ECB Proposes End To Deposit Protection

“Savers should be looking for means in which they can keep their money within instant reach and their reach only.

Protect Your Savings With Gold: ECB Propose End To Deposit Protection:

– Protect Your Savings With Gold: ECB Propose End To Deposit Protection
– New ECB paper proposes ‘covered deposits’ should be replaced to allow for more flexibility
– Fear covered deposits may lead to a run on the banks
– Savers should be reminded that a bank’s word is never its bond and to reduce counterparty exposure
– Physical gold enable savers to stay out of banking system and reduce exposure to bail-ins

It is the ‘opinion of the European Central Bank‘ that the deposit protection scheme is no longer necessary:

‘covered deposits and claims under investor compensation schemes should be replaced by limited discretionary exemptions to be granted by the competent authority in order to retain a degree of flexibility.’

To translate the legalese jargon of the ECB bureaucrats this could mean that the current €100,000 (£85,000) deposit level currently protected in the event of a bail-in may soon be no more. But worry not fellow savers, as the ECB is fully aware of the uproar this may cause so they have been kind enough to propose that:

“…during a transitional period, depositors should have access to an appropriate amount of their covered deposits to cover the cost of living within five working days of a request.”

So that’s a relief, you’ll only need to wait five days for some ‘competent authority’ to deem what is an ‘appropriate amount’ of your own money for you to have access to in order eat, pay bills and get to work.

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Bitcoin Soars To Record High Above $8000 After Mugabe Speech

Bitcoin Soars To Record High Above $8000 After Mugabe Speech:

With Bitcoin trading at $13,499 on Golix, the chaotic environment in Zimbabwe has spread to the global price of the cryptocurrency driving it beyond $8000 for the first time in history as President Mugabe fails to resign in a national address following the nation’s coup.

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Apple Diversity Chief Forced Out After Saying White Men Can Also Be ‘Diverse’

Apple Diversity Chief Forced Out After Saying White Men Can Also Be ‘Diverse’:

Silicon Valley’s disdain for its mostly white, mostly male tech workforce has reached absurd new heights.

The New York Post is reporting that, after just six months on the job, Apple Diversity Chief Denise Young Smith, who was named vice president of diversity and inclusion in May, has resigned her post after making a “controversial” comment last month during a summit in Bogota, Colombia.

What was Young’s crime? She insinuated that “diversity” can still exist among a group of white men because of their different life experiences.

“There can be 12 white, blue-eyed, blond men in a room and they’re going to be diverse too because they’re going to bring a different life experience and life perspective to the conversation,” the inaugural diversity chief said.

“Diversity is the human experience,” she said, according to Quartz. “I get a little bit frustrated when diversity or the term diversity is tagged to the people of color, or the women, or the LGBT.”

That’s right: Young, who is – for the record – a black woman, has been forced out of Apple because her views on diversity were too inclusive.

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‘The Great Crash of 2018’ will start in bond market – strategist

‘The Great Crash of 2018’ will start in bond market – strategist:

Ten years after the 2008 financial crisis “very little has been really fixed,” and the next bubble is about to burst, says Bill Blain, a strategist at Mint Partners. According to Blain, this time the bond markets will trigger the mayhem.

Global stocks rose in value after the People’s Bank of China poured $47 billion into its financial system. That means “central banks have little to worry about in 2018 – if markets get fractious, just bung a load of money at them,” said Blain.

The 2008 crisis, which was about consumer debt, was triggered by mortgages. We still have consumer debt crisis problems ahead, warns Blain, adding the next financial crisis is likely to be in corporate debt.

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The Republican Tax Plan Is Very Swampy

The Republican Tax Plan Is Very Swampy:

Unsurprisingly, the Republican tax plan moving forward in the U.S. Congress and championed by Donald “Drain the Swamp” Trump, is very swampy. Today’s post will highlight a few examples.

First, let’s hear some of what billionaire fund manager Jeffrey Gundlach had to say. Via Bloomberg:

Jeffrey Gundlach, chief investment officer of DoubleLine Capital, said the congressional tax plan would expand the federal deficit and help a small fraction of the U.S. population, including hedge fund managers.

“I’m very disappointed incidentally about the shape of this tax cut that is being proposed,” Gundlach told a gathering of industry participants at the Drake Hotel in Chicago on Wednesday. “I am just appalled that we are going to continue to have a carried-interest scheme for hedge funds.”

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The Paradise Papers: How Ridiculously Easy It Is For The Rich To Avoid Taxes

The Paradise Papers: How Ridiculously Easy It Is For The Rich To Avoid Taxes:

A little too easy…

The revelations in the Paradise Papers followed quickly on the release of the Panama Papers (English majors please note the allusion to the Pentagon Papers).

Both of these Papers were revealed by an organization with the cumbersome name of The International Consortium of Independent Journals (ICIJ) — a group in need of a new name and a publicity agent. That name gives the impression of some mining cartel intent on keeping up the price of gold and diamonds.

