Greece ordered its banks shut Monday to avert a financial collapse after the European Central Bank froze emergency loans to the nation’s lenders.For the privilege of holding your money banks pay no interest to a pittance. They control when and how you access it. Thus people look to other vehicles for returns.
BlackRock Inc. is seeking government clearance to set up an internal program in which mutual funds that get hit with client redemptions could temporarily borrow money from sister funds that are flush with cash.Recall who gets flinched when the big boys begin to fall. At Jon Corzine's MF Global it was customers.
MF Global Holdings Ltd. was ordered to pay $1.2 billion in restitution and a $100 million fine over claims that a brokerage unit misused customer funds.Watch out when the big money boys no longer trust one another to make good on their debts. Everybody rushes to cash.
Update 6-29-15: Greek banks are now closed for a week Puerto Rico said its debts are unpayable. Ukraine asked for a 40% debt write down.
Update 7-25-15: Greek pensioners who voted against austerity find a bigger dose. Western democracy preys on the most vulnerable as evidenced by the new monthly pension of 87 Euros ($94) for a handicapped person.