Interesting snippet of a conversation at the FDIC meeting, "There will be bail ins"

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WEF are finally being open and honest. Population problems

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Where's the bit about population problems? Link only has the first topic

Nope, now we are missing the FDIC part.

What is a “bail in”? I’m familiar with a bail out but trying to understand what they’re saying here.

Thanks to the OP for posting this. It got me looking into "bail-ins". I'm no banker or financial pro so I my understanding is still pretty limited. I found this article on Investopedia that helped explain what this is and where it came from (link below). Simply put, new banking regulation that were passed after the Great Recession (2010) codified that governmental/taxpayer bailouts of large financial institutions would no longer occur and instead unsecured creditors and depositors would be required to "bail in" a failing bank that is "too big to fail". For depositors, their risk is deposit amounts over the 250K FDIC insured limit. I'm not sure what this means in practicality because if you are needing cash from a failed bank and waiting on the FDIC to pay out, you may be waiting for a long time. The thing that caught my eye was that "derivatives" are ahead in line of repayment in the event of a bail in. This is the same damn financial instrument that got all these institutions in trouble in 2008 and the total dollar amount in this sector looks to be so large that no one else would ever get paid back. I may not understand this fully so I'd love for someone more knowledgable to add to the thread. It is my understanding that during the 2008 financial crisis that the derivative and credit default swap market (bets and insurance polices on risky financial instruments done by bank and mortgage institutions) exceeded the entire global money supply. We are headed that way again. Freaking scary.

My take home from the article was: make sure your financial institution/bank is stable and not over leveraged in the mortgage/derivative market, watch changes in banking regulations. Wow, thanks for the help - not even a lot of smart people at the Fed or Wall Street saw the train coming last time. How is the average depositor at a bank supposed to know this? Bottom line - Wall St. and Banks get to gamble with your money and you are screwed when this doesn't work out because by the time you find out about it, it's too late.

LINK

So what accounts are “safe”? I prefer smaller local banks but is the risk greater? Are broker accounts like vanguard and Schwab “safer”? Where do people sitting on cash go like retirees?

Withdraw all your money and buy gold and post screen shots or gtfo.

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Yup, a bail-in is basically your money gets confiscated and go towards keeping the bank/financial institution solvent. 

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When converting deposits to equity, depositors (>250k) would receive shares of stock. They may not want stock and the market value may be low at first, but if the institution recovers depositors could do ok.

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And you think that is okay?

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Didnt say it was OK, just how I believe the new law works. Banks fail, fact of life sometimes. Do you bail them out with taxpayer money again? Let them fail? If they fail the deposits over 250k are a loss anyway. May as well recapitalize with that and try to save it without takpayer funds.

As mentioned earlier, if you must keep over $250k in deposit accounts spread it to other institutions.

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It is my understanding that during the 2008 financial crisis that the derivative and credit default swap market (bets and insurance polices on risky financial instruments done by bank and mortgage institutions) exceeded the entire global money supply

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Funding markets froze, the notional amount of derivatives isn't really relevant. But you are right to a degree that there is not enough dollars to service dollar denominated debt.