To the contrary, it is a group of dedicated journalists who recognized that they could not honestly report on tax evasion when they were working for mainstream media. The media barons and major advertisers are prime users of the tax evasion system. So these journalists gave up successful and lucrative careers to dedicate themselves to exposing offshore tax fraud. The Panama and Paradise Papers are a tribute to their courage, sacrifice, and dedication.

H/t reader squodgy:

“Makes me feel all warm & happy inside.”

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Financial Times: Sell Bitcoin Because The Market Is About To Become “Civilized”

FYI.

Financial Times: Sell Bitcoin Because The Market Is About To Become “Civilized”:

On 31 October 2017, we discussed the announcement that the CME Group was responding to client interest and launching a Bitcoin Futures contract before the end of this year. CME stated that the contract would be cash settled based on the CME CF Bitcoin Reference rate, a once-a-day reference rate of the US dollar Bitcoin price at 4.00pm London time. In the run-up to the launch of the futures contract, the Financial Times has written a piece on the likely impact of futures trading on the Bitcoin price.

The title of the piece makes the FT’s view clear, “Prepare to bet against bitcoin as it becomes civilised”. We disagree with using the word “civilised” in this context (see below), but here is the FT’s take.

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Saudi Arabia Offers Arrested Royals A Deal: Your Freedom For Lots Of Cash

Saudi Arabia Offers Arrested Royals A Deal: Your Freedom For Lots Of Cash:

Saudi Arabia just introduced a 70% wealth tax. It did so in a most original way…

As we noted shortly after the Crown Prince’s purge of potential rivals within Saudi Arabia’s sprawling ruling family, while the dozens of arrests were made under the pretext of an “anti-corruption crackdown”, Mohammed bin Salman’s ulterior motive was something else entirely: Replenishing the Kingdom’s depleted foreign reserves, which have been hammered for the past three years by low oil prices, with some estimating that the current purge could potentially bring in up to $800 billion in proceeds.

Furthermore, the geopolitical turmoil unleashed by the unprecedented crackdown helped push oil prices higher, creating an ancillary benefit for both the kingdom’s rulers and the upcoming IPO of Aramco.

And, in the latest confirmation that the crackdown was all about cash, the Financial Times reports today that the Saudi government has offered the new occupants of the Riyadh Ritz-Carlton a way out…. and it’s going to cost them: In some cases, as much as 70% of their net worth.

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Bitcoin Surges Near $8000 Record Highs After Venezuela Default

Bitcoin Surges Near $8000 Record Highs After Venezuela Default:

We have already discussed the hyperbitcoinization of the Venezuelan economy and it appears, judging by the most recent surge, that tonight’s ‘official’ default events for the sovereign (and PDVSA) have triggered a further rush to the ‘safety’ of a decentralized store of wealth…

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Why America’s Retail Apocalypse Could Accelerate Even More In 2018

Why America’s Retail Apocalypse Could Accelerate Even More In 2018:

Is the retail apocalypse in the United States about to go to a whole new level?  That is a frightening thing to consider, because the truth is that things are already quite bad.  We have already shattered the all-time record for store closings in a single year and we still have the rest of November and December to go.  Unfortunately, it truly does appear that things will get even worse in 2018, because a tremendous amount of high-yield retail debt is coming due next year.  In fact, Bloomberg is reporting that the amount of high-yield retail debt that will mature next year is approximately 19 times larger than the amount that matured this year…

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What the Heck’s Going on With Used Cars and Trucks?

What the Heck’s Going on With Used Cars and Trucks?

H/t reader squodgy:

“Affordable and versatile used low mileage Pickup utility vehicles dominate the buoyant second hand car market….seems more people are thinking sensibly than we thought.”

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Amazon Says It’s “Almost Ready” To Get 1,000s Of Grocery Store Cashiers Fired

Amazon Says It’s “Almost Ready” To Get 1,000s Of Grocery Store Cashiers Fired:

There are roughly 40,000 grocery stores sprinkled around the U.S. that employee some 3.5 million people…well, at least for now.

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Millions Of Millennials Could Be Trading Sex For Their Next Debt Payment – Here’s How

Millions Of Millennials Could Be Trading Sex For Their Next Debt Payment – Here’s How:

As the storm clouds of peak stupidity gather over the heads of the millennial generation who were conned by banks, government, and universities to take out excessive amounts of leverage in auto loans, credit cards, and student debt; millions have flocked to a new website seeking ‘Sugar Daddies’ and or even ‘Sugar Mommies’ to pay off their debt amid an economic environment where wage growth remains non-existent.

Today’s real simple get-out-of-debt option for the broke college/post college millennial is through an unconventional dating website called SeekingArrangement.com.

In 2016, the website identified some 2.5 million college students who turned to the site in an act of desperation to find a ‘Sugar Daddy’ or even a ‘Sugar Mommy’ in exchange of personal time for straight cash.

The website’s mission is to “delivers a new way for relationships to form and grow. Sugar Babies and Sugar Daddies or Mommas both get what they want, when they want it”.

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