Italian Bank Bailout During Holidays

Banks are teetering:

Over the Christmas holidays, when no one was supposed to pay attention, and when the markets were closed, the bailout costs of Monte dei Paschi di Siena, the third largest bank in Italy, and the center of the Italian banking crisis, suddenly jumped by 75% to €8.8 billion ($9.2 billion)!

Just how immense the black hole inside of a bank really is remains unknown until the bank collapses entirely and the pieces are sorted out. No one wants to know, especially not bank regulators. But when banks are teetering, and a bank bailout, or rather a bondholder bailout is being discussed, the aspects of that hole begin to emerge, and the hole keeps getting bigger the longer someone looks at it.

Earlier this year, the ECB’s stress tests of 51 large European banks determined that Monte dei Paschi was the shakiest among them. The ECB gave the bank until the end of 2016 to raise enough capital or contemplate the prospect of being wound down.

If you ever look at Ponzi schemes, this is exactly what they look like. What they have done here is not secure everyone’s investment, but rather they have made sure the bank can continue to pay out just enough funds to keep investors/depositors thinking their investment/deposit is safe.

The bank/scammer takes people’s money. They promise them something for it, like keeping it safe, and growing it with interest. Each month they send a statement which tells the “investor” how all of their money is perfectly safe, how much it has earned, and how the investor could access it whenever they want.

Meanwhile, behind the scenes, the bank/scammer has given the money out to others, sometimes hoping for some ridiculous return, sometimes, wasting it on something that will never yield any profit. As the money is thrown away, the bank/scammers never let it be known that they do not have the money. Statements go out saying everything is fine. Dividends/profits are paid as needed from the saving of others. And all along, the system is slowing declining, only to be revealed that first time there isn’t enough money to cover all the demands to withdraw from it.

Already in the US, we are seeing banks begin to restrict how much cash you can pull out. Governments are trying to limit how much wealth you can move around. And in the US if you travel with too much cash, the police are empowered to seize it, under the pretense of assuming it was involved in crime. The system appears to actively be discouraging the investors in this Ponzi scheme from withdrawing their investments and holding them themselves, before it all goes down.

And it is all coming down.

Tell others about r/K Theory, because it shouldn’t be the K’s leaving their money in until it all comes down