London Stock Exchange doing the same thing as MF Global, but openly

Banks in Italy Find an Unusual Liquidity Lifeline

The London Stock Exchange is becoming the lender of last resort for many banks in Italy as concerns over the country’s debt levels squeeze liquidity out of the Italian financial market.

With cash increasingly hard to come by, Italy’s banks are turning to CC&G, the L.S.E’s Italian clearinghouse, for short-term lending. That includes some of the country’s largest financial institutions, including Unicredit and Mediobanca, according to a person close to the situation.

The money, which comes from collateral that traders must put up to complete financial transactions, is deposited with the banks to cover shortfalls in liquidity. CC&G earns a profit by charging banks interest on the money that they borrow.

They are crazy. CC&G is doing EXACTLY what MF Global was doing...(loaning out margin deposits and free cash in customer accounts) but on an even BIGGER SCALE... and OPENLY. If they go under, just like MF Global, all that money in there is GONE... money which Italian banks don't have to begin with.

And you bet they are not the only ones doing this. I bet the same thing is happening in Canada, the US and most of Europe. That means that right now, your bank or even credit union is doing this kind of stuff. Taking the money you have in the bank you are not using, your 401k, IRA, ANYTHING they can get their hands on and loaning it for short term to big banks (which are bankrupt and making bad bets).

So the next time ``a big one`` goes down, it's gonna be epic.

so what happens if the lights go out? like...

say you pull all of your cash out now and the systems crashes: your cash will be worthless, no?

and if you leave your money in and lose it, your money is worthless, no?

seems like this is the time to get rid of your money and buy stuff while it's worth something?

reply to post by ICEKOHLD

say you pull all of your cash out now and the systems crashes: your cash will be worthless, no?

At least you have cash on hand. But yeah.

and if you leave your money in and lose it, your money is worthless, no?

No, you don't have money anymore.

reply to post by Vitchilo


so then everyone should pull their cash out so that a) they have it and b) we can accelerate this whole process! the faster it crashes the faster we can build a new one.

Originally posted by ICEKOHLD
reply to post by Vitchilo

 

so then everyone should pull their cash out so that a) they have it and b) we can accelerate this whole process! the faster it crashes the faster we can build a new one.

Or turn it into gold-silver, ammo, guns, food, land... whatever they have to take from you physically and they cannot steal from you using cheap accounting tricks.

Originally posted by ICEKOHLD
reply to post by Vitchilo

 

the faster it crashes the faster we can build a new one.

Hm..what do you mean with "WE"? I would say "they". And maybe this was the goal in the first place!

Bingo!

We have a winner!