Cyprus Bank Run.

[ZenOps]

http://www.nytimes.com/2013/03/17/business/global/facing-bailout-tax-cypriots-try-to-get-cash-out-of-banks.html

"Although banks placed withdrawal limits of 400 euros, or about $520, on A.T.M.’s, most had run out of cash by early evening. People around the country reacted with disbelief and anger."

"Under an emergency deal reached early Saturday in Brussels, a one-time tax of 9.9 percent is to be levied on Cypriot bank deposits of more than 100,000 euros effective Tuesday, hitting wealthy depositors — mostly Russians who have put vast sums into Cyprus’s banks in recent years. But even deposits under that amount are to be taxed at 6.75 percent, meaning that Cyprus’s creditors will be confiscating money directly from pensioners, workers and regular depositors to pay off the bailout tab."

[Xtrema]

Funny, why don't they do it to every country that needed bailouts?

But now this happened in Cyprus, would there be a run on the Euro currency as money probably will be rushed to British or American banks?

[01RedDX]

.

[badatusrnames]

Originally posted by 01RedDX


Because half of the depositors are Russian crooks.

Then target them directly. Doesn't mean that normal, honest people should be affected by this as well.

[ZenOps]

Too difficult. Economic warfare means that get 1 bad guy you have to get rid of 10 peasants standing in front of him.

Guilty by association, proximity is good enough reason. Its like living next to Rob Anders automatically means surveillance from an Obamadrone.

They could start going after the tax havens more popular with US depositors too...

BTW: Save your nickels.

[M.alex]

I'm surprised more people arn't worried about this - how would you feel if the government decided that all your savings, stock accounts, pensions, etc... are now subject to an immediate one-time 10% tax here.

People today are a bunch of pussies and would just roll over and take it up the ass.

[ZenOps]

Originally posted by M.alex
I'm surprised more people arn't worried about this - how would you feel if the government decided that all your savings, stock accounts, pensions, etc... are now subject to an immediate one-time 10% tax here.

People today are a bunch of pussies and would just roll over and take it up the ass.

I get the feeling that there will not be mass protests, as most are either peasants or 1%ers.

QPKKQnijnsM

Although that is the US, it still is valid for most of the world. The bottom 30% is usually in debt, and is already used to paying $20 to borrow $200 on a payday loan to make it to the end of the month.

The middle class: Paying $135 for maybe $2,000 worth of deposits will anger, but is really not something one would bring out the pitchfork for.

It really only effects the 1% elites in a significant way.

[BigMass]

Originally posted by M.alex
I'm surprised more people arn't worried about this - how would you feel if the government decided that all your savings, stock accounts, pensions, etc... are now subject to an immediate one-time 10% tax here.

People today are a bunch of pussies and would just roll over and take it up the ass.

Apart from our standard taxes, same thing happens in the US and Canada. Only we get taxed through inflation instead of a direct tax. Laymen aren’t sophisticated enough to realize that both methods accomplish the same thing, punish savers. The advantage our governments have over say, Cyprus, is we issue our own currency and can just move decimal points on our balance sheet to take care of our debts. In the long run we’re all fucked, but the advantage we have is we’re able to kick the can down the road.

[dimi]

To counterbalance their cash loss, depositors will receive Cypriot bank bonds

Adding insult to injury...

[Isaiah]

Originally posted by M.alex
I'm surprised more people arn't worried about this - how would you feel if the government decided that all your savings, stock accounts, pensions, etc... are now subject to an immediate one-time 10% tax here.

People today are a bunch of pussies and would just roll over and take it up the ass.
Wouldn't you be the first one since it's a shorter distance down for you?

[Beerking]

You can view this as a test run for the rest of the Euro PIGS, would not be surprised to see bank runs reach Spain in a week.

And you must ask yourself, when the ECB made this decision they knew that bank runs would be an almost guarantee, yet they still did it....tells me things are getting very bad very fast


"Well, that escalated real fast, I mean that really got out of hand"-Burgundy

"When its serious, you lie"-Jean Claude Junker

[davidI]

Originally posted by M.alex
I'm surprised more people arn't worried about this - how would you feel if the government decided that all your savings, stock accounts, pensions, etc... are now subject to an immediate one-time 10% tax here.

People today are a bunch of pussies and would just roll over and take it up the ass.

This is where the flags theory makes a lot of sense. Spread your assets out over multiple jurisdictions to limit your potential losses from these crooked government actions.


Originally posted by BigMass


Apart from our standard taxes, same thing happens in the US and Canada. Only we get taxed through inflation instead of a direct tax. Laymen aren’t sophisticated enough to realize that both methods accomplish the same thing, punish savers. The advantage our governments have over say, Cyprus, is we issue our own currency and can just move decimal points on our balance sheet to take care of our debts. In the long run we’re all fucked, but the advantage we have is we’re able to kick the can down the road.

So true. Our politicians are allowed to keep running deficits because it provides "stuff" to the majority who then support those politicians and keep them in office. Leverage can be good, but only if used as an investment. If countries were businesses, the majority of the world would be bankrupt. It's just not sustainable or logical. The standard of living enjoyed in Canada is beyond the means of Canadians...both personally and publicly.

[Toma]

Just to point out how scary this is.... Canadian government is JUST as in Debt as the Cyprus one is.

Gross government Debts as a percentage of the economy is 87% in both countries..

[BigMass]

Originally posted by Toma
Just to point out how scary this is.... Canadian government is JUST as in Debt as the Cyprus one is.

