U.S. and UK to test big bank collapse in joint model run

Is this Reuters story a foreshadowing of a planned event for the near future?  Is it a propaganda piece to keep people on edge and easy to manipulate? I am not sure. I do know that we exist in a financial world build on a stack of cards and eventually it will collapse.  The Fed has been printing / creating money out of thin air, propping up the stock market and making some people at the apex of power very rich beyond your wildest dreams.  In the end though, what is money?  Do we ever really own anything if at the stroke of a pen some government agency can make that thing illegal to own or buy it from you at some ridiculous price via eminent domain laws?

THE EARTH IS THE LORD’S AND EVERYTHING IN IT!

                                                                                                                Psalm 24:1

Man can but use it a little while and then he is gone, but our God is eternal and the creation is His, but we like to think we are in control and own stuff.  Regardless of these facts, most people live their lives accumulating stuff, handing stuff down, and basing their security on how much stuff they have.  Beware trusting in trinkets of gold, silver and stocks my friends for they can be gone overnight and where will you be if your spiritual house is not build on a firm foundation and your faith and trust firmly in the Lord our God and creator?  They could crash the worldwide banking system tomorrow.  The stock market could become worthless tomorrow.  Oh, but you have gold and silver?  Will that feed you?  Will you be able to live in a world watching people suffer for a bowl of soup or some bread and feel you are fine because of your gold and silver?  Will you be safe from the hungry hordes who know you live in luxury while their children starve?  I hope your house can withstand the winds and revenging waves of tribulation that is coming.  This is not the tribulation of anti-christ, no that comes after this time of crisis.  That is when we are offered a SOLUTION to the problem that they created.  Will you jump at it for some food and “salvation”?  Are you a foolish virgin or a wise one?  Only the wise will be ready and know what to do.

Here is the story that I am basing my comments on, and you can decide how credible this threat of financial collapse really is:

U.S. and UK to test big bank collapse in joint model run

By Randall Palmer and Douwe Miedema

Oct 10 (Reuters) – Regulators from the United States and the United Kingdom will get together in a war room next week to see if they can cope with any possible fall-out when the next big bank topples over, the two countries said on Friday.

Treasury Secretary Jack Lew and the UK’s Chancellor of the Exchequer, George Osborne, on Monday will run a joint exercise simulating how they would prop up a large bank with operations in both countries that has landed in trouble.

Also taking part are Federal Reserve Chair Janet Yellen and Bank of England Governor Mark Carney, and the heads of a large number of other regulators, in a meeting hosted by the U.S. Federal Deposit Insurance Corporation.

“We are going to make sure that we can handle an institution that previously would have been regarded as too big to fail. We’re confident that we now have choices that did not exist in the past,” Osborne said at the International Monetary Fund’s annual meeting.

Six years after the financial crisis, politicians and regulators around the globe are keen to prove they have created rules that will allow them to let a large bank go under without spending billions in taxpayer dollars.

They have forced banks to ramp up equity and debt capital buffers to protect taxpayers against losses, and have told them to write plans that lay out how they can go through ordinary bankruptcy. The plans are so-called living wills.

Yet salvaging a bank with operations in several countries – which is the norm for most of the world’s largest banks such as Deutsche Bank, Citigroup Inc and JPMorgan – has proven to be a particularly thorny issue.

Because the failure of a big bank is such a rare event, regulators may not be used to talking to each other. There have also been suspicions that supervisors would first look to save the domestic operations of a bank, and would worry less about units abroad.

The exercise comes as regulators are about to bring to fruition further initiatives to make banking safer.

The first would force banks to have more long-term bonds that investors know can lose their value during a crisis, on top of their equity capital, to double their so-called Total Loss-Absorbing Capacity (TLAC).

A second measure, expected to be announced this weekend, will force through a change in derivative contracts, which in their current form protect investors, and complicate the winding down of a bank across borders. (Editing by Matthew Lewis)

Just for laugh at our accumulating stuff from one irreverent man who now knows whether there is a God or not, and I hope he was well received despite some things he said and did:

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