Dennis Tubbergen gives brief updates about the world's economy.
Grand Rapids, MI -- (SBWIRE) -- 05/30/2013 -- Have trouble keeping up with what is going on with the world's economy?
Dennis Tubbergen, a financial advisor, author, radio show host and CEO of PLP Advisors, LLC can help out. Whether people enjoy his weekly newsletter at www.moving-markets.com or his blog at www.dennistubbergen.com, Tubbergen is dedicated to sharing his viewpoints and opinions. On May 24, 2013 his blog was titled Finnish Prime Minister Says Stop the Bank Bailouts and Start Bank Bail Ins.
"In another sign that the attitudes of many policymakers around the world are changing when it comes to government-sponsored bailouts of banks, Finland's Prime Minister advocated that government-sponsored bank bailouts stop and bank bail-ins begin with a bank's creditors and depositors bearing the costs," began Tubbergen.
He quotes below from from a May 7, 2013 article published by Fox Business.
In a press conference alongside European Council President Herman Van Rompuy, Mr. Katainen said governments need to make the "shift from bailout to bail-ins." This is "the only way to secure taxpayers from" the cost of "failing banks," he added.
EU member states are currently negotiating the rules for bail-ins -- making a bank's creditors and, possibly, its depositors, bear the cost of a failure. However, the negotiations on the bail-in rules have dragged on for months and member states still have disagreements on key issues like the level of protection depositors should get and when the new bail-in rules should take effect.
Finland is one of several countries that wants the start date for the bail-in rules brought forward to 2015 but EU officials say a majority of member states prefer sticking to the original 2018 start date.
In his remarks, Mr. Van Rompuy said tha the European economy should pick up in 2014 after what he described as "two bad years" in 2012 and 2013. However, he acknowledged that "this crisis is dragging out and in too many countries there are are too many people without a job."
Mr. Van Rompuy said his focus at June's meeting of EU heads of government will be on measures to help young people without a job. The "youth guarantee" scheme offered by Finland could be a model for a Europe-wide initiative, he added.
"I believe this is a clear signal from European policymakers that the confiscation of bank depositor's assets that occurred in Cyprus will occur in other parts of Europe," notes Tubbergen. "Based on the comments made in this article, anyone with any sense would never put any money in any bank in Europe. It's clear that the policymakers there are going to continue to move in a direction that will, in my view, have more depositor assets confiscated."
Tubbergen goes on to say he doesn't believe for a minute that there will be a definite phase-in date. These depositor- and creditor-financed 'bail-ins' will occur when there is simply no other option; most likely, well ahead of any scheduled phase-in date.
Tubbergen's bottom line here?
"Depositor beware!" he warns.
To read the blog in its entirety go to http://www.dennistubbergen.com and select his May 24, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.
About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to www.moving-markets.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.