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As Forewarned, The Irish Savers Have Just Been "Cyprus'd", And There's MUCH MORE "Cyprusing" To Come

Reggie Middleton's picture




 

This is likely to be the biggest financial story of the month, a story that's bigger than Cyprus, and a story that you're not going to see in American mainstream media - not by a long shot. Let's take this from the top, for BoomBustBloggers were warned weeks in advanced. On Wednesday, 27 March 2013 I published EU Bank Depositors: Your Mattress Is Starting To Look Awfully Attractive - Bank Risk, Reward & Compensation wherein I explained that the situation of extreme loss faced by Cyprus bank depositors, savers and bondholders will not be a unique story - as excerpted:

The deposit accounts that you were getting just a few hundred basis points for have developed:

    1. Liquidity risks: The capital controls that weren't supposed to happen (see No Capital Controls In The EMU? Liar Liar Pants On Fire), happened! See Cyprus Banks Set To Reopen, To Serve As Glorified ATMs With A €300 Cash Withdrawal Limit
    2. Credit risks: Your so-called safe investments will suffer up to a 40% haircut! Mainstream Media Says Cyprus Salvaged By EU Deal, I Say Cyprus Is Sacrificed By Said Deal - Thrown Into Depression
    3. and Market risks: Demand depositors have forcibly purchased highly speculative synthetic call options with their haircuts that are unlikely to compensate anyone for anything!

The little app below calculates what return you should expect to receive to take on the risk of a potential 40% haircut. The second tab offers what recent Cyprus bank rates were. Do you see a disparity???

It's not just Cyprus either. The problems that plagued Cyprus banks plague banks in much larger nations within, and around the EU. From Ovebanked, Underfunded, and Overly Optimistic: The New Face of Sovereign Europe you see institutions that are literally too big to be handled safely...

The Banks Are Bigger Than Many of the Sovereigns

image015.pngimage015.png

 Now, the "Overbanked" article was posted back in 2010. That's right, I warned about the two Irish banks listed in the chart above THREE YEARS ago, You've had plenty of time to mover your money out! Speaking of those Irish banks, I warned the Irish again a few weeks ago as well - with specificity - in Global Banking Crisis - How & Why YOU Will Get "Cyprus'd" As This Bank Scrambled For Capital!!! Here, I focused on Anglo Irish, already nationalized and being wound down. I warned that there will be unhappy returns, if there would be any, just like Cyprus - as excerpted:

First Off Let's Make Bank Collapse Real...

To begin with, let's make this Cyprus thing real, by showing a live example of what happens when to a real small business that had the gall to bank with Laikie Bank, from the Bitcoin forum I excerpt a post that puts things into perspective, re: bank account confiscation:

Later that weekend in the Irish media... As If On Cue, BoomBustBlog Shenanigan Research Gets Real In Ireland

Anglo Irish Bank/IBRC bondholders will actually get some of their money back!

April Fools!!!

As if on cue, a day after my expose on Anglo Irish Bank and its shenanigans (see Global Banking Crisis - How & Why YOU Will Get "Cyprus'd" As This Bank Scrambled For Capital!!!), The Irish Business Post announces senior bondholders will get wiped out. That's right, a 100% loss! Zilch! Zero! Nada! Now, that's investing. That's getting "Cyprus'd", plus some!!! From Businesspost.ie: IBRC senior bondholders to be burned

anglobondwipeout copyanglobondwipeout copy

Of course, the story doesn't end with the bondholders. Exactly as anticipated in the articles mentioned above, and as published in the Irish mainstream media over the weekend...

irish pension haircuts copy copyirish pension haircuts copy copy

As you can see, this is actually MUCH WORSE than the deal the Cypriots got. These Irish pensioners are facing a total wipeout - 100% LOSS!!!

If you're not disenfranchised, yet, hold on... It get's worse, much worse. The Irish Examiner published this today... 

