REALITY CHECK - This thread is BS and FEARMONGERING (which goes over well on ATS, I realize)
The OP's source of the information "Silverdoctors" itself calls this "version" of Bernanke's comments a "translation". The "truth" isn't available,
only their opinion. See below for the REALITY.
The Op is parotting what the source said, and the source (Silverdoctors) is clearly trying to inflame emotion in its readership. This "translation" of
Mr. Bernanke's comments is nonsense.
Here are excerpts from yesterday's Q&A following Mr. Bernanke's statement, related to the Cyprus Bank Topic, from the Wall Street Journal's blog
(reporter Sudeep Reddy) of the Q&A session:
1:49 pm Cyprus: It took 15 minutes to get to Cyprus and its reverberations, but we're there.
"It's a difficult situation in Cyprus," Bernanke says, outlining its many problems and the uncertainty about its implications for others in Europe
after Cypriot lawmakers rejected a bail-in plan Tuesday.
"The vote failed and the markets are up today. I don't think the impact has been enormous. ... We hope the Europeans will come up with an efficient
and equitable solution." The Fed is monitoring it, but so far doesn't see much risk to the U.S., he says.
2:16 pm Back to Cyprus: As a central banker, do you think it was appropriate or fair to impose a levy on every bank deposit, even the insured ones?
"I know they're grappling with a very difficult problem," Bernanke says. "I think the issue they face is there's a pretty big financial hole" -- a
fiscal issue and a bank restructuring issue. "I think everyone understands there are certain risks with that" beyond hitting lower-income people and
setting a precedent.
"There's probably no easy way to do it. We're going to keep monitoring that. But I don't envy them" with "that particular challenge."
2:21 pm The problems there don't have direct implications for the U.S. and would only become a problem if the runs became contagious, Bernanke says.
Could a bank levy occur here? The FDIC created bank insurance in 1934 and has never lost a dime of anyone's insured deposits, Bernanke notes. "During
the crisis the response of the government was in fact to increase the level," he says, adding that such a levy is "extremely unlikely in the United
So, the headline of this thread, and the source of the "translation" are BS. Although, the wild-eyed responses are very entertaining - thanks for
edit on 21-3-2013 by surfin4it because: clarified wording