BAIL OUT VS BAIL-IN
So I was familiar with the term ‘Bail-Out’
My dad said it to me every time I left the lights on in my room. 💡
I also heard it ALOT around 2008 with headlines such as:
🤑"Bailout Package: Now With Free Executive Bonuses!”
💸"Wall Street on Welfare”
🏧"Buy One Bank, Get Two Free!”
What I have NEVER heard before is the term ‘Bail-In’??
What is it?
It sounds fun!
It sounds like the latest amusement at Thorpe Park
“SCREAM as you ride the BAIL-IN this summer!” 🎢
A bail-in is when the failing bank can use the money of depositors, shareholders, and bondholders to ‘stabilize’ themselves rather than relying on government money.
Basically…
Your money.
The Bank of England has kindly outlined this process for you and called it a stabilization tool
https://www.bankofengland.co.uk/paper/2021/executing-bail-in-an-operational-guide-from-the-boe
phew! I was worried there for a second!
Another reason to put your focus on Bitcoin and out of the financial system
So 'bail-in' is where the bank pulls a sneaky and uses *your* money to save itself
Think of it as the ultimate thrill ride where you didn’t even know you were tall enough to hop on!
But hey, as long as it’s all part of the plan, right? 😅
#Bitcoin #BTC #Bitcoinbeginners #crypto #Cryptocurrency