ECB gags State on IBRC liquidation

The ECB has gagged the Government from releasing any information in relation to the liquidation of the former Anglo Irish bank, IBRC. A senior official in the Department of Finance told the Irish Examiner they were under strict instructions from the ECB not to release any details to the public. “What they [ECB] have said from an early stage is that if there is any release, at all, then all negotiations are off. They do not want to discuss this in any forum, other than that of a member state and the ECB council,” he said.  The department has received about 16 freedom of information requests in relation to the IBRC liquidation and is now considering adopting a policy position that would allow it to refuse all applications for the release of information. 

Sinn Féin finance spokesman Pearse Doherty said the decision to liquidate IBRC was one of the biggest ever made by the State and he was concerned certain firms may have used insider information to secure payments. “The minister has refused several requests from me for information pertaining to the weeks and months before the event, specifically concerning whether certain sources in the know used confidential information to fast-track invoices in anticipation of liquidation.

So there you have it. Unless you've been hearing a lot about Irish bank collapse lately, it seems if you don't hear it from Reggie Middleton and BoomBustBlog, you're probably not going to hear it at all - so says the powers that be.  

It's not just Anglo Irish Bank, either. I've warned about several other Irish banks. Here's another one I feel likely to give Irish savers a nasty surprise...

 

You see, the banks can get away with this fleecing because the common person doesn't get a hold of my information and analysis very often, at least not until it's too late. But...... Guess what happened in the Irish mainstream media over the weekend, in the Irish Sun, the most popular rag on the most popular day....

SUN-SUN-PAGES-NEWS-MONEY-6066 copy copy

Subscribers, can download ALL documents supporting shenanigans by these banks (click here to subscribe):

For my US readers who feel this has very little to do with them, I query...

What Should The US Do If One Of The Biggest Banks In Ireland Blatantly Defrauded US Investors?

fraudfraud

For my UK readers who may be a little on the apathetic side...

I Illustrate How The Irish Banking Cancer Spreads To The UK Taxpayer And Metastasizes Through US Markets!

The app below allows the UK Taxpayer to calculate for themselves exactly what their individual contribution (pro rata) is to the government bailout of RBS.

I've taken the liberty of pre-populating the input fields for you, but if you don't agree with the numbers then by all means insert your own!

Other hard hitting pieces on the resurgent EU banking crisis

 

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Tue, 04/23/2013 - 12:47 | 3488689 THE DORK OF CORK
THE DORK OF CORK's picture

Whoever is in control of these countries does not give a damn for the real physical economy.

 

The game is all about extraction.

 

On the Irish economy site a few years ago I pointed out that the Golden Vale ( the biggest  and most productive dairy area in the country) needed a rail hub / spur in the town of Cahir via Waterford Port so as to transport feed and fertilizer as truck shipping costs will become too expensive relative to the now limited cash flow of farmers.........

 

Well look what has happened now.

 

"One 70-cow farmer said he is down €21,000 over the past 70 days alone. His fodder costs have spiralled. Ration is 25% dearer, and his usage is up 50%, while his milk output has halved. Thus, he has no income to pay his mounting debts"

 

http://www.irishexaminer.com/text/ireland/cwcwsnkfsnau/

 

More Agri rail hubs are needed in areas such as  Silvermines rail spur  and perhaps somewhere in the midlands.

Tue, 04/23/2013 - 12:36 | 3488636 THE DORK OF CORK
THE DORK OF CORK's picture

In Europe when you can no longer consume mercantile products like a good Imperial market you become worth more dead then alive.

 

"The Core" then wishes your energy ration so that they can use it to export to trade deficit US ,UK & pegged China,

 

 

Provisional Irish energy balance for 2012 published this past week.

http://www.seai.ie/Publications/Statistics_Publications/Energy_Balance/2012_Provisional_Energy_Balance.pdf
(detailed breakdown of consumption in transport , heating etc yet to be published.)

Of course massive (probably the biggest % decline in Europe) drops are again seen – especially oil consumption.

