What Is a Bail-In?
A bail-in provides relief to a financial institution on the brink of failure by requiring the cancellation of debts owed to creditors and depositors. A bail-in is the opposite of a bailout, which involves the rescue of a financial institution by external parties, typically governments, using taxpayers’ money for funding.
WHEN YOU PUT YOUR MONEY IN THE BANK…YOU ARE A “CREDITOR”
This is the bankers saying it.
Now, it’s possible that this contingency plan will not be enacted. We may get within days of it like they did in Greece. But the fact that strategies are being put into place to do so should be a giant, clanging warning bell right in your ear.
What can you do?
I have said this again and again: it’s time to start looking at options other than a savings account or retirement fund. This is not just something that people with more than $250K need to acknowledge. There’s not enough insurance money to cover any of us. ONLY 1.26% OF THAT MONEY EXISTS IN A FUND.