Cyprus bank deposits are no longer secure. Watch the Euro run on banks.

[Syrenn]

It is a bad day to have your money deposited in a bank in the Mediterranean island nation of Cyprus. And it may just mean some bad days ahead for the rest of us.
Early Saturday, the nation reached an agreement with international lenders (http://www.washingtonpost.com/business/eurozone-finance-ministers-seek-to-complete-much-delayed-deal-on-rescue-package-for-cyprus/2013/03/15/b2b30392-8ddd-11e2-adca-74ab31da3399_story.html) for bailout help. Part of the agreement: Bank depositors with more than 100,000 euros ($131,000) in their accounts will take a 9.9 percent haircut. Even those with less in savings will see their accounts reduced by 6.75 percent. That’s right: Anyone with money in a Cypriot bank will have significantly less money when the banks open for business Tuesday than they did on Friday. Cypriots have reacted with this perfectly rational reaction: lining up at ATM machines to try to get as much money out in the form of cash before the money they have in their accounts is reducedhttp://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/16/why-todays-cyprus-bailout-could-be-the-start-of-the-next-financial-crisis/


This could get ugly.

Even withdrawing their money will not help.... the banks themselves are going to skim the bailout off the top of any money they have on deposit.

[Tyr-Ziu Saxnot]

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/16/why-todays-cyprus-bailout-could-be-the-start-of-the-next-financial-crisis/


This could get ugly.

Even withdrawing their money will not help.... the banks themselves are going to skim the bailout off the top of any money they have on deposit.

Just more stealing. Now they are doing it and announcing it too.

The peasants have no recourse of course....:laugh:

Welcome to the ever growing New World Order....:laugh2:--Tyr

[Robert A Whit]

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/03/16/why-todays-cyprus-bailout-could-be-the-start-of-the-next-financial-crisis/


This could get ugly.

Even withdrawing their money will not help.... the banks themselves are going to skim the bailout off the top of any money they have on deposit.

In the book Lords of Finance, the real life story (as is the above) is told of the collapse of Europe's bank system caused by the start of WWI. Though this is different, the book gives fair warning.

Bear in mind it is confidence or loss of confidence in Banks and the currency that can shoot the world economy down. We are not exempt from what happens in Europe.

[Voted4Reagan]

it will happen here...

[aboutime]

it will happen here...


I do believe I also warned everyone yesterday not to think IT CAN'T HAPPEN HERE.

[Kathianne]

How will this bode tomorrow?

http://www.nytimes.com/2013/03/20/business/global/cyprus-rejects-tax-on-bank-deposits.html?_r=0


Rejection of Deposit Tax Scuttles Deal on Bailout for Cyprus<nyt_byline> By LIZ ALDERMAN (http://topics.nytimes.com/topics/reference/timestopics/people/a/liz_alderman/index.html) </nyt_byline> Published: March 19, 2013 NICOSIA, Cyprus — Lawmakers rejected a 10 billion euro bailout package on Tuesday, sending the president back to the drawing board to devise a new plan that might still enable the country to receive a financial lifeline while avoiding a default that could reignite the euro crisis.


The bailout package, which would have set an extraordinary precedent by taxing ordinary bank depositors to pay part of the bill, led to street protests in this tiny Mediterranean country and set off a wave of anxiety across Europe.


As hundreds of demonstrators gathered outside Parliament chanting antigovernment slogans, lawmakers voted 36 against with 19 abstaining, arguing that it would be unacceptable to take money from account holders. One member who was out of the country did not vote.


Protesters angry at what they saw as a dictate by Germany to enforce harsh bailout terms wielded unflattering posters of Chancellor Angela Merkel, a day after one climbed to the roof of German Embassy and threw down the German flag.


The German finance minister, Wolfgang Schäuble, said Germany “regretted” the vote in Cyprus, but insisted the public outcry “cannot lead us to make an irrational, unsustainable decision.” He said the euro zone as a whole was “very stable,” but cautioned that the situation in Cyprus should not be underestimated. “It is a very serious situation,” he said.


Analysts raised the possibility of a bank run in Cyprus and a cutoff of financing to Cypriot banks from the European Central Bank (http://topics.nytimes.com/top/reference/timestopics/organizations/e/european_central_bank/index.html?inline=nyt-org) if the measure did not pass. It is still possible banks might not be able to open on Thursday, when a bank holiday is scheduled to end.


Michael Olympios, chairman of the Cyprus Investor Association, said Parliament’s rejection of the bailout deal “will buy us some time to see if we can come up with a better agreement.”

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