Following the Financial Crisis in 2008, investors became all-too-familiar with how a government bailout works. The U.S. government stepped in and bailed out big banks and the auto industry with taxpayer money during the worst of the crisis.
The U.S. government has now made more than $67 billion in profits for taxpayers from the Financial Crisis bailouts, but they were widely criticized at the time. Many argued that U.S. taxpayers should have no responsibility to assume the risks of struggling companies.
The Bail-In
In 2013, Cyprus experimented with a new type of financial relief: the bail-in. When the Bank of Cyprus essentially became insolvent, uninsured bank depositors were forced to surrender nearly half of their deposits in exchange for shares of bank stock.
The key difference between a bail-in and a bail out is…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!