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Recent
financial woes reshaped the U.S. economy, but big companies are making big
deals again, especially in health care, technology and the media
industry. Monday was a tipping point following the acquisition between
two big pharmaceutical companies and then with another multi-billion dollar
takeover between two oil field service companies. It's the biggest year on the
books since 2000. The conditions are ideal, with borrowing costs low and share
prices rising, and because deals don't happen unless people are feeling good,
it seems that corporate leaders are optimistic with the times, with foresight
on growth. [more...]
On
November 16, the world of banking and money was officially flipped upside down
because of actions taken by the G-20 nations meeting "down under" in
Brisbane, Australia. People deposit their money in banks for safety. But on November
16, this gathering of 35 national leaders turned your bank into one of the most
unsafe places to put your money. Without warning, these G-20 leaders agreed
that the money in your bank account can be seized to pay bank debts. And some
of these leaders - especially President Barack Obama - have already begun
imposing billions of dollars in regulatory penalties on banks to squeeze money
out of them to grow their governments. [more...]
In
the November 10 London Telegraph,
James Titcomb reports that the chairman of the international Financial
Stability Board Mark Carney, Governor of the Bank of England, reveals how
future bank problems will be handled. His plan is that future problems in banks
that are "too big to fail" will never again end in government
bailouts using taxpayer money. Instead, as Craig Smith and I explained in our
latest book, Don't Bank On
It! The Unsafe World of 21st Century Banking, governments will employ
"bail ins" forcing what he calls "creditors" of various
kinds to bear banks' losses.
This
seemingly good news, however, conveniently neglects to reveal who all these "creditors"
are. It turns out that they include mere bank employees, whose income and
pensions may get a "haircut" to cover bank shortfalls. Those stuck
paying for bank shortcomings may also include customers - depositors who do not
understand that when they opened a bank account, they were in effect lending
their money to a bank and getting in return only an IOU. [more...]
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