Cyprus may raid bank accounts, 10% of savings

[AZRedhawk44]

http://www.reuters.com/article/2013/03/17/us-cyprus-parliament-idUSBRE92G03I20130317

euro zone finance ministers want Cyprus savers to forfeit up to 9.9 percent of their deposits in return for a 10 billion euro ($13 billion) bailout to the island, which has been financially crippled by its exposure to neighboring Greece.

The decision, announced on Saturday morning, stunned Cypriots and caused a run on cashpoints, most of which were depleted within hours. Electronic transfers were stopped.

That's a lovely precedent to set:  Penalize the savers for the actions of the gimme-gimmes.

I wonder why something like that would trigger a run on banks?      

[zxcvbob]

http://www.reuters.com/article/2013/03/17/us-cyprus-parliament-idUSBRE92G03I20130317

That's a lovely precedent to set:  Penalize the savers for the actions of the gimme-gimmes.

I wonder why something like that would trigger a run on banks?      

Something like that should trigger assassinations if they actually do it.  (did I say that out-loud?)

[French G.]

Theft, pure and simple, ought to be a fun day of street riots.

[Waitone]

Coming to a nation near you.

[HankB]

Expect major runs on banks in Greece, Spain, Portugal, and other Euro nations that are in bad condition fiscally.

One article said there were a lot of Russian billionaires with money in Cypriot banks . . . considering anyone in Russia who made billions has KGB/Party connections,  we could see a sudden spike in mortality of Cyprus' officials in the near future.

[RoadKingLarry]

Coming to a nation near you.

 A democrat's wet dream come true.

[Jamisjockey]

A democrat's wet dream come true.

Andrew Wilkow has played numerous clips of liberal think tanks suggesting that 401K's be raided, or forced into investing in US treasury interests.....some YouTube clips abound but I'm not adept at sharing YouTube links from my kindle yet....

[lee n. field]

Expect major runs on banks in Greece, Spain, Portugal, and other Euro nations that are in bad condition fiscally.

[AJ Dual]

Expect major runs on banks in Greece, Spain, Portugal, and other Euro nations that are in bad condition fiscally.

One article said there were a lot of Russian billionaires with money in Cypriot banks . . . considering anyone in Russia who made billions has KGB/Party connections,  we could see a sudden spike in mortality of Cyprus' officials in the near future.

Hell, I have zero tied up in Cyprus, and I'd be willing to do it just on the principle of the thing, assuming I had good guarantees of my personal safety and could be assured of coming home to the wife and kids after said wet-work.

[Blakenzy]

OK, maybe now people will begin to understand that we are cattle; mere resources allowed to grow fat and kept around to be harvested when the time is right.

Just to make it clear, your government (where ever you may be) does not care about your wellbeing or security, just about your productivity. Edit: ...your productivity, and more importantly their claim to it.

[AJ Dual]

Reason #1045 why stuff like BitCoin, the Libertarians, and the AnCap's are "right", and the accusations the political Right is just the "other side of the coin".

[Tallpine]

And I don't suppose the Cyprians are allowed to own guns, either 

[Fjolnirsson]

Reason #1045 why stuff like BitCoin, the Libertarians, and the AnCap's are "right", and the accusations the political Right is just the "other side of the coin".

^^^^^
Yep. I didn't become the anti-government nut I am overnight. Years of watching the corruption turned me to the dark side...

[Hutch]

Nothing to see here, move along.  Mencken's quotes ring soooooo true.

"An election is an advance auction of stolen goods"

"Any right-thinking man must at times be tempted to spit on his hands, hoist the black flag, and begin slitting throats".

[roo_ster]

Nothing to see here, move along.  Mencken's quotes ring soooooo true.

"An election is an advance auction of stolen goods"

"Any right-thinking man must at times be tempted to spit on his hands, hoist the black flag, and begin slitting throats".

What sort of crazy talk is that?

[CNYCacher]

What sort of crazy talk is that?

If you have savings in US Dollars, this is happening to you almost annually as we inflate our money supply.

That's why I'm smart, I only have debt in US dollars!   

[Viking]

And I don't suppose the Cyprians are allowed to own guns, either 

IIRC, it's difficult to say the least.

[Regolith]

And I don't suppose the Cyprians are allowed to own guns, either 

IIRC, it's difficult to say the least.

Yeah....

