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muhly22222 -> RE: New Zealand is thinking of going all Cyprus (3/19/2013 3:07:12 PM)
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ORIGINAL: DesideriScuri
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ORIGINAL: Yachtie
That is currently the role FDIC plays. All it would take might be a banking holiday and executive order, or quick Act of Congress, whereby FDIC is bypassed in favor of Lawful Seizure. It could be done.
Bigger question would be whether savings or other monetary accounts (401k's, IRA's, investment portfolio's, etc.) can be defined as "property" for the purpose of takings law, aka Eminent Domain. If bailing out a bank is accepted as a public benefit, then couldn't taking private property ($$) for that public benefit fall under the purview of eminent domain?
Wouldn't that be one helluva Government fuckjob!
That's an interesting idea. Although the law also requires government to provide reasonable compensation when they take property, which is generally considered Fair Market Value (which isn't really fair, but that's another issue). The FMV of monetary accounts would seem to be the dollar value of those accounts, and should be pretty easy to quantify, and would be a 1-for-1 exchange, dollar-wise.
I can't begin to fathom how that would be a good idea, but I'm not the smartest person in the room, especially when it comes to economics. Maybe if they were confiscating the accounts now in exchange for bonds that would be paid at a later date? Although if the government needed to confiscate my bank account funds, I certainly wouldn't trust them to honor their bonds.
Can you imagine a better way to start a run on banks, too? Because that worked so well in 1929...
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