Total primary energy supply oil (inc non energy)
Y2005 : 9 ,586 KTOE (Peak)
Y2010 : 7,690 KTOE
Y2011 : 7,101 KTOE
Y2012 : 6,244 KTOE !!!!

So we lost close to a million tons of oil consumption in one year ! ( 0.857 MTOE)

Nat Gas consumption also rolling over recently
Y2010 : 4,704 KTOE
Y2011 : 4,138 KTOE
Y2012 : 4,018 KTOE

Coal consumption up just a bit but no where near 1990 levels when we has much less oil & gas central heating.
(The only coal fired electricity plant in the south of Ireland came on stream around 1987 ~)
Y1990 : 2,085 KTOE ( max post 1990)
Y2009 : 1,154 KTOE (min)
Y2010 : 1,240 KTOE
Y2011 : 1,264 KTOE
Y2012 : 1,482 KTOE

Milled (industrial) peat up a bit these last couple of years.
Sod peat down (Euro boys & girls banning harvesting ?)

Milled peat
Y1992 : 804 KTOE (peak)
Y2010 : 643 KTOE
Y2011 : 619 KTOE
Y2012 : 676 KTOE

Sod peat
Y1990 : 617 KTOE (post 1990 peak)
Y2010 : 165 KTOE
Y2011 : 158 KTOE
Y2012 : 128 KTOE

 

 

Irish Gasoline (Petrol) consumption
Y1990 : 575 KTOE
Y1994 : 676 KTOE
Y2007 : 1250 KTOE (peak)
Y2011 : 972 KTOE
Y2012 : 670 KTOE

Irish Diesel / Gasoil consumption
Y1990 : 1,096 KTOE
Y2007 : 2,744 KTOE (peak)
Y2011 : 1,958 KTOE
Y2012 : 1,782 KTOE

Jet kerosene
Y1990 : 355 KTOE
Y2006 : 1,278 KTOE (peak)
Y2012 : 765 KTOE

Total oil demand now down a Post Soviet Cuban like 34 % from peak.

It makes a mockery of a IEA report on Ireland issued less then a year ago.

 

See section 9 oil.
Local government / landlord management apparatus declared that it expects oil to decline by 5% to 2020……….
Its going to be one hell of a recovery so – they must expect a China collapse

 

 

Tue, 04/23/2013 - 12:28 | 3488624 GoldRetriever
GoldRetriever's picture

Boy, the Land of Green has really drawn Reggie's ire of late. You'd think they're after his lucky charms!

Tue, 04/23/2013 - 12:17 | 3488566 nowhereman
nowhereman's picture

Reggie; I was wondering what effect this all has on the Insurance industry.  My gut tells me that people who put their faith in this option are about to get hosed as well.  Any insight on this area?

Tue, 04/23/2013 - 12:07 | 3488492 CheapBastard
CheapBastard's picture

 

 

 

"Paranoia is knowing all the facts."

 

- Woody Allen

Tue, 04/23/2013 - 11:42 | 3488361 RMolineaux
RMolineaux's picture

Reggie  -  Your research is very good.  You would reach a wider audience if you could manage to soft-pedal the smart-ass and self promotion.   Best,  Robert J Molineaux, Sr.

Tue, 04/23/2013 - 20:48 | 3491047 beefman
beefman's picture

Reggie  -  Your research is very good.  You would reach a wider audience if you could manage to soft-pedal the smart-ass and self promotion.   Best,  Robert J Molineaux, Sr.

 

Translation: You must not offend white america with your Intelligence!

Tue, 04/23/2013 - 10:45 | 3488050 Northeaster
Northeaster's picture

As long as there's no risk of any of that happening here in The United States, no one cares. Seriously, what percent of Americans put domestic and foreign news/data financial on-goings ahead of American Idol, or at all?

Tue, 04/23/2013 - 10:33 | 3488018 sharonsj
sharonsj's picture

This is why I believe in only owning hard assets (land, antiques, jewelry) and why prepping is looking real good....

