Cyprus and Canada beginning to rhyme...

Thanks. Im not suprised. Im just suprised about it being so soon.

Just a heads up to those reading. This is why we are only in Credit Unions. They are just as regulated as the Too Big To Fails but make no gambeling investments. They may still "holiday" if the Gov requires them to...but the cascading bank failures would hit them LAST giving you a (potencial) bit of extra time to pull your funds.(no garentees though) Just My 2 cents worth...that dissapeared due to inflation

Your faith in Credit Unions may be misplaced. As you know, Canada uses fractional reserve banking for money creation, that means that if you deposit $1000 in your account, the bank automatically will loan out 90% ($900) of that $1000, and only needs to have 10% (or a fraction) of that $1000 in "reserve". In turn the $900 that was loaned out and redeposited can and will again be loaned out but 10% of that must be in "reserve" and 90% or $810 of that can be loaned out, then $729, and so on and so on until the original $1000 deposit has mushroomed into $10,000 registered under the asset column in the books, yet only $1000 was deposited. It works great....until someone defaults on their loan! That's why if there is a run on banks, there isn't enough money to pay the depositors. That's how money is created, it is "loaned" into existence.

Canadian Banks (not credit unions or brokerage houses) are said to have deposit insurance of $100,000 per account and this is through CDIC (Canadian Deposit Insurance Corporation). They guarantee your cash deposit up to $100K, however if you look at their audit, you will find that they only have enough money to pay out an incredible .33% of all bank deposits in Canada, which were estimated to be $590 Billion in 2010! At best that turns out to be a mere $1.95 billion in payout potential (that is if its all liquid). Now apparently they can get an extra $17 Billion from Parliament, but that still only makes $18.95 Billion to cover $590 Billion. Do you see the problem here? If CDIC ever goes to Parliament and asks for more money, I think we would have a whole other set of problems to worry about.

BC Credit Unions are covered by CUDIC (Credit Union Deposit Insurance Corporation). They also claim to cover all your cash deposits. The KPMG Audit of March 2012 stated that CUDIC assets were $375,000,000. If you look at Vancity only, they have 500,000 members with published assets of $16 Billion. If CUDIC needed to cover the hypothetical collapse of Vancity, (no more $16 billion) the insurance payout would only be $750 per person for each of their members. That would wipe out CUDIC, and that would be for only one collapsed credit union. Do you feel safe now? What if all the credit unions in BC were to fail? Yikes! You may say "but what about Vancity's remaining assets to pay their depositors"? I say "Don't forget about the Fractional Reserve Banking example above"!

Here is a good exercise. Walk into any bank you have an account with and ask to withdraw $10,000.00 in cash, not a cashiers check, but real cash. See what happens! Then imagine what would happen WTSHTF, or there is any question about the solvency of a particular bank or credit union!

It's no longer about trying to squeeze a feeble .25% or .5% interest from a bank, it's all about capital preservation.

You are missing my point. Everything you have posted is true and many people dont know this. I do. Deposit Insurance is smoke and mirrors. My point is that if CBIC or RBC makes a bad bet and spent weeks of fraud covering their assets, that magic day comes when you here on the news that " Today. Staff Members for ( Insert A$$hole bank here) were escorted off the premisiss by company security shortly after the public doors failed to open. The RCMP and banking regulators are making preliminary....yada yada" . We've recently heard this story before in 2008. You will never know wich of the other banks are holding the same toxic assets...but you can probably guarantee Credit Unions will have the smallest connection. As a cascading tumbling of banks beggins to happen, luckily you are parked with the last domino. This MAY buy you an extra few days or weeks to get cash in your pocket.Wile every one is wondering why their debit card isnt working, YOU know exactly what is happenning...wile most are in complete denial and ignorance, you calmly drive down to the credit union and take AS MUCH AS THEY WILL LET YOU and calmly start the paperwork for as much as you can get as soon as you can get it. You can always return it later if you choose.
There may also be no warning. This is just hedging my bets. 100 bucks extra in pocket is better than Zero extra dollars.
In similar fashion, depending on the severity of the crissis, Wile every one is stripping grociery store shelves...Ill be casually walking through the empty co-op animal feed store to drop my extra cash

I agree with you phrase...Deposit Insurance is smoke and mirrors. It's there to try to keep the lid on the simmering pot, soon to boil over. Its there to appease the "sheeple" I find it troubling that so many people are lethargic when it comes to their money. They seem to be more interested in what Kim Kardashian (sic) is wearing, or who is on Dancing with the Stars. Glad to see you have a strong voice and a keen eye on yours!

Thanks. We understand that we will lose money but have covered enough other bases and we have psycologicaly prepared ourselves to just write that off and move on. Any extra we can get is just cream.

Lets take this opertunity to talk to others reading this post about other last minit upgrades. The feed store is my personal one but another that BrooklynPrepper pointed out is Small Independant Mom and Pop dollar stores. They may actualy stay open after StupourStore has dropped the security gates. The ones where its the owner that is at the till or stocking shelves. Those stores that during a power failure just light up a colman and take cash. Does anyone else have any Last To Close or Generally Ignored options if you are wanting to "dump" cash...or you just remembered some prep you had been putting off.

