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This is taken from the book 'The Great Taking'. The author states that any security worldwide is no longer truly owned. To illustrate the absurdity of this, he uses the analogy of a car (to be clear he is not saying that this applies to cars but to securities):

"Let’s say that you have purchased an automobile for cash. Having no debt against the vehicle, you believe that you now own it outright. Despite that, the auto dealer has been allowed by a newly invented legal concept to treat your car as his asset, and to use it as collateral to borrow money for his own purposes. Now the auto dealer has become bankrupt, and your vehicle along with all of the others sold by the dealer are seized by certain secured creditors of the dealership, with no judicial review being necessary, as legal certainty was previously established that they have absolute power to take your car in the event of the bankruptcy of the dealer."

Is this true in your country? #asknostr

DataNostrum 2y ago

I know that in many (all?) countries, when you deposit money at the bank, the bank effectively takes ownership of the money, i.e. it is no longer yours, and you are not first in line to get it back in the event of the bank's bankruptcy. Insanely, if you take out a mortgage from a bank, and put the money on an account in the same bank, then in the event of the bank's bankruptcy, your money can go up in smoke while your mortgage remains intact, i.e. they don't get cancelled out.

I was not aware that the same thing applies to securities. Any people here who know about such things?

#asknostr #nostrplebs

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Discussion

Big Dave 2y ago

It's sort of true , banks are insured and unless you are below that insured amount or have it in an account with different criteria to a normal bank account you can lose out.

In Europe a standard bank account will guarantee up to €100k so if you have €99k in an account and the bank goes bankrupt you will get your €99k back but if you have €299k in that account you may only get €100k back depending on the overall situation of the bankruptcy.