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The EU Bail-In Directive: Dark Clouds Are Gathering



After the unseemly bankruptcy of the Espirito Santo Group and the associated bank, then Portugal’s second biggest (likely a result of not praying enough, see: “Big Portuguese Bank Gets Into Trouble” and “Fears Over Banco Espirito Santo Escalate” for the gory details), Portugal’s state-run deposit insurance fund basically ran out of money. It turns out that Europe’s new Bank Recovery and Resolution Directive (BRRD for short) came just in time for Portugal. At the end of 2015, another Portuguese bank bit the dust, the country’s seventh largest lender by assets, Banif. Portugal’s government once again decided to bail the bank out, but with strings attached. Subordinated bondholders and shareholders were essentially wiped out, which is as it should be. Jan.10  http://www.zerohedge.com/news/2016-01-10/eu-bail-directive-dark-clouds-are-gathering





To understand this important news coming in from Portugal, I take my readers back to the last solar eclipse. Notice that it fell prominently on the Ascendant at Lisbon where Jupiter has just stationed retrograde. This implies that the essence of the eclipse has been triggered in the last few days.

The following is an extract from Nick Fiorenza’s post on the solar eclipse of September 13 entitled “Winds of Change & New Beginnings”.

This solar eclipse brings winds of change that inspire new outward expressions in our lives. The Juno-Makemake North Lunar Node conjunction at this significant location in the ecliptic indicates this eclipse prominently effects relationships of all types along with emphasis on the administration of resources in relationships.  (Note: Juno is about  “rights” and fairness and enforcement of fairness especially in money matters [1])…Makemake appears to bring attention to leadership issues regarding the administration of resources; and in areas involving economics, ecology and human survival. Makemake may also impel strategic planning and enterprising action to create environmental conditions that ensure a healthy, prosperous and abundant life for groups or for the people in general. Makemake may also act to sort out those who are truly worthy of being in a leadership role from those who are not.

The  Full Moon brings the solar eclipse theme to its culmination. It brings realization about our need to clear our selves from any psychic and emotional webs of entrapment and to redefine our focus, dedication and commitments from this resultant clarity. This is prerequisite to having the discernment to see through the diversionary commotion occurring in the world, (Note: especially caused by  blindly following false leaders who do not have the good of the masses at heart) and to function upon transcendent currents guiding our lives into newer progressive modalities of living and co-participating in our relations as we continue into our surely but slowly manifesting new world paradigm [2].

That this eclipse is about enforcing the rights of the  bank depositors who are be stiffed of their money  becomes clear from the foregoing.

The first euro area government that has tried to subvert the law governing the relations between creditors and borrowers was that of Austria. It was recently ignominiously stopped from doing so by the country’s Constitutional Court, which declared the so-called “Hypo Alpe Adria Special Law” unconstitutional. What the government tried to do in this case was to stiff certain classes of creditors in spite of the fact that their bonds had been guaranteed by the now essentially insolvent province of Carinthia. As one can easily imagine, this decision didn’t go down well with the affected creditors and they sued the government. Austria’s Constitutional Court rightly concluded that the government had attempted to subvert essential legal principles and repealed the law in its entirety.


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