TSXV:NORA.H - Post by User
Comment by
silver300on Apr 30, 2013 12:02am
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Post# 21317764
RE: RE: Why?
RE: RE: Why? Boflann, have you read page 144 of the recent Canadian Federal budget? Canada is not Cyprus when it comes to the weather but it is Cyprus when it comes to interwoven financial systems. Last I looked derivatives were still legal in Canada. Last I looked the Canadian Depository Insurance Corporation could not protect investors from more than a modest financial institution bankruptcy. Is Bank of Nova Scotia short a lot of silver?
Here is more info for the others, from LeMetropoleCafe.com:
Jesse at Jesse’s Café Americain then picked up the thread and pointed out that it is not just direct deposits that are at risk. The too-big-to-fail banks have commingled accounts in a web of debt that spreads globally. Stock brokerages keep their money market funds in overnight sweeps in TBTF banks, and many credit unions do their banking at large TBTF correspondent banks:
You say you have money in a pension fund and an IRA at XYZ bank? Oops, it is really on deposit in you-know-who's bank. You say you have money in a brokerage account? Oops, it is really being held overnight in their TBTF bank. Remember MF Global? Who can say how far the entanglements go? The current financial system and market structure is crazy with hidden risk, insider dealings, control frauds, and subtle dangers.