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Germany And IMF's Initial Deposit Haircut Demand: 40% Of Total
As the President of Cyprus proclaims to his people that "we' should all take responsibility as his historic decision will "lead to the permanent rescue of the economy," it appears that the settled-upon 9.9% haircut is a 'good deal' compared to the stunning 40% of total deposits that Germany's FinMin Schaeuble and the IMF demanded. This action, his statement notes, enables the rescue of 8,000 banking sector jobs and ensuring the liquidity of the banks, "allowing the economy to proceed decisively to a new beginning." Ekathimerini reports," this is the first time in the eurozone that a levy has been imposed not on the interest of bank accounts but on the capital itself," and was the only way to bridge most of the the gap between the EUR17bn Nicosia needed and the EUR10bn the ESM was offering, though tax on interest in Cypriot banks will also rise to 20-25%. It is the 40% haircut requirement that concerns us the most as clearly going forward that means other nations, starting Monday (or Tuesday given national holidays) see deposit outflows surge, as the willingness to take such steps is now painfully clear.
Statement by the President of the Republic of Cyprus,
It is well known that the deep economic crisis and the state of emergency in which the country has found itself did not come about in the last fortnight since we have undertaken the administration of the country.
The state of emergency and critical nature of the times do not allow me, as they do not allow anyone, to embark on a blame game.
In the extraordinary meeting of the Eurogroup, we faced decisions that had already been taken and came across faits accomplis through which we were faced with the following dilemmas:
On Tuesday, March 19 we would either choose: the catastrophic scenario of disorderly bankruptcy or the scenario of a painful but controlled management of the crisis, which would put a definitive end to the uncertainty and restart our economy.
A possible choice of the catastrophic scenario option would have the following consequences:
- On Tuesday, March 19, immediately after the holiday weekend, one of the two banks in crisis would cease to operate, since the European Central Bank, following the decision already taken, would terminate the provision of liquidity. The second bank would suspend its work, and neither could avoid collapse. Such a phenomenon would instantly lead 8.000 families to unemployment.
- The State would be obliged to compensate depositors in response to the obligation regarding guaranteed deposits. The capital required in such a case would amount to about 30 billion euros, which the State would be unable to pay.
- A proportionate amount corresponding to the deposits of thousands of depositors for deposits over 100.000 Euro, would be led to a vicious cycle of asset liquidation, and these depositors would suffer losses of over 60%.
- Such an uncontrolled situation would push the whole banking system into collapse with all the attendant consequences.
- Thousands of small and medium enterprises, and other businesses would be driven to bankruptcy due to their inability to trade.
As a result of the above, the service sector would be led to a complete collapse with a possible exit from the euro. That, in addition to the national weakening of Cyprus, would lead to devaluation of the currency by at least 40%.
The second choice was the controlled management of the crisis, through the decisions taken and which can be summarized as follows:
- Ensuring the liquidity of the banks and the rescue of the banking system through their recapitalization.
- Rescuing 8.000 jobs in the banking sector and thousands of others which would be lost as a corollary of not maintaining the operations of banks.
- Total rescuing of deposits, with just the exchange of a small percentage of savings with shares of the two banks. Currently, these shares do not have their full value, but with the economic recovery they will repay most it not all of the amount that will be cut.
- This option results in a drastic reduction of public debt, makes it manageable and sustainable and relieves future generations from the burden of repayment.
- It saves provident and pension funds and avoids taking other tough measures such as wage and pension cuts that were put on the negotiations table.
- It avoids further recession and the risk of the vicious circle of a second memorandum.
We are not aiming to gloss over the situation. The solution chosen may be painful, but it was the only one that would allow us to continue our lives without adventures. It's a decision that leads to the historic and permanent rescue our economy.
In the next few hours we will all have to take responsibility. Tomorrow I will address the Cypriot people.
...
Already bank customers are gathering outside major and cooperative banks, Skai television reported on Saturday morning, as angry depositors demand their money.
...
This is the first time in the eurozone that a levy has been imposed not on the interest of bank accounts but on the capital itself. In addition to that there is a levy on interest, too, and an increase in the 10 percent corporate tax that has been one of the main driving forces behind Cyprus’s financial progress after the 1974 Turkish invasion, generating growth by attracting foreign direct investment.
Notably, the account haircut does not affect bank accounts in Cypriot bank branches based in Greece, according to sources from the Greek Finance Ministry.
Tax on interest will amount to between 20 and 25 percent.
...
Cyprus state broadcaster CyBC reported on Saturday that German Finance Minister actually entered the Eurogroup meeting on Friday proposing a 40 percent haircut on Cypriot bank accounts. Sarris stated on Saturday that this had also been the proposal of the International Monetary Fund.
Sarris stated in Brussels that in view of the threat from the European Central Bank for banks in Cyprus to shut down and chaos to ensue, the increase in interest taxation and the haircut to bank accounts became necessary. “A disorderly default, that was a genuine possibility, has been averted,” he said.
“It allows our economy to proceed decisively to a new beginning.”
...
Opposition leader Antros Kyprianou, the General Secretary of leftist AKEL, accused the government of not consulting the other parties, saying that "the government bears full responsibility for developments in the economy as instead of choosing the road of consensus it has decided to go it alone."
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Shared sacrifice.... BITCHEZ!!!
The lords of the fiat banksters giveth (to themselves) and taketh away (from the serfs).
Gold, like never before, bitchez.
I agree to "Gold, like never before, bitchez." Why everyone with 'means' greater than $2000 does not pull that excess 'inventory' ('inventory' as viewed by the globalists) out of the bank, I just do not understand. They might learn the hard way like the Cypriots.
Concrete will burn.
i just hope my 401k won't burn, i was told when i was 25 if i put 4-8% away that i could retire at 55. Especially in good quality mutual funds.
And of course by not paying tax on that money now you are absolutely guaranteed to pay a lower tax rate later when you "retire."
If those stupid Cypriots had owned stocks they would have all of their money and more. Now they have to work doubly hard or the government will have to take their money again. Fags.
This quote says it all:
The solution chosen may be painful, but it was the only one that would allow us to continue our lives without adventures
Spineless fucking idiots in control of a losing proposition, so they will delay the inevitable for as long as the public will take it. Public hangings of banksters not far off.
I posted this on another thread and I am reposting it here. THERE WILL BE BANK RUNS next week.
Cypriots that I know are planning on taking every last Euro out of the banks on Tuesday. This is also confirmed by reading comments on local Cyprus newspapers. People are irate over this.
I lived in Cyprus for 11 years and still have ex-pat relatives living there now. Fortunately for them all their money is either in paper (a small portion) and the rest is in those two shiny metals.
List of Cypriot newspapers:
http://www.onlinenewspapers.com/cyprus.htm
Here is a popular one:
http://www.cyprus-mail.com/
Betcha, while probably the single most telling Watershed event yet in the dissolution of the Eurp and European Union, following the continual mass raping of the public by those of the New Versailles, that the press here in the Americas will pooh pooh, demean, deride and greet this news with otherwise pre-programmed propaganda that all's now well, it won't happen here and to buy stocks