Tuesday, October 18, 2016

Italians Savers Jumping Out of Frying Pan and Into The Fire By Moving From Banks To Post Office

The old saying out of the frying pan and into the fire applies to Italian savers moving from banks to the post office savings. Italians that assume that the public sector is safer than the private sector will learn the hard way (loses) when failing confidence in the public sector drives the next crisis. Rules to confiscate 10% of the deposits to bailout private sector banks were conceived by the public sector desperate to maintain the status quo.

Smart money is not transferring deposits from the private sector banks to the public sector but rather withdrawing from both by transferring funds to the United States, buying private sector assets such as stocks, real estate, collectibles and/or commodities that include gold and silver.

Headline: Italian savers bank on post office to survive next crisis

Italians worried about the stability of their banks have found a new place to put their money: the state-controlled post office.

"Nobody knows where your money is safe today," says Leonardo Galli, a 58-year-old accountant who has resolved to move all his savings out of his bank to a current account with Poste Italiane (PST.MI), one of many who are deserting the banking sector.

"Poste Italiane is state controlled, this is a safeguard," he explains. He already channels his salary into a Poste Italiane account and pays his bills through a standing order made at a post office branch a few steps away from his office.



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