Tue, 04/23/2013 - 11:20 | 3488211 DaddyO
DaddyO's picture

+1

I'm with you, sister!!

DaddyO

Tue, 04/23/2013 - 10:26 | 3487992 zanez
zanez's picture

Spelling errors get in the way of  any possible good information. I couldn't read past the first paragraph. If a person can't type and/or spell, why would I care for what they have to say?

Tue, 04/23/2013 - 12:05 | 3488480 Panafrican Funk...
Panafrican Funktron Robot's picture

"why would I care for what they have to say"

People who made the decision to go long the longer dated puts in AAPL based on his research back when it was trading $700+, and are now in the market for a boat that a family would be comfortable living on, tend to care what he has to say.

Tue, 04/23/2013 - 11:56 | 3488435 Dickweed Wang
Dickweed Wang's picture

 In the Dickweed world you are what we call "A Butt-Plug" . . . . . .

Tue, 04/23/2013 - 11:19 | 3488193 DaddyO
DaddyO's picture

So are you a Douche or a Douche'?

DaddyO

Tue, 04/23/2013 - 11:13 | 3488160 The Abstraction...
The Abstraction of Justice's picture

Your criticism does not read like Tennyson, so I stopped reading past the first sentence.

Tue, 04/23/2013 - 11:03 | 3488113 HermesHiccups
HermesHiccups's picture

Dude, go back to teaching high school english, language (written and verbal) is meant to communicate if he is able to get his message across than he is successful.

Would you stay in a burning building if the boy who called fire did not use the proper syntax?

Tue, 04/23/2013 - 11:02 | 3488108 Reggie Middleton
Reggie Middleton's picture

You should read your statement over to yourself. It sounds ludicrous. You come to a page that details valuable information about you potentially losing your life savings, and you say...

Spelling errors get in the way of  any possible good information. I couldn't read past the first paragraph. If a person can't type and/or spell, why would I care for what they have to say?

So, you have the possiblity of rescuing what you have worked for your entire life, but you throw that possibility away because you noticed typos in the first paragraph??? You're probably right, you wouldn't care what I have to say for what I have to say is obviously not for people like you. Happy banking, my friend! The ECB relies on patrons such as you.

Thu, 04/25/2013 - 00:06 | 3496092 MeelionDollerBogus
MeelionDollerBogus's picture

indeed. I see no more than a minor annoyance with red-squiggles telling me you didn’t spell-check. COMPUTERS automatically check spelling. REGGIE MIDDLETON busts his ass checking on deceptive criminal & fraudulent and thieving activity ‘legalized’ by governments. I’d rather know Reggie Middleton spends his time routing out fraud, crime & total losses than worrying about what a spell-check can do if I must choose one over the other. Thanks again, Reggie

Wed, 04/24/2013 - 13:06 | 3493398 DC3
DC3's picture

Reggie > Zanez

Tue, 04/23/2013 - 12:12 | 3488530 gwar5
gwar5's picture

Reggie, great job on another piece.  Thanks for all the information you have been sharing! 

Tue, 04/23/2013 - 11:16 | 3488176 The Abstraction...
The Abstraction of Justice's picture

Mr Middleton, he is the classic troll. Look at his previous five posts (five is what he has managed in a year of membership).

 

Typical comment from him:

 

Chuck Norris sucks dick for cab fare, then walks home.

 

No spelling errors there.

Tue, 04/23/2013 - 10:14 | 3487947 tradertim
tradertim's picture

do european banks have safe deposit boxes like in the usa?

the reason i ask; if they do, then a depositor in europe with say, $500,000 should have the bank issue the depositor 50 separate checks for $10,000 each and put those into a safe deposit box. then as said depositor needs money, deposit each check back into the bank for needed purposes. so maybe the most you could ever lose is $10,000. hopefully the other checks in the safe deposit box can't be touched.