OK. This is where I have to buck up, be a man and make a public confession.....LOL.Its actually my Wife that is paper pushing, number crunching one, with a hateon for the banks and obsessivly determined to not give them a penny. Im just the guy that sees how things go wrong and who is lieing and what can destroy us. I tell her what things are going to fail and ocasionally she listens...reworking the number crunching pile of papers. Occasionaly I even listen to her. Her savy got us a farm and a second house. My savy told her to get out of that house right f***** now or all is lost. She listened. It took over a year to sell as we kept dropping the price. We came out of it with 70 thousand less than we had earmarked for preps...70 thousand...but we still got out on top. She was traumatised. A year and a half later she is going," Thank god we got out of that house in time" as she has watched the numbers drop. Its got alot further to go. Last night I was at an event where the woman across the table was expaining why she had to keep the rents high on her apartment building to cover the payments even though there are all these retal spots that arent filled. I didnt have the heart to tell her that I was looking at a dead woman. Her building was already lost and she just wont be able to accept it until she is in the street.

😉

Jeff Nielson comments on the Cyprus theft:

http://www.bullionbullscanada.com/intl-commentary/26104-bail-ins-are-fraudulent

RU

Good article.

So, any expert opinions??

Pay off your debt and work only in cash that you hide in your matteress. So, if the banks crash you still have your cash.

OR.

Forget totally about cash. Use credit until the crash and then the banks, if they are ever to recover, they will have a vested interest in keeping you healthy as you owe them money.

Just a question.

Mountainman.

Im far from an expert or psychic but I will give my thought. A dept is not free money that the bank wants back. Its a revenue stream for them. You are an Asset to them and in a bank crash, like a pimp selling a ho to another pimp, they will sell your debt to another pimp. The next big problem is, as usually happens when a bank fails, is that they "Call In" your morgage giving you a very short window to either fully pay off your house,"Pluss fees" or find another morgage broker (In a crash, consider the worst case preditory lenders you may have no option but to use). (Take an even worse case senario...a local wannabe tyrant that wants to be king and buys all those depts, or even a forein bank, that hire mercinaries as collectors and you are the new serf in perpetual payment). Lets be honest here. If you are in dept, you are already a surf even though at the moment, it a guilded cage. Some may disagree, but I say, better to be poor but a free man than afford a trophy wife and be a slave.
The next issue is that here in canada (alberta is the only ecception but expect that to change when the chips are down) you can not walk away from your morgage if it becomes a toxic asset(worth less than the morgage). The bank will sell your house then come after you to pay off any "expected" money(profit) they didnt get back.....as well as any 'FEES' that they add on for their trouble.
Looking at the other things that happened during the housing crissis in the states will be a wakeup call. I also expect a return of Depters Prison...."for our own good" to "controle the chaos"....but it will be slipped in other some other type of name like how hyper inflation is now called quantitative easing.
RIGHT NOW the Boomers that were expecting to retire by selling there houses and assets to gen X, Y and millenials (ha) are in denial that housing and tax revinue will drop into the toilet. I was at the local "Ecconomic Action Plan" and the government knows this is coming. The rest of the people in the room were in complete denial even though the Talking head told it to them strait up at the begginning. I,peronaly would expect house costs to drop 90% befor this is done. Thats the SHTF situation at hand. There is an old eastern saying, "When Blood is in the street...buy realestate"

Well Cernonnos5 I ususally agree with much that you say but not this time. I would absolutely have to say you are way out in left field with those remarks. If you have a mortgage I suggest you read the fine print and the terms and conditions carefully. Secondly debtors' prisons, come on really. Real estate to drop 90% of its value? I think that whole discussion belongs in the fringe section!

There may be some foreclosures as the economy tanks, there may be a substantial drip in real estate prices but your examples are way to extreme and go beyond scaremongering.

Hey, Im fine agreeing to disagree. We're good...and its a long view. Im not expecting this tommorow....then again, a month ago, did anyone expect that our good, responsible conservative banks and government would institute taking depositers money as the new policy. Strangely, about two years ago, I had the same concept rolling around in my spacy noggin that some kind of retirement savings confiscation was a possibility when considering our unpayable debt and the demigraphic bubble.
Now we took a 70 thousand dollar loss from "Fair Market Value" in a microcosm market on our previous house. Our market was desighned as a retirement destination...with big profits to be made...but low and behold, the big city retireese now cant afford to retire and they cant sell their assets in the city. Mrs C5 just checked the market in that area and all of the houses are for sale at that same market price....but low and behold, nothing is selling. I can only describe this nebulous breath holding in the general public in terms like 'The Flux'. I wish I had a more concrete description of it. Its denial but its something more I cant put a name to. Normalicy Bias isnt even right. Its something more, almost pathological. Sure debters prison is a streatch but you are starting to see that in the states as people are starting to be put in jail because they diddnt pay a court apointed payment as crediters use the legal system. I think the mentality is that if you do it to a few people you can scare the rest into submission. As a subnote, we also paid a HUGE penelty for getting out of our morgage early and not transfering to a new morgage on another house. We didnt see that one coming.
As for the fringe part. Alot of unfringe people are telling you to get out of your big home and get into a smaller home at the moment. Well, Im off to a lecture on "The biology of consumerism" and its connection to primative man.

Here. I think this will really help everyone understand where it is I am coming from and how it relates to your assets.
http://www.peakprosperity.com/video/231/playlist/153/chapter-14-assets-demographics Its alittle dull and very unfringe. No dramatic background music or secret government conspiracies. Just the Why its happening

And hey, It was a great lecture Im back from. It was more on mating biology. Ive always gotten by on "peacocking" thus my other post but, ICRCC, you will be happy to know, that your jacked up 4x4 is actually increasing your testasterone production. A pimped out rifle may make a beter man after all.