bail-in

discussion
davefairtex
By davefairtex on Wed, Jun 18, 2014 - 3:04am

Signs of Eurozone Bail-ins on the way, with timeline unknown

An indicator I developed a while back is starting to present a pretty clear picture of what life holds for bank liabilities in the eurozone.

When things go bad in a bank, when assets drop below liabilities, you can either increase assets (a bank bail-out by taxpayers injecting cash), or you can decrease liabilities - assuming you don't want all those bankers to actually lose their jobs in the unpleasantness of bankruptcy that would occur in real capitalism.