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Re: Poland confiscates half of pension funds....

By: Cactus Flower in ALEA | Recommend this post (0)
Sat, 07 Sep 13 8:15 PM | 110 view(s)
Boardmark this board | The Trust Matrix 		Msg. 14606 of 54959
(This msg. is a reply to 14604 by faul)
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hi doma,

it sounds like polish bondholders will retain the interest on the bonds but lose the value of the principle. different to the cypriot scenario, in which cash was seized outright.

assuming the polish government is not able to issue new debt and build stuff - which sounds to me like a better idea, then ....

awful as it is, i kinda get it.

governments are trying to find a way to reduce the value of debt which the pre-crash environment generated.

because for some countries, the current level of debt is not supportable. so they are making choices in which there are winners and losers.

the questions they might ask.

why should future generations bear the burden to keep existing debtholders happy?

and why not have current bondholders (rather than taxpayers generally) pay part of the price?

an alternative to retaining the (apparently unbearable) obligation at current prices would be to encourage inflation or lower the value of the currency. but european countries seem set against those ideas.

so this kind of manouevre is what is left.


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The above is a reply to the following message:
Poland confiscates half of pension funds....
By: faul in ALEA
Sat, 07 Sep 13 12:21 PM 		Msg. 14604 of 54959

The New Government/Banker Model coming soon to
Everyone!....Bail-in of your deposit accounts
and confiscation of your pension funds....well
i told you a few months back it was coming!!

Neither the money in your bank accounts nor the
shares/bonds etc you hold are safe....deposit
accounts are unsecured creditors and 99% of shares
etc are not held in your name but your bank or
broker......unless you have paper share certificates or DSR....

FDIC only insures $40 billion of the $11 Trillion
on deposit.....so no that won't save you.

Prepare for the Great leveling............

"While the world was glued to the developments in the Mediterranean in the past week, Poland took a page straight out of Rahm Emanuel's playbook and in order to not let a crisis go to waste, announced quietly that it would transfer to the state - i.e., confiscate - the bulk of assets owned by the country's private pension funds (many of them owned by such foreign firms as PIMCO parent Allianz, AXA, Generali, ING and Aviva), without offering any compensation. In effect, the state just nationalized roughly half of the private sector pension fund assets, although it had a more politically correct name for it: pension overhaul."


http://www.zerohedge.com/news/2013-09-06/poland-confiscates-half-private-pension-funds-cut-sovereign-debt-load#comments

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