Author Topic: Cyprus may raid bank accounts, 10% of savings (Read 20482 times)

RevDisk · « **Reply #25 on:** March 18, 2013, 12:24:04 PM »

Quote from: lupinus on March 18, 2013, 09:20:07 AM

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.

Correct. And Putin is less than pleased, as well. Cyprus has very close ties to Russia.

Quote from: Waitone on March 18, 2013, 09:34:53 AM

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.

Correct. Combined with Holder's admission that the DoJ will not jail bankers for breaking the law...

I'm not saying "big bank is teh evilz!", I'm saying they are an industry that bribe governments and tend to be more than slightly incestuous with governments. Goldman Sachs and the US Treasury Department have revolving doors. Do you really think the Treasury Department will damage a company that owns their senior executives?

When a bank goes under, it should be allowed to die. Socializing loses, and privatizing gains is not the way to go. Play stupid game, win stupid prize.

longeyes · « **Reply #26 on:** March 18, 2013, 01:11:28 PM »

Trigger a run on banks?

Or a run on triggers?

Theft is theft.

slingshot · « **Reply #27 on:** March 18, 2013, 01:37:47 PM »

I expect the same thing to eventually happen on retirement accounts here. I really trust my Federal government.

Scout26 · « **Reply #28 on:** March 18, 2013, 03:54:11 PM »

Interesting that Yahoo News is screaming "The Sky Could Be Falling".

http://finance.yahoo.com/blogs/daily-ticker/why-cyprus-bail-bigger-deal-think-141844402.html

Keep an eye on Spanish, Greek, and Italian banks. This could be what pushes the entire rotting edifice over the edge.

brimic · « **Reply #29 on:** March 18, 2013, 04:23:46 PM »

Quote

Keep an eye on Spanish, Greek, and Italian banks. This could be what pushes the entire rotting edifice over the edge.

I keep hearing that march 22nd is supposed to be the next date with bad juju attached to it...but have no idea why...

Lee · « **Reply #30 on:** March 18, 2013, 07:16:23 PM »

Isn't March 22nd, Hang a Banker Day?
You know things are bad when communists and socialists are the loudest opponents of the government taking people's money.

longeyes · « **Reply #31 on:** March 18, 2013, 08:34:02 PM »

Let's see now, The Fed has only lost 97 per cent of the value of the dollar since it took the rudder...but we would never do anything as crazy as the Cypriots, right?

MicroBalrog · « **Reply #32 on:** March 19, 2013, 12:59:15 AM »

The Russian media are reacting.. very negatively to this.

Some believe it is a plan to strongarm the Russian government into paying part of the costs of 'saving' Cyprus.

brimic · « **Reply #33 on:** March 19, 2013, 08:35:32 AM »

Quote

The Russian media are reacting.. very negatively to this.

Some believe it is a plan to strongarm the Russian government into paying part of the costs of 'saving' Cyprus.

This is what worries me most.

If we extrapolate this out...

What caused all of these banks and governments to implode? Or who is the worthiest scapegoat?
These European governments and banks are in dire trouble for two reasons: overspending and investment in worthless American mortgage backed securities.
It wouldn't be a stretch for European governments to claim they've always operated this way, but it was the American and Western European bankers who sold them the 'investments' that bankrupted them.
So now Cyprus is sticking it to the the Russians purposely- I don't see this ending well.

Maybe we could round up Bawney Fwank, Timmy Geitner, The execs from lehman Brothers and Goldman Sachs and send them to Russia for a consolation prize.

TechMan · « **Reply #34 on:** March 19, 2013, 12:55:04 PM »

They are trying to make it happen here in a round about way. http://www.foxnews.com/politics/2013/03/19/california-businesses-fuming-over-retroactive-120m-tax-grab/?test=latestnews

Quote

In December, the state's tax authority determined that a tax break claimed over the past few years by 2,500 entrepreneurs and stockholders of California-based small businesses is no longer valid and sent out notices of payment.

Read more: http://www.foxnews.com/politics/2013/03/19/california-businesses-fuming-over-retroactive-120m-tax-grab/?test=latestnews#ixzz2O0O5MGpz

CA wants payment with interest. The issuing of the bills is currently delayed, as the legislature is introducing bills to not allow this to happen.

HankB · « **Reply #35 on:** March 19, 2013, 02:52:01 PM »

Looks like Cyprus' lawmakers blinked . . .

http://www.foxnews.com/world/2013/03/19/cypriot-financial-officials-working-on-bailout-details-after-plan-to-seize/

Sure would be interesting to hear what went on behind closed doors . . . was it concern for the integrity of the banking system, fear of ex-KGB wet work, or local lynch mobs?

brimic · « **Reply #36 on:** March 19, 2013, 04:32:24 PM »

How much more eurofail is necessary before Germany decides to walk away and let the rest of the continent burn?

Scout26 · « **Reply #37 on:** March 19, 2013, 04:49:02 PM »

Given that not one politician voted for this, my guess is that they love life, their families and everyone they ever met. (I would have loved to have heard some of the phone calls I'm sure they got.)

Prepare for a run on Cypriot banks once they re-open. "Thank you for calling the Cayman Islands, we are NOT part of the Eurozone, and do NOT spend money we don't have. Press 1 to open a new account. Press to 2 to add to your existing account. Have a nice day."

roo_ster · « **Reply #38 on:** March 19, 2013, 06:19:41 PM »

Quote from: brimic on March 19, 2013, 04:32:24 PM

How much more eurofail is necessary before Germany decides to walk away and let the rest of the continent burn?

