Mish's Global Economic Trend Analysis |
| Canada Discusses Forced Depositor Bail-In Procedures for "Too Big To Fail" Banks in 2013 Budget Posted: 28 Mar 2013 01:54 PM PDT Inquiring minds in Canada managed to slog through a massive 433 page budget proposal and discovered Depositor Haircut Bail-In Provisions For Systemically Important Banks. Sure enough. Right on page 145 (PDF page 155) of the Canada Economic Action Plan for 2013 We see ... "The Government proposes to implement a bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital. This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail- in regime in Canada. Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants." In case you are unfamiliar with bank parlance, deposits are not "assets" they are "liabilities". A plan that would turn "certain bank liabilities" into regulatory capital is a plan to confiscate deposits. As noted in Fraudulent Guarantees; Fictional Reserve Lending; Comparison of US to Cyprus; What About New Zealand? I believe guarantees on deposits are inherently fraudulent. But at least the Reserve bank of New Zealand is upfrnot about the situation. Canada is not. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
| Youth Unemployment Rates: US, Germany, Italy, Spain, France, Greece; Where to From Here? Posted: 28 Mar 2013 09:59 AM PDT Here are some unemployment charts I put together via Ycharts. Youth Unemployment Rates US vs. Europe  Spain and Greece have youth unemployment over 50%. Germany, at 7.9%, has the only youth unemployment rate under 10%. US has second-best 16.8%, nothing to brag about except in relative terms. Unemployment Rates US vs. Europe  Once again, notice the tight clustering at the start of the recession vs. the huge spreads today. As with youth unemployment, Spain and Greece lead the pack with overall unemployment rates above 25%. Youth Unemployment Rate Percentage Change US vs. Europe  In percentage terms, Germany is the only country with falling youth unemployment. US youth unemployment is up 58.56% in five years. Unemployment Rate Percentage Change US vs. Europe  In percentage terms, Germany is the only country with falling overall unemployment in the last five years. German unemployment has fallen by 32.05% in five years, while US unemployment is up 50.98% in the same time frame. The Disability Connection Since late 2009 US unemployment has dropped, but much of that is a mirage based on people dropping out of the labor force at a staggering rate, with many going on disability. For the disability connection please see Unwilling to Work; 25% in Hale County AL Collect Disability, 14 Million Nationwide; A Simple Solution. Looking Ahead Looking ahead, I expect the unemployment picture in Europe to worsen dramatically. Germany will not be immune. For an explanation, please see Eurozone Downturn Accelerates Despite German Growth; Divergence to France Widest in 15 Years The global "recovery" is over, even though economists in general refuse to make note. So don't expect the US to be immune from rising unemployment either, no matter how much Bernanke floods the system with QE. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
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