With inequality rising and the middle class getting crushed, you would think that bankers would be the last group of people to get any more government help.
But in an example of how rigged the system is, EU banks are now asking for more bailouts with taxpayer money. The head of the German Deutsche Bank is blaming Brexit and troubles in Italy for his bank’s problems, just another excuse for taking more money out of the hands of those already struggling.
EU law requires banks in trouble to be “bailed in,” meaning they would take a percentage of depositors funds to re-capitalize themselves. Of course, any bank being bailed in would be subject to a panic and could quickly collapse.
As reported in Zero Hedge, “The Deutsche Bank expert said he is particularly worried about Italy and the condition of local banks, where the €40 billion in funding needs is said to be “conservative.” He said that the bank bailout is so urgent that it should permit Europe to violate the bail-in rules of the new Banking Directive. The economist notes that such a bail-in is not doable and is politically unfeasible because it would hit people’s savings and may cause a bank run in both Italy and elsewhere.”
Another bailout request just goes to show how there is one set of rules for the powerful, and another for everyone else. Middle and low income people need a bailout, as that would do more to protect and strengthen the economy than giving the banks yet another bailout.
Unfortunately, it looks like the system isn’t about to be unrigged anytime soon.