Why Your Bank Deposits May Be at Risk
Another financial crisis will bring widespread bank failures
December 8, 2015
Elliott Wave International’s July issue of The Elliott Wave Theorist reminds us why bank depositors need to prepare for the worst before a nation’s financial system is gripped by crisis:
You can’t wait until a monetary system collapses to protect your wealth. Just ask the Greeks. One day they were free to access all their savings at banks, and the next day the banks’ doors were closed. Depositors’ only relief was a dispensation allowing depositors to withdraw up to 60 euros a day.
You may be tempted to think that such a situation is unlikely to occur in Europe’s advanced economies like France, Great Britain and Germany.But another severe economic downturn could bring historic bank failures.
Why? Because the banking system never fully recovered from the 2007-2009 financial crisis.
Here’s a chart of three of Europe’s largest banks:
You can see that the stock prices of all three banks continue to languish.
Here are some recent news items about major European banks:
- Standard Chartered Bank plans to cut 15,000 jobs and “reported a pretax loss of $139 million in the third quarter.” — (New York Times, Nov. 3)
- “Royal Bank of Scotland Group Plc, Britain’s biggest government-owned lender, said profit fell by more than half in the third-quarter.” — (Bloomberg, Oct. 30)
- “Deutsche Bank to shed 35,000 jobs, exit 10 countries” — (CNBC, Oct. 29)
- “Pre-tax earnings at Credit Suisse’s private banking and wealth management unit plunged 31%.” — (The Guardian, Oct. 21)
In the U.S., Reuters reports that the falling value of loans to junk-rated companies could be a negative factor in fourth-quarter earnings for banks.
Bankers must also grapple with the high cost of onerous regulations and huge fines imposed by the government.
In 2014 alone, U.S. and European banks paid nearly $65 billion in penalties and fines, about 40% greater than 2013, according to the Wall Street Journal. Billions in bank fines have continued into 2015.
Every bank depositor should read Elliott Wave International’s (EWI) FREE new special report: “The Secret New Government Tax — UNVEILED.”
EWI’s U.S. and European Financial Forecast editors have teamed up to show you how the government is strong-arming big banks and squeezing out depositors’ hard-earned money — under the guise of keeping it safe. See what the government is up to and take an important step toward making your money safer.
Financial Crisis – Fundamental Causes
If you’re even remotely worried about what the government is doing to combat the financial crisis, please continue reading.
When I watched the free 30-minute video I’m about to share with you, its insights and independent thinking took me aback. It was so compelling that I’m now eager to share it with you.
In December 2008, our friend the famed financial analyst Robert Prechter, Jr., spoke before his state legislature. The House and Senate Economic Committee had invited him to give his unique outlook on real estate, financial markets and the economy and to share with them his ideas for what – if anything – a governing body should and shouldn’t do to make its state a more attractive place in which to live.
Since then, the video – complete with Prechter’s eye-opening charts – has been passed from friend to friend and has also reached some very influential people – perhaps even in your state government.
Prechter’s insights are anything but conventional; in truth, some could be considered downright radical. But, as Prechter says in the presentation you’re about to watch: Today’s environment is anything but typical. An atypical problem calls for atypical solutions.
If you believe the government might be trying to do too much, but you’re concerned that doing nothing at all is also a flawed approach, you should watch this insightful video right away.
If you agree with Prechter’s insights, go one step further – pass them on.
Understand the Investing Environment
To time the market, you must understand what is going on. Here is some eye opening dose of reality.
Elliott Wave International (EWI), the world’s largest market forecasting firm, has re-released Bob Prechter’s 10-page market letter, FREE!
Downloaded thousands of times in its original launch, EWI has put it back online for a limited time!
Wall Street Legend and best-selling author Bob Prechter reveals 28 answers to questions you may not know to ask and the government definitely doesn’t want you to know.
You’ll read blunt commentary and sharp analysis that reveals the truth about what’s really going on in the U.S. financial markets, in Congress, and at your very own bank.
As the U.S. government pulls a sleight-of-hand trick on the unsuspecting public, you can break the cycle of misinformation by reading this 10-page report.
Warning: Prechter’s answers to these questions may shock you.
- What impact did the so-called “stimulus package” have on the U.S. economy?
- In an economic depression, will pension funds keep most retired Americans afloat?
- Who really benefits when the government props up Fannie Mae and Freddie Mac, and what’s the fraud behind the idea of “too important” to fail?
- Who does the government consider to be homeowners: you and your neighbors, or the banks that hold the deeds?
- Who really endorsed the emergency Housing Act – and who will be hurt by it?
- Can the Fed keep making loans to banks forever?
- Is it actually against the law in some states to warn people of potentially dangerous banks?
- And many more!
Don’t wait! Get this free report that readers are calling “a wake up call to lots of Americans.”
About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.
What is an individual to do?
Before it became the worst credit crisis since the Great Depression, the credit crisis used to be an arcane topic discussed only in financial publications. Now, it’s on every computer, television screen, and front page of every newspaper in the world.
It may have you worried about what you can do to get through it with your personal finances still intact. What can you do about it?
Elliott Wave International, the world’s largest market forecasting firm, put together this free resource featuring 15 hand-picked reports and videos that will show you:
- How we got into this mess
- How to survive and prosper from it
- When you can expect the crisis to end
The detailed analysis covers topics worrying you and millions (if not billions) of other people around the world who are learning more and more about the dangers of the Credit Crisis every day.
Here are just 5 of the 15 topics covered:
- How Do I Find a Safe Bank?
- What Happens During a Credit Implosion?
- How Do I Ride Out this Crisis?
- What If You Can’t Sell Your House?
- Buy & Hold or Sell & Fold?
Free Report: Discover the Top 100 Safest U.S. Banks
Earlier this year, Elliott Wave International (EWI) released this free bank safety report and it quickly became one of the most popular reports they have ever offered with thousands of downloads.
Now EWI is re-releasing the report with even more information, featuring 10 pages of must-read tips on choosing a safe bank and protecting your money.
Get expert, informed, and independent information on what you can do to protect your money, right now.
Discover the Top 100 Safest U.S. Banks Includes:
- The Top 100 Safest U.S. banks (two for each state)
- How you can choose a safe bank.
- Five incredibly risky banking conditions.
- Why even the FDIC can’t really guarantee your money.
- Tips on international safe banking.
- Lending vs. banking (the critical difference).
- Why banks will not lend, even after the government bailout
Informative video: Economic Crisis Continues – Robert Prechter, December 2009:
Informative video: Robert Prechter, October 2007 at Bloomberg:
Robert Prechter, February 2009 at Bloomberg:
What is the fundamental cause of the Financial Crisis?
Ellen Brown explains how the current banking system works and how it causes inflation and deflation.
Robert Prechter explained how this system would crash in his 2002 bestseller book “Conquer the Crash”.