Thu, 04/25/2013 - 00:07 | 3496098 MeelionDollerBogus
MeelionDollerBogus's picture

Foolish hope. These are thieves. Why trust a thief to steal one but not another source of your funds? WHY is the thief stealing? Respect for your property? Personal gain? Ask yourself & you will have the only answer you need.

Tue, 04/23/2013 - 12:24 | 3488609 misitu
misitu's picture

UK Safe Deposit Boxes are vulnerable

(1) Police raids

(2) Phasing out

Would not bother with Boxes in the UK

YMMV

Links available on request. The phasing out is recent, see Barclays. The raids were a year or so back, see Edgware (IIRC); horrendous.

Tue, 04/23/2013 - 16:32 | 3490063 DosZap
DosZap's picture

UK Safe Deposit Boxes are vulnerable

(1) Police raids

(2) Phasing out

Would not bother with Boxes in the UK

YMMV

 

This is true anywhere you haqve a SD box.PLUS, you must know that whatever you store there is not there, if it dissapears(and you eat the loss).

Tue, 04/23/2013 - 10:27 | 3487996 Sudden Debt
Sudden Debt's picture

HAHAHAHAHA!!! Checks? :) really? :)

why not cash?

or gold?

if you're going to put it in a box anyway.

The checks need to come from a account... a account which could be balanced at zero.

Buy 15 rolls of gold ounces. Make them dirty with petrol and hide them at home in the crappiest place where nobody will look.

And if anybody finds them they'll see something dirty and won't touch it.

Thu, 04/25/2013 - 00:09 | 3496100 MeelionDollerBogus
MeelionDollerBogus's picture

Get a cat. Put them in the cat litter box. Seriously.

The metals can clean easily & if in plastic the plastic will protect the surfaces anyhow. Brings ‘dirty’ and “don’t touch this” to a whole new level :D

Tue, 04/23/2013 - 12:13 | 3488543 Panafrican Funk...
Panafrican Funktron Robot's picture

Composting piles are good too, particularly if you mix a lot of dog shit in there.  

Tue, 04/23/2013 - 13:07 | 3488811 ParkAveFlasher
ParkAveFlasher's picture

I hide mine in my colon.  Dirtiest place ever, but now I'm afraid the TSA will find it. 

#plzhelpcanhazhidinspot4au

Tue, 04/23/2013 - 10:20 | 3487970 Tebow
Tebow's picture

Dumbest idea ever.

Tue, 04/23/2013 - 10:14 | 3487944 Mandel Bot
Mandel Bot's picture

I hope you noticed the demonstration of the naked power of the ECB giving orders to the Irish Government.

"The ECB has gagged the Government from releasing any information in relation to the liquidation of the former Anglo Irish bank, IBRC. A senior official in the Department of Finance told the Irish Examiner they were under strict instructions from the ECB not to release any details to the public."

Tue, 04/23/2013 - 09:54 | 3487862 falak pema
falak pema's picture

cyprus has nice trees, being cyprused is climbing a tree and surprising the lassie who walks by. 

I guess those lassies better learn to fly! 

Tue, 04/23/2013 - 09:34 | 3487765 Sudden Debt
Sudden Debt's picture

It's unbeliefably hard to convince people to start protecting themselves against all of this.

If you say anything gloomy they call you a pessimist but what if this pessimist turns out to be a realist...

Thu, 04/25/2013 - 00:10 | 3496116 MeelionDollerBogus
MeelionDollerBogus's picture

when I said it I was told it isn’t happening and in the face of silver, a sheet of wafer bars right there in front of us, I was told that mutual funds have a guaranteed return and why don’t I use them? Just flabbergasted.

Tue, 04/23/2013 - 12:23 | 3488606 gwar5
gwar5's picture

UR so right SD.

 

I have a friend who is an 'informed' airline pilot who had been following Schiff, et, al. the last couple of years. He had been on his way to getting a self directed IRA to move some 401K money into a safer harbor.

