On Thursday, social media posts displayed video footage of Bank of America clients anxiously waiting in line at the bank for information about their bank accounts, which had been lowered by substantial quantities of money without any reason.
The film sparked concerns that the United States is about to experience a financial disaster.
One Independent Media outlet stated that Americans must prepare for a ‘bail in’ and provided a laundry list of things Americans must consider as we approach very turbulent times.
“Bail-ins are where they just take some money from all bank accounts on file because it’s needed to help the “greater good” according to We Love Trump, who reported on the shocking web footage on Thursday and provided context:
According to Investopedia, bail-ins happened ten years ago.
A bail-in occurs when a bank collects money from its clients in order to avoid bankruptcy. This is distinct from a bailout, in which the government provides funds to a bank to help it remain operational.
In 2013, Cyprus had a significant crisis. Its banks were in risk of failing because they had suffered significant financial losses. The Cypriot government and the European Union (EU) decided to implement a bail-in.
This meant that Cypriot bank clients had to part with a portion of their funds in order to keep the banks operating. People with money in the bank were required to surrender a portion of it. This got some individuals quite angry.
The EU and the government of Cyprus resolved that those with bank accounts containing less than 100,000 Euros would not lose money. Those with over 100,000 Euros in their bank accounts, however, would lose a portion of it.
People were first informed that they would lose 6.75 percent of their bank balances. The rate was later reduced to 9.9%. This meant that a person with a bank balance of 100,000 euros would lose 9,900 euros.
This generated several complications for the citizens of Cyprus. Some individuals were unable to pay their expenses due to their massive financial losses. Some small enterprises were unable to remain operating due to insufficient funds.
The EU and the government of Cyprus stated that they implemented the bail-in to assist keep the banks operating and prevent a major financial catastrophe in Cyprus. However, not everyone agreed with this. They believed that the government should have found an alternative method to assist the banks without taxing the people. CONTINUE READING…