Oh, how I would laugh to see a "Northern/Central European Currency" that included Germany & Poland.

slingshot · « **Reply #39 on:** March 19, 2013, 10:22:34 PM »

I do imagine that the legislators in Cypress got some interesting calls from Russians. I think something like this will happen with US banks on 401K's, IRA's, etc. to save the government from itself. The choice will be a dollar with run away inflation that will erode the value of these accounts quickly or anti-up and move on.

Sindawe · « **Reply #40 on:** March 19, 2013, 10:52:22 PM »

Quote

...I think something like this will happen with US banks on 401K's, IRA's, etc. to save the government from itself. The choice will be a dollar with run away inflation that will erode the value of these accounts quickly or anti-up and move on.

As in our "Betters" will learn their lesson about run away spending and the dangers of a fiat currency?

41magsnub · « **Reply #41 on:** March 20, 2013, 09:48:03 AM »

New Zealand is considering the same thing. http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm

HankB · « **Reply #42 on:** March 20, 2013, 10:38:12 AM »

Quote from: 41magsnub on March 20, 2013, 09:48:03 AM

New Zealand is considering the same thing. http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm

Green party isn't always what I'd call credible, but if true in this case, I expect a Kiwi bank run soon . . .

AZRedhawk44 · « **Reply #43 on:** March 20, 2013, 10:44:25 AM »

This is where you ask yourself...

Given that Ben Bernanke's management of the Fed Reserve has interest rates so low that there is no reward to having a savings account at all (0.05% or something stoopid like that), and the potential damage the FedGuv could do to your savings if they opted for a similar treatment of depositors in the US... what's the point of having a savings account at all, rather than a safe deposit box with an unknown X-value of unknown goods in it?

While hiding it under the mattress certainly has its risks (fire, theft), safe deposit boxes really only have the risk of bank closure during a run.

Tallpine · « **Reply #44 on:** March 20, 2013, 11:21:34 AM »

Quote from: AZRedhawk44 on March 20, 2013, 10:44:25 AM

This is where you ask yourself...

Given that Ben Bernanke's management of the Fed Reserve has interest rates so low that there is no reward to having a savings account at all (0.05% or something stoopid like that), and the potential damage the FedGuv could do to your savings if they opted for a similar treatment of depositors in the US... what's the point of having a savings account at all, rather than a safe deposit box with an unknown X-value of unknown goods in it?

While hiding it under the mattress certainly has its risks (fire, theft), safe deposit boxes really only have the risk of bank closure during a run.

I'm getting pretty close to raiding my savings and paying off the house

mtnbkr · « **Reply #45 on:** March 20, 2013, 11:40:38 AM »

Do these, and other plans, for skimming off peoples' savings include accounts other than traditional depository savings accounts? I have a sizeable fund in a no-penalty CD with a decent interest rate (for these days). I've considered pulling that money and putting it into a safety deposit box or under the mattress, but would prefer to leave it where it is if it isn't in danger of being skimmed.

Thoughts?

Chris

MillCreek · « **Reply #46 on:** March 20, 2013, 11:48:52 AM »

Quote from: Tallpine on March 20, 2013, 11:21:34 AM

I'm getting pretty close to raiding my savings and paying off the house

I wonder. I could write a check today and pay off the $ 45K still owing on the house. I have not done so because it would take half of my savings, and I like to have an emergency fund. But you have to wonder.

French G. · « **Reply #47 on:** March 20, 2013, 02:27:07 PM »

If the house loans are low interest that should be the last thing to get paid off. Buy something useful. The problem wit hall this hide it under the mattress plans is that if the world continues you are going to get killed by declared or undeclared inflation. Something like stocks is going to track that, right up until it gets seized.

But savings account? Why bother?

Tallpine · « **Reply #48 on:** March 20, 2013, 03:00:49 PM »

Quote from: French G. on March 20, 2013, 02:27:07 PM

If the house loans are low interest that should be the last thing to get paid off. Buy something useful. The problem wit hall this hide it under the mattress plans is that if the world continues you are going to get killed by declared or undeclared inflation. Something like stocks is going to track that, right up until it gets seized. But savings account? Why bother?

Trying to strike a balance between home/land improvements, paying off the mortgage, and keeping an emergency fund.

erictank · « **Reply #49 on:** March 20, 2013, 04:35:38 PM »

Quote from: AZRedhawk44 on March 20, 2013, 10:44:25 AM

This is where you ask yourself...

Given that Ben Bernanke's management of the Fed Reserve has interest rates so low that there is no reward to having a savings account at all (0.05% or something stoopid like that), and the potential damage the FedGuv could do to your savings if they opted for a similar treatment of depositors in the US... what's the point of having a savings account at all, rather than a safe deposit box with an unknown X-value of unknown goods in it?

While hiding it under the mattress certainly has its risks (fire, theft), safe deposit boxes really only have the risk of bank closure during a run.

I get more on my CHECKING account, I think, than I do on my savings (thank you, Navy Federal - it was all of $14 combined last year, but still...).

By way of comparison, my wife got $0.08 last year from BoA. Carrying balances similar to mine.

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Author Topic: Cyprus may raid bank accounts, 10% of savings (Read 20482 times)