Now, not so much. I called him after Cyprus only to find out that he knew nothing about it, or anything else that had been going on the last year. He had not taken any action on anything the last 6 months... said the market and the 401K had been doing great and he didn't want to change anything.

I give up.

 

Tue, 04/23/2013 - 09:40 | 3487796 RSBriggs
RSBriggs's picture

Then when everything all goes to shit, you'll be blamed for causing it somehow, what with your negative attitude and all....

Thu, 04/25/2013 - 00:11 | 3496118 MeelionDollerBogus
MeelionDollerBogus's picture

I’ve heard that to my face too, that the entire economy depends on my attitude and willingness to throw all my money into it. Normally we call that a PONZI SCHEME or CON-GAME.

Tue, 04/23/2013 - 11:30 | 3488267 Boston
Boston's picture

And if you own (or in my case, owned......until an unfortunate boating accident befell me) any gold, then you will be arrested for being a terrorist.

Tue, 04/23/2013 - 09:27 | 3487703 css1971
css1971's picture

Reggie,

Google "Carr vs Carr". It was the case in the UK in 1811 which explicitly set the relationship between a bank depositor and the banker. It's quite clear. The money you put in a bank, is the banker's. You're just a creditor. Been this way for 200 years.

Tue, 04/23/2013 - 12:17 | 3488564 Panafrican Funk...
Panafrican Funktron Robot's picture

The other thing to keep in mind is that your "insured" deposits are functionally not insured.  I don't have good data in front of me regarding European deposit insurance, but in the US, it's about $35-$40 billion in FDIC insurance backing about $9.5 trillion in deposits.  That's not insurance.

Tue, 04/23/2013 - 12:40 | 3488680 gwar5
gwar5's picture

Totally agree. But there is going to be a scapegoat to deflect blame from the banker and politician lies.  

 

Under the current regime, seems certain the politicians will use banker confiscations to scapegoat 'greedy' unscathed depositors by demanding they pay their 'fair share' via moar redistribution scheme. It will further disorient and divide the masses. 

Tue, 04/23/2013 - 09:50 | 3487844 DosZap
DosZap's picture

 It's quite clear. The money you put in a bank, is the banker's. You're just a creditor. Been this way for 200 years.

 

Correctomundo, you are LOANING them your money.

Tue, 04/23/2013 - 11:28 | 3488250 laboratorymike
laboratorymike's picture

One technical question here: At one time, weren't checking accounts fee-based, and there was an understanding that you were paying the bank for safe keeping of the money, whereas CDs and savings accounts were a loan to the bank? I know that isn't the case now.

Tue, 04/23/2013 - 11:32 | 3488277 DosZap
DosZap's picture

One technical question here: At one time, weren't checking accounts fee-based, and there was an understanding that you were paying the bank for safe keeping of the money, whereas CDs and savings accounts were a loan to the bank? I know that isn't the case now.

 

May have been,(used to be rate wars to get depositors) but it still doesn't change the facts that your loaning them your money.And therin lies the danger of the system.

Tue, 04/23/2013 - 09:20 | 3487673 piceridu
piceridu's picture

Reggie, awesome work! What's hidden off balance sheet on let's say Italian banks or even US banks...What is keeping this cancer from spreading?

Tue, 04/23/2013 - 09:18 | 3487666 css1971
css1971's picture

Shoulda bought gold.

Tue, 04/23/2013 - 09:13 | 3487632 Tebow
Tebow's picture

Good thing I have all my cash in CD's where its safe!

Thu, 04/25/2013 - 00:12 | 3496124 MeelionDollerBogus
MeelionDollerBogus's picture

I’m going to further increase my savings security by storing them in the Shitcoinz Bank of Sarc!

Thanks Banker-Jesus for setting us all straight.

Tue, 04/23/2013 - 11:18 | 3488186 The Abstraction...
The Abstraction of Justice's picture

Credit Defaults?

Tue, 04/23/2013 - 09:33 | 3487752 JohnGaltsChild
JohnGaltsChild's picture

Hope you mean compact discs.

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