Bail-ins Are The New Black

Austria begins bailing in banks:

Entering into 2016, all members of the European Union (EU) were required by law to have bail-in legislation on their books in preparation for the next potential crisis that in previous times would have resulted in a taxpayer funded bailout…

And on April 10, it appears that these new rules have come not a moment too soon as Austria is to become the first European state to implement a bail-in as it induces the new policy on the failed Hypo Alpe Adria (bank), which is known today as the Heta Asset Resolution AG when it was nationalized by the Austrian government six years ago.

Initially, a haircut of 54% will be implemented against senior creditors that could take upwards of six years to finalize the process and payouts to the debt holders.

The significance of today’s bail-in act out of Austria is that it is the first of its kind in the Eurozone, and opens the door for future bailouts in a banking system that is extremely underfunded due to derivative and liquidity issues… Because now more than ever, it appears now that these new rules will be needed quickly for a financial crisis that could be just around the corner.

Tick Tock. Tick Tock. Resources are beginning to dry up everywhere. Already nations are not confident enough in their ability to acquire free resources to bail out banks with government funds. The thing is, in a debt fueled bubble, it won’t take much to scare borrowers into not lending, and once that kicks in, it will pop the bubble all at once.

Rabbits fear the K-selected environment as if it is death. As a result, there is no length they not go to in order to avoid its onset. This is problematic since the only way to avoid K-selection is to find a source of free resources, appropriate it, and provide it freely to the masses.

We will see a lot of this as time goes on. They will appropriate bank accounts, seize 401k’s, likely outlaw the procession of precious metals, forcing their sale to the government, and probably even force businesses to provide free services and resources to the government (for redistribution) in return for IOU’s. If they are unopposed, expect a rabbit free-for-all, in the most literal sense.

There are only two ways this can be avoided. One is a governmental collapse so swift it dissolves the federal government before it can implement these types of programs. The other is a populace so enraged and amygdala-stimulated that it is willing to fight violently if the rabbits implement such rules. You can only intimidate liberals terrified of K-selection with an impending onset of even worse K-selection you are about to trigger.

This will be the game for those competitive individuals who want to hold on to their wealth. The rabbits will try to use government to seize the wealth of the successful. Those successful individuals who amassed wealth prior to the collapse, and who want to still have it after the collapse, will need to figure out how to win that game. If they don’t they will begin anew after the collapse, as if they never had any success to begin with.