Its official no money to leave US after Nov.17th. Deposit will you can.
- snip - scan of doc from Chase -
Yup. Capital controls. Now I remember another big reason why Bitcoin grabbed my attention so forcefully back in 2011.
http://iranian.com/posts/view/post/22646I have to take exception with this article's:
"The bottom line is that banks think your money is their money and..."
The reason that banks think that is because it is true. Technically and legally.
Banks can use the money that the depositors gave them in more or less any way the see fit though they have to abide by certain restrictions. The reason Glass-Stegall was repealed was to relax those restrictions so they could gamble depositor's funds on derivatives at 50-1 leverage and such through their investment banking wing.
Worse yet, as I understand things (potentially tinfoil-hat things but maybe not) the derivatives counter-parties are top tier creditors and get made whole
before bank depositors in the event of a bankruptcy. The rational is that it halt a chain reaction of institutional failures...or so the story goes.
I've also heard that the way 'they' will get around the FDIC issue is to convert deposits into shares in the bank (as a non-option.) Then FDIC is under no obligation to save the 'investors' as the bank craters.
Who knows how much truth there is to this stuff. It seems entirely possible to me, however, and I actually have more confidence in Bitcoin than I do in my bank deposits and I hold more value in Bitcoin than I do in banks at this point. By a wide margin (though in fairness this is primarily attributable to the rise in BTC valuations.)