Cyprus Bank Deposits Seized

[GeorgeK]

Anyone here from Cyprus, or holding assets there?

If you have a bank deposit in Cyprus, you're suddenly poorer:

http://www.bbc.co.uk/news/world-europe-21814325

People in Cyprus with less than 100,000 euros in their accounts will have to pay a one-time tax of 6.75%, Eurozone officials said.

Those with greater sums will lose 9.9%.

Cypriot bank officials quoted by AP news agency said depositors could access all of their money except the amount set by the levy.

Some additional context in a good article here:

http://news.sky.com/story/1065618/cyprus-savings-raid-crosses-financial-rubicon

Truly a scary precedent. Make sure that your savings/deposits are being held in a safe jurisdiction.

 

[katherine]

Cyprus used to be/is some sort of offshore banking location right ?
This move isn't going to foster trust in the banking system or the euro.

Now there something to consider:
If you keep money in savings accounts you are getting poorer too, because you are already being raped through inflation. Not to the tune of 6.5% to 9.9% overnight, but that should normally be the actual depreciation rate after a few years of passive holding. I'm not an economist though, so I will leave the exact calculation to you.

As they say, move your money out of the country, before the country moves the money out of you.

 

[Makis77]

It seems like they didnt have any other choice.

Whats more interesting is that Cyprus (is) was a tax heaven for many companies, many wealthy Russians kept their money in banks located in Cyprus.

This move has a double target, the obvious and the hidden one. Hidden one is making Cyprus banks less attractive than they used to be forcing that way investors to move their money out of there.

Thats even more destructive for Cyprus than anything else.

Question: I wonder where all those investors will go to save and secure their money, Italy, Greece, Spain, Portugal, France, Ireland and Cyprus is out of the question. Germany maybe?

 

[Theo]

Imagine, if the "FDIC secured" meant nothing. E.g. you woke up tomorrow and the federal government used 10% of your money to pay off banks in distress.

This is a major sociopolitical issue. It sets a precedent, that a 3-member committee aka "troika" from Germany and Holland, can step in and demand earth and water. Where is national pride and sovereignty? Those politicians in Cyprus that will vote for the measures tomorrow, will be tagged as traitors. Plus they chose the particular day to enforce this financial pillaging, as Monday is a bank holiday and banks are closed. ATMs were emptied, it's like a war zone.

The global markets will react strongly to this on Monday.

 

[katherine]

I'm afraid FDIC secured is just a label, the US is technically bankrupt too.

The EU countries that are being bailed out are responsible for their woes because they have run into unsustainable debt levels and permanent budget deficits.
Anyway, I believe all EU countries (of which Cyprus is a member) have deposit guarantee schemes. It's the equivalent of FDIC but it doesn't stop the government from stealing.

 

[TheLegendaryJP]

It seems like they didnt have any other choice.

Whats more interesting is that Cyprus (is) was a tax heaven for many companies, many wealthy Russians kept their money in banks located in Cyprus.

This move has a double target, the obvious and the hidden one. Hidden one is making Cyprus banks less attractive than they used to be forcing that way investors to move their money out of there.

Thats even more destructive for Cyprus than anything else.

Question: I wonder where all those investors will go to save and secure their money, Italy, Greece, Spain, Portugal, France, Ireland and Cyprus is out of the question. Germany maybe?

Gold and Silver.

On a side note they estimate 20-30%+ of all balances in Cyprus are from Russians, Russian mob, dirty money. Them I don't care about, it is the good people who saved or did well that will pay, disgusting and scary. Oh and btw, US gov and Fed just realized they have an excess on deposit in US banks, $2 Trillion more than debt...tempting eh lol

Gold and Silver, your government WILL rob you, it is only a matter of time.

 

[katherine]

FDIC is no protection against failure of the state.

The Cypriot banking sector, relying largely on deposits, is more than seven times the size of the island's economy - which means that if the banks go bust, the state cannot cover their losses.

http://euobserver.com/institutional/119531

That reminds me of another similar country. What was it ? I think it was Iceland.

 

[Gerry]

Cyprus is claiming to be a poor state and wants an EU bailout.

Legendary JP is correct in his assessment. The ones that really suffer are the good people of Cyprus. And the EU is correct in wanting to know where is all the money going to and why is Cyprus needing a bailout when the banks has trillions in assets.

Is the EU suddenly bailing out the wealthy? Hmm...reminds me of the trillions in bailouts of 2007 and 2008 US administration.

 

[Tedgeman]

Thats astute JP, man these are tough times for folks.

Gold and Silver.

On a side note they estimate 20-30%+ of all balances in Cyprus are from Russians, Russian mob, dirty money. Them I don't care about, it is the good people who saved or did well that will pay, disgusting and scary. Oh and btw, US gov and Fed just realized they have an excess on deposit in US banks, $2 Trillion more than debt...tempting eh lol

Gold and Silver, your government WILL rob you, it is only a matter of time.

 

[ilovedomains]

Some great cartoons about this at zerohedge.com...
http://www.zerohedge.com/news/2013-03-22/cyprus-cartoon-catalog

 

[Theo]

It all started with Goldman Sachs and the big hedge funds. That, combined with the lack of any due process to combat the reselling of junk bonds within the Eurozone, is yet another example of how Germany has kept its course towards the 4th Reich. How's the new millennium looking so far? Personally, I miss the 80s.

 

[katherine]

So it's Germany's fault ?

 

[Theo]

So it's Germany's fault ?

Germany's role is well defined, as is that of the IMF and the major US banks. Both Greece and Cyprus were used as both the scapegoat and the guinea pigs of this financial clusterphuck.

 

[Gerry]

And Greek banks are to take over the Cypriot branches?

Piraeus Bank of Greece was to take over the operations in a deal that a source close to the matter said involved the transfer of 17 billion euros of loans and 14 billion euros of deposits, Reuters reported.

 

[Theo]

The financial footprint of Greek banks is many times that of the Cypriot ones. Keep in mind that without a degree in finance, most people don't understand wtf is going on. Perhaps GeorgeK could shed some light and explain this in layman's terms.

 

[lordbyroniv]

I wish people would listen up Acro. I tried my darnedest with http://www.dnforum.com/f557/great-depression-2-its-effect-domain-name-market-thread-326959.html to educate dnf on where we were headed but most do not want to listen

Exponential debt. created by UNCONSTITUTIONAL PRIVATE BANKS will be the end of whatever supposed freedoms we still do have

What is happening in Europe will reach the shores of America in due time

The propaganda is so thick here in America that trying to have a conversation with people is almost impossible.

And supposedly, I am the tinfoil hat conspiracy nut :?:

Better wake up Amerika ....your destiny awaits !!!!!!!!!!!!!!!!!!!

 

[lordbyroniv]

Death by inflation (US).

Death by confiscation (Cyprus).

Death by repression (EU).

Death by default (just takes a domino to fall.)

 

[lordbyroniv]

http://kingworldnews.com/kingworldn...fficial_-_Banks_Move_To_Enslave_Humanity.html

 

[Raider]

So it's Germany's fault ?

It's almost like blaming the bank when you don't pay your mortgage.

I miss the 80s.

Ah, the Reagan years.. Where we went from stagflation to peace and prosperity, as well as smaller Government.

 

[katherine]

What prosperity ?
Under Reagan the US debt soared to record levels.
Borrowing is just an illusion.