bank runs more likely. Once the psychology shifts, and it can do so on a dime, they're damned if they do and damned if they don't." *Nicole Foss*
-- P2P Foundation: http://p2pfoundation.net - http://blog.p2pfoundation.net <http://lists.ourproject.org/cgi-bin/mailman/listinfo/p2p-foundation>Updates: http://twitter.com/mbauwens; http://www.facebook.com/mbauwens #82 on the (En)Rich list: http://enrichlist.org/the-complete-list/ -- P2P Foundation: http://p2pfoundation.net - http://blog.p2pfoundation.net <http://lists.ourproject.org/cgi-bin/mailman/listinfo/p2p-foundation>Updates: http://twitter.com/mbauwens; http://www.facebook.com/mbauwens #82 on the (En)Rich list: http://enrichlist.org/the-complete-list/