Monday, July 21, 2014

On cusp of German bail-in vote, 50% of cities stand on verge of insolvency

On July 9, German legislators voted to approve bank bail-ins as the primary solution for re-capitalization the next time their financial system experiences a collapse or major crisis.  Thus following in the footsteps of the Cyprus Experiment, which saw depositors lose upwards of 60% of the money they thought was safely protected in their banks and financial institutions, German depositors, not the taxpayers, are now on the hook to pay for a bank’s corruptness, risky bets, or bad decisions.

However, even this egregious new policy may pale in comparison to what is coming for the German state as it is now estimated that 50% of all municipal governments within the chief Eurozone nation are underwater, and on the brink of insolvency and bankruptcy.

Read more on this article here...


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