Looking at the bubbles that have ballooned since 2008 in the bond and derivatives markets, the next bust is practically inevitable. At the same time, further bailouts seem politically untenable, which leads us to the next big heist in the name of protecting the global casino: the bail-in. During the mid-November G20 summit in Brisbane, leaders of most the world’s biggest economies passed the “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution.” Besides being more than a mouthful of seemingly unrelated words, this document enshrines bail-ins for these countries with a unique twist: they will not only go after depositor’s money but also pension fund investors (major holders of now “bail-inable bonds”) in the event of the collapse of another Too Big to Fail institution.
Posted on: Fri, 26 Dec 2014 17:35:59 +0000
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