Gross government Debts as a percentage of the economy is 87% in both countries..

Sure, but we can "print" dollars, they can't print euros. They have to deal with their problems now while we can kick the can down the road. People don’t’ realize inflation is a tax, so when a loaf of bread costs $20 they’ll blame the greedy corporations instead of government monetary policy.

[ZenOps]

http://www.zerohedge.com/news/2013-03-19/us-deposits-perspective-25-billion-insurance-9283-billion-deposits-297514-billion-de

A reminder from ZH about just how "secure" FDIC insurance is. In the US, they insure for deposits up to $250,000 for each person.

BUT: There is a cap of $25 Billion. Total deposits are a little over $9 Trillion in the US.

Canada is CDIC insured up to $100,000 cdn, and if someone wants to find the cap for it, please post it.

I said that this may be the year that insurance companies start to go bankrupt, it would be hella something if the FDInsuranceC was the first one.

Reminder: Save your nickels, or better yet - buy a ton of US nickels.

[Xtrema]

Originally posted by BigMass


Sure, but we can "print" dollars, they can't print euros. They have to deal with their problems now while we can kick the can down the road. People don’t’ realize inflation is a tax, so when a loaf of bread costs $20 they’ll blame the greedy corporations instead of government monetary policy.

Fuck it, I'm hoarding nickels.

:rofl:

[Sugarphreak]

...

[Manhattan]

Dammit. I thought this would one of the Color Me Rad things.

[Feruk]

Deal didn't go through. So I'm confused... is Cyprus going to default?

[Manhattan]

Not necessarily. Just means they're in the same predicament as Greece. Accept a bailout in exchange for austerity measures.

[davidI]

....and the plot thickens.

The Russian Mob / Parliament has some pull :rofl:

Not to mention it was a f*cking retarded decision to come up with for a $13 bbn solution!

[dj_honda]

This is a good article about Cyprus - I think there is a lot of panicking going on that isn't entirely justified:

http://dealbook.nytimes.com/2013/03/18/a-bank-levy-in-cyprus-and-why/

I think what it comes down to is the fact that the limit is too low for their levy and it affects ordinary savers. Once they raise that so that the pensioners and avg population is not affected, I could see this levy going through.

[Toma]

Originally posted by ZenOps
http://www.zerohedge.com/news/2013-03-19/us-deposits-perspective-25-billion-insurance-9283-billion-deposits-297514-billion-de

A reminder from ZH about just how "secure" FDIC insurance is. In the US, they insure for deposits up to $250,000 for each person.

BUT: There is a cap of $25 Billion. Total deposits are a little over $9 Trillion in the US.

Canada is CDIC insured up to $100,000 cdn, and if someone wants to find the cap for it, please post it.

I said that this may be the year that insurance companies start to go bankrupt, it would be hella something if the FDInsuranceC was the first one.

Reminder: Save your nickels, or better yet - buy a ton of US nickels.

Lmao. Cdic is a Joke. Look how much money is in their 'coffers' then look at total deposits at any ONE banking institution. Its a joke. A drop in the ocean.

A false meaningless safety illusion.

[Toma]

Solution is dead easy. Get out of the EU.

Its an unsustainable stupid concept designed to transfer wealth to the bankers.

[Xtrema]

Originally posted by Toma


Lmao. Cdic is a Joke. Look how much money is in their 'coffers' then look at total deposits at any ONE banking institution. Its a joke. A drop in the ocean.

A false meaningless safety illusion.

Yep, CDIC can only safe guard against small banks and credit unions. Anyone of the big 5 goes under, the whole thing falls like dominoes.

[dawerks]

Originally posted by Xtrema


Yep, CDIC can only safe guard against small banks and credit unions. Anyone of the big 5 goes under, the whole thing falls like dominoes.

IF one of the big 4 go under, then trust me, you won't have to worry about 'Canadian Money'.

[Beerking]

Originally posted by Feruk
Deal didn't go through. So I'm confused... is Cyprus going to default?

You are missing the point. There is no happy ending.


They want your money, they will stop at nothing to get your money. Money=debt

If you have not figured that out yet or do not know who THEY are........well, good luck.

[davidI]

Originally posted by Toma
Solution is dead easy. Get out of the EU.

Its an unsustainable stupid concept designed to transfer wealth to the bankers.

How is this a solution? No bailout. Banks go bust. Domestic currency becomes essentially worthless. People starve in the streets. Russian mobsters kill all those involved. Chaos ensues.

Okay, maybe that's a bit dramatic, but I really don't see leaving the EU an option at this point.

[BigMass]

Leaving the EU is not an option. The real solution would have been to not create the EU to begin with. Now it's way too late.

[Xtrema]

Originally posted by davidI


How is this a solution? No bailout. Banks go bust. Domestic currency becomes essentially worthless. People starve in the streets. Russian mobsters kill all those involved. Chaos ensues.

WWIII and more contents for history channel and movies.

[ZenOps]

Looks like they will be voting on "something" tomorrow.

It might be yet another modified version of a bank levy, or something even more drastic as the EU has upped its capital requirements by almost a full Billion euros on the failure of Cyprus to find a quick resolution.

http://www.reuters.com/article/2013/03/23/us-eurozone-cyprus-finmin-idUSBRE92M04320130323

Looks like it might be a flat 25% bank levy on deposits over $100,000.

HAH! I guess 10% was voted down because it wasn't enough.