[P2P-F] Fwd: Bank Run Fears Continue as Banks Restricts Large Cash Withdrawals

[Michel Bauwens]

---------- Forwarded message ----------
From: Michel Bauwens <michel at p2pfoundation.net>
Date: Sat, Jan 25, 2014 at 4:16 PM
Subject: Re: Bank Run Fears Continue as Banks Restricts Large Cash
Withdrawals
To: Daryl Taylor <taylor.daryl.r at gmail.com>


thanks!


On Sat, Jan 25, 2014 at 4:04 PM, Daryl Taylor <taylor.daryl.r at gmail.com>wrote:

>
> http://www.zerohedge.com/news/2014-01-24/bank-run-fears-continue-hsbc-restricts-large-cash-withdrawals
>
> *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*
>
>


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