(Comments apply to the internationally recognized Greek portion of the island) Cyprus has strict gun control. Private citizens are completely forbidden from owning handguns and rifles in any calber, even .22 rimfire. Only shotguns are allowed, and these require a license. Shotguns are limited to two rounds. The only shotguns typically sold in stores are double-barreled side-by-sides or over-unders. Pump actions and semiautomatics are prohibited. A private citizen can own a total of ten different shotguns. A citizen is not required to specify a reason for ownership to obtain a license, but most own their guns for hunting. Licenses are issued by provincial police. A gun license is required to buy ammunition, and ammunition sales are recorded. A shotgun owner may purchase up to 250 shells at one time. Cyprus also controls airguns, and airgun owners require a license.[25]

http://en.wikipedia.org/wiki/Gun_politics#Cyprus

[French G.]

I read some more about this deal and I think it is worse than it first seemed to me after skimming Preacherman's assessment of it. Still pure theft, but organized theft. Germany and the EU is pushing it, possibly in an intentional shot at the Russian money. And pretty much strong-arming Cyprus since it is this or leave the eurozone. (Kinda funny how all the rats want to stay on the doomed ship.)

In Cyprus it is gladly pay you Tuesday for a hamburger today. Promising bank stock in compensation, and future bonds financed by natural gas they can't drill for because their good buddy Turkey thinks they own it. WTF.

 Since this is pushed by the EU and IMF, damn right run the banks in every troubled eurozone country. Somewhere I read a stat that in Spain last year 1/6 of their GDP was withdrawn from state banks over a one month period.

[ArfinGreebly]

"May" raid bank accounts?

It would seem (see here, also links within the article) that this is already an accomplished fact.

It very much looks like the confiscation is a done deal, with supporting legislation to follow.

[birdman]

If you have savings in US Dollars, this is happening to you almost annually as we inflate our money supply.

That's why I'm smart, I only have debt in US dollars!   

THIS!

Though, not quite annually, but QE-infinity ($40-80B/mo depending how its allocated) is close to / above a 5% monetary inflation (about 3-4% or so once real GDP growth is factored in) so given a typical savings yield of 0-1%, the Cypriot 6.75-9% haircut is simply 2-3 years of what is ALREADY happening here.

Toss in the now "normal" 60-70% of new treasury issue purchases by the fed and its even worse.  The only reason prices haven't been affected nearly as much is due to downward price pressure by elastic demand for certain things, but it can be plainly seen in commodities dominated by imports and priced in dollars (oil).

If you have savings in US Dollars, this is happening to you almost annually as we inflate our money supply.

That's why I'm smart, I only have debt in US dollars!   

Don't know if in jest, but this actually makes sense...if debt cannot be eliminated, at least its being inflated away, provided your savings are inflation protected.

Which reminds me...time for another silver/gold buy.

[lupinus]

With the copious amounts of funds in the islands bank system belonging to, shall we say, questionable Russian fraternal organizations and members of said questionable Russian fraternal organizations I must say this sounds like a really, really poorly thought out plan.

[Waitone]

Quick!  Anyone see anything about how Iceland handled its financial crisis?

You most likely won't.  Both Iceland and Greece endured "haircuts".  Greece (European union) force Greece citizens to endure the haircut.  Iceland took a different tack.  Iceland made bankers take the haircut.  Iceland has // is recovering while Greece's agony is only started.  A banker bailout will only adjust the terms;  it will not reduce principal owed which is exactly what happens in bankruptcy.  Iceland reduced principal; Greece merely extended terms on principal owed. 

[AZRedhawk44]

http://www.guardian.co.uk/business/2013/mar/18/eurozone-crisis-cyprus-bailout-savers-markets

Now the banks are closed.

Gosh.  Wonder why?

Time to get cash back on all debit card transactions since you can't get your money out of the bank.


Also, Brit Tories suck.  They sucked 250 years ago, and they still suck.  Hoover vacuum suckage.

Tory MP Andrew Tyrie warned parliament that the Cyprus bailout plan risks "triggering a run on the banks", and criticised it as "badly thought through and dangerously slow".

Dangerously slow?  That's the point you want to make, on record?  It's better to just swoop in, in the dead of night and have people's money stolen?  You want to see banks on fire and managers lynched in the street over this?

Dangerously slow.

$Deity forbid people have the opportunity to be free from your idiotic machinations.

Effing Statist SOB.

[Scout26]

Coming to a nation near you.

 A democrat's wet dream come true.

Already been done.  Roosevelt and gold in 1930's.   

Next stop: 401(k)'s and IRA's.