Customers could recover $20,000 if Australian bank collapses

[phoenix_gr]

"Money isn't everything - gold is. F**k T-bills! F**k blue chip stocks! F**k junk bonds! We've got the real deal! Money will always be paper, but gold will always be GOLD!"
-Darwin Mayflower, Hudson Hawk (movie with Bruce Willis )

If everyone did loose their money, the political party that is in power at the time will not be back in power for the next hundred years, APRA would be bent over a barrel and the rba will have some explaining to do.

Not that this is any concelation to any who lose money, and this event is not likely to happen any time soon, people are just **** scared because they hear sub prime in US, rising Interest Rates in Australia combined with ignorance as to what it all actually means and they run around like headless chooks.

 

[Trembling Hand]

Where do you think Insurance companies will get the money from though?

The MIGHTY US fed. From the age today,

"Ironically, were Opes a US broker its clients might have been better off. While Bear is the first big broker to blow up, and be bailed out, since the Great Depression, a plethora of small broking houses has hit the wall. Yet these are regulated by the Securities Investor Protection Corporation, which insures retail investors to the tune of $US500,000 ($A545,000) in the event of a broker defaulting."

 

[Temjin]

The banks are too big to fail. We have a technology so called the "Printing Press". When the force of deflation do come, all the Central Bank need to is to make $100,000,000,000,000.00 out of thin air by simply clicking a mouse button and hope it would solve the problem with massive inflation.

In the event that there is a bank failure and all deposits were guaranteed, that $20,000 wouldn't have worth the original purchasing power of $20,000 one had initially deposited due to the eroding power of inflation.

That's my opinion anyway by observing what the global central banks have been doing lately to "solve" the credit crisis.