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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 - 10:09 | 3487939 Tebow
Tebow's picture

Of course not silly, Compact Disc's don't pay me big time basis points like my 6 month CD's do! 

Tue, 04/23/2013 - 11:29 | 3488254 DosZap
DosZap's picture

don't pay me big time basis points like my 6 month CD's do!

After this comment I am convinced your either a Troll,or totally ignorant of what's happening in our world.

Thu, 04/25/2013 - 00:12 | 3496125 MeelionDollerBogus
MeelionDollerBogus's picture

It’s called /sarc and you need ZeroHedge-Vision to see the special font-colour being employed.

(zoinks, no wonder MDB nets so many of ‘em)

Wed, 04/24/2013 - 04:50 | 3491938 BigJim
Tue, 04/23/2013 - 09:17 | 3487650 DosZap
DosZap's picture

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

I hope you forgot the /sarc afterwards?

Tue, 04/23/2013 - 10:59 | 3488106 Melin
Melin's picture

If you have to add /sarc you're not doing it right.

Tue, 04/23/2013 - 09:21 | 3487685 Tebow
Tebow's picture

Are you implying that CD's aren't safe? 

Tue, 04/23/2013 - 09:46 | 3487833 DosZap
DosZap's picture

Are you implying that CD's aren't safe?

No,I am telling you they are not.

And even if your Bank had to Bail IN or not, your still going to lose control over any funds in /Checking accts/CD's,IRA's,and 401k rollovers, and 401 k's at your work before this plays out.I fully expect the Feds to use the 9 trillion in deposits to bankroll the UST's and Bonds.(with OUR retirement funds).This is no secret, they have had panels in D.C. talking about seizing these deposits(for several years) and doling out your own money as they see fit.

Tue, 04/23/2013 - 11:45 | 3488384 Touch_It
Touch_It's picture

I agree that there is a risk that our 401k's may be tapped/manipulated/taxed in the future.  I'm just hesitant to incur the penalties.

I've been toying with the idea of concentrating all of my 401k balance in a long SP500 fund and taking a short SP500 position outside of the 401k plan in anticipation of the pending drop.  This  will allow me to move some $'s out of the 401k into an after tax account.  I have not worked out the most efficient way to do it (options?).  This would allow me to avoid the 10% penalty on some of the balance.

 

 

Tue, 04/23/2013 - 10:07 | 3487922 Tebow
Tebow's picture

Come on man, thats pure crazy talk!!! I have FDIC insurance.

Tue, 04/23/2013 - 11:23 | 3488229 DosZap
DosZap's picture

Come on man, thats pure crazy talk!!! I have FDIC insurance.

Your deposits are currently insured to 250k. FDIC has MAYBE 27 Bilion to cover 9 Trillion in deposits,like your odds?.Not me.Whicle I agree that funds (right now at or under that amt) would be covered, UNLESS we had several TBTF Banks go down,then all bets are off.IF you had over 250k, you would lose ALL of it over the insured amount.

Now the seizure issue, is like I said,a plan they have been talking about for 2-3 yrs.That's a whole nuther ballgame.Either way, you lose control of your funds.Got it in CD's?, making .95%APR,maybe 1.5%+/-?.Well your losing if you had say a 100k in your CD, around 10k per year of purchasing power due to inflation that is not reported.And what do you get in interest for that 100k for a year?, roughly a $100.00.( now that's crazy.)

Tue, 04/23/2013 - 12:19 | 3488578 Panafrican Funk...
Panafrican Funktron Robot's picture

Relax good sir.  Guys that use the posting name "Tebow" with the Jesus image, very likely fucking around (and also very likely in the know already).  

Tue, 04/23/2013 - 22:07 | 3491272 Tebow
Tebow's picture

;)

Tue, 04/23/2013 - 10:30 | 3488005 HalinCA
HalinCA's picture

HA HA HA - SARC - SARC !!!

Tue, 04/23/2013 - 09:03 | 3487574 paint it red ca...
paint it red call it hell's picture

Institutional Risk bitcheez!

Tue, 04/23/2013 - 09:00 | 3487559 Stonecold
Stonecold's picture

What is your point?

 

Tue, 04/23/2013 - 09:54 | 3487868 Stonecold
Stonecold's picture

I do not see how this effects me.

Thu, 04/25/2013 - 00:14 | 3496129 MeelionDollerBogus
MeelionDollerBogus's picture

People who lose it all will hunt you down to take what you have for being self-protected. Now do you see?

Tue, 04/23/2013 - 11:07 | 3488128 smlbizman
smlbizman's picture

if you cant see it, maybe 1 of the following reasons explains it:

         1) you are stevie wonder

         2) you do not have any retirement funds

         3) you are very young

         4) you have not been paying attention

         5) or you are looking for attention

Tue, 04/23/2013 - 12:34 | 3488658 player333
player333's picture

:) 

Tue, 04/23/2013 - 09:55 | 3487872 Stonecold
Stonecold's picture

He is just pumping is paid blog. 

Tue, 04/23/2013 - 10:47 | 3488062 Shevva
Shevva's picture

This one made the most sense, which says alot about the quality of the comments.

Tue, 04/23/2013 - 08:25 | 3487427 eddiebe
eddiebe's picture

Risk bitcheez!

Tue, 04/23/2013 - 09:15 | 3487647 DosZap
DosZap's picture

Mr. Middleton,

Thanks for your article, as for this comment.

Note: It is unclear whether the accounnts are insured and protected up to 100,000 euro or whether accounts over 100,000 are to be considered uninsured.

The Cypress depositors were insured(after a lot of bitching, and because the PTB feared this would set off a European run on ALL banks in every country,(so they had to recant on the 6.35%+/- haircut for 100k EU depositors and below.)

The Uninisured took the 40% haircut(at least the ones that were not allowed to remove their excess a week or two earlier).

Tue, 04/23/2013 - 11:47 | 3488391 Thisson
Thisson's picture

This is the worst form of insurance: "conditional" insurance - it only applies as long as the politicians consider it in their best interest.  Loo at Cypress: they wanted to take the money; they planned to take the money; they changed their mind only because they thought it would make their position worse.  They had no regard for the depositors.

If you put your money in a bank (or safety deposit box), you are relying on a series of worthless promises.

Tue, 04/23/2013 - 16:28 | 3490048 DosZap
DosZap's picture

This is the worst form of insurance: "conditional" insurance - it only applies as long as the politicians consider it in their best interest.

Another issue here is most people think that IF their bank goes teats up, then the FDIC will make them whole (up to limit asap), not true.They have UP to a year to make you whole.

Tue, 04/23/2013 - 09:21 | 3487683 css1971
css1971's picture

The national government insures the deposits and it's a requirement of being part of the EU.

Tue, 04/23/2013 - 09:52 | 3487857 ironsky
ironsky's picture

Everything's allrighty then.

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