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As Forewarned, The Irish Savers Have Just Been "Cyprus'd", And There's MUCH MORE "Cyprusing" To Come
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:
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- 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
- 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
- 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???
The Banks Are Bigger Than Many of the Sovereigns
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
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 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....
Subscribers, can download ALL documents supporting shenanigans by these banks (click here to subscribe):
EU Bank Capital Confusion, Part 3 - It's BIG! (professional and institutional subscribers only)
Ulster Bank/RBS Supporting Charge Documents
EU Bank Capital Confusion, Part 2 - Malarkey
EU Bank Capital Confusion, Potential Failure
What Should The US Do If One Of The Biggest Banks In Ireland Blatantly Defrauded US Investors?
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
- Is The Cypriot Government Crazy Or Do They Really Fear Bankers That Much?
- Mainstream Media Says Cyprus Salvaged By…
- Economic Depression Is The New Success
- The Canadian Government Offers "Bail-In"…
- EU Bank Depositors: Your Mattress Is Starting To Look Awfully Attractive - Bank Risk, Reward & Compensation
- Global Banking Crisis - How & Why YOU Will Get "Cyprus'd" As This Bank Scrambled For Capital!!!
- As If On Cue, BoomBustBlog Shenanigan Research Gets Real In Ireland, Why Aren't These Guys Knocking On My Door?
- Are You About To Get Cyprus'd in Ireland? When A Single Word's Worth Billions Of Euros...
- Dear Ireland (& AIB), Haven't We All Learned The Problem Is Insolvency, Not Liquidity?
- Oh No! Is It Possible? A 3rd Irish Bank With Hidden Charges Not Revealed In Its Annual Reports?
- Ireland, You May Very Well Be Bust & I Make No Apologies For What I'm About To Show You
- The Next Leg Of That Counterparty Led European Bank Run Has Put On It's Running Shoe
- I Illustrate How The Irish Banking Cancer Spreads to UK Taxpayer & Metastizes Through US Markets
- Allegations Of Big Irish Banks Operating…
- Readers Respond With Evidence That AIB (…
- advertisements -


Of course not silly, Compact Disc's don't pay me big time basis points like my 6 month CD's do!
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.
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)
Here ya go: http://en.wikipedia.org/wiki/Humour
Good thing I have all my cash in CD's where its safe!
I hope you forgot the /sarc afterwards?
If you have to add /sarc you're not doing it right.
Are you implying that CD's aren't safe?
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.
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.
Come on man, thats pure crazy talk!!! I have FDIC insurance.
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.)
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).
;)
HA HA HA - SARC - SARC !!!
Institutional Risk bitcheez!
What is your point?
I do not see how this effects me.
People who lose it all will hunt you down to take what you have for being self-protected. Now do you see?
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
:)
He is just pumping is paid blog.
This one made the most sense, which says alot about the quality of the comments.
Risk bitcheez!
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).
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.
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.
The national government insures the deposits and it's a requirement of being part of the EU.
Everything's allrighty then.