Bail in / Depression coming.

World news keeps talking about the poor finances of PIIGS (Portugal, Italy, Ireland, Greece and Spain) nations. The chart below shows the NPA of Indian banks.

India's financial situation is as bad as PIIGS, but the news media creates the impression that India's economy is doing great.
How will this problem end? There are only 2 solutions

1. Hyperinflation.
2. Depression and bail-in.

In Hyperinflation, the government creates lot of currency. This wipes out the debt. But it also causes all savings to be lost. Currency notes become almost worthless. Indian politicians will likely not choose this option voluntarily because the chances of revolt are high. The government will likely fall, if inflation rises.

So India during the next few years will have a depression. The government will likely

• Make high denomination notes invalid.
• But limits of bank cash withdrawals.
• Seize some percentage of currency in bank accounts.

By looting from people, the banks will be saved. Prices of stocks and real-estate will fall by a huge percentage.

To prepare for this bail-in, the government is passing FRDI bill. Prepare accordingly.