Harvey Organ: HUGE DEFAULT COMING TO A BIG AUSTRIAN BANK- EXPECT A MAJOR BAIL IN!

by Harvey Organ, Silver Doctors Today the 6th largest bank in Austria (Hypo Bank) halted payment of 8 billion euros of debt and they will enter shortly into a default position. In previous debt defaults, we had a bail out or a taxpayer funded rescue leaving senior bond holders and depositors completely whole. We will now witness the new modus operandi of rescues: bail ins where the bond holders and the depositors get hosed. Due to the fact that the liability on the balance sheet of Hypo is some bank’s assets, I can assure you we will have massive contagion coupled with a sprinkling of credit default losses. Good evening Ladies and Gentlemen: Here are the following closes for gold and silver today: Gold: $1207.70 up $4.90 (comex closing time) Silver: $16.41 down 10 cents (comex closing time) In the access market 5:15 pm Gold $1206.20 silver $16.42 Tonight we have three hot spots to cover. The first is the crisis in Greece where it seems that the pressure on Greece continues. Over the weekend, JPMorgan has established that another 10 billion euros of deposits have been removed. The government is contemplating using pension deposits to fund the IMF loan due next week. We wish all Greek pensioners all the luck in the world. The second crisis continues to be the war of words between Russia and the Ukraine/West. Russia stated today that any threat by NATO with respect to the Ukraine will be meet with a swift military response. This is something that we did not want to hear. Also on Friday night, the Russian Parliamentary opposition leader was murdered. As I pointed out to you on the weekend, the Ukraine is experiencing hyperinflation to no end. Food has disappeared from shelves. The country has about 2.5 weeks of liquid reserves left before they run out. The third hot spot is the failure of the 6th largest bank in Austria (Hypo Bank). A few days ago, they were given a clean bill of health and these guys were rated AAA. Today they halted payment of 8 billion euros of debt and they will enter shortly into a default position. In previous debt defaults, we had a bail out or a taxpayer funded rescue leaving senior bond holders and depositors completely whole. We will now witness the new modus operandi of rescues: bail ins where the bond holders and the depositors get hosed. Due to the fact that the liability on the balance sheet of Hypo is some bank’s assets, I can assure you we will have massive contagion coupled with a sprinkling of credit default losses. Not only that but depositors who are paying money to deposit at these banks will suddenly realize that they are nuts to keep their money there. Continue Reading>>>

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