Your money isn't yours!

[tjokie]

Global Uncertainty and Doubt
Today we are living in the most interconnected world in the history of mankind. What happens in one major country affects many others. We all know that economic cycles go up and down, yet this interconnectedness also puts us more at risk.

In 2008, these lows included failed banks which Western governments "bailed out." Will this happen again? It is unlikely, as most of those governments have since written into law that too-big-to-fail banks will no longer be bailed out by taxpayers.

The next time, "bail-in's" will be the solution. If this term is new to you, this is when depositors' funds are used to save the banks—deposits in checking and savings accounts like yours and mine. In 2013, the small European country of Cyprus experienced the first bail-in. Up to 60% of deposits were seized by bank regulators to bail out the bank and capital controls were imposed on all Cypriot banks for over a year. People did not burn down the banks, so governments know that people are likely to allow it to happen again.

Could this happen in the United States? The U.S., Canada, and the E.U. have all quietly passed bail-in laws over the past several years in anticipation of another bank failure. As for those bank insurance funds (like the FDIC), don't count on it. There isn't enough money in that fund to bail out depositors of even one too-big-to-fail bank.

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