Banks: Money for Nothing and Our Checks for Free

Just when I think banks have done about as much as possible to destroy the American middle class I read something like this:

“It Can Happen Here: The Confiscation Scheme Planned For U.S. And U.K. Depositors”

If you don’t want to read the whole thing, here’s the core:

Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay (see here and here). But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price? Most people keep a deposit account so they can have ready cash to pay the bills.”

Adam Smith warned about banks and bankers. Few listened to him.

Lack of attentiveness and failure to read the fine print, both problems of the American middle class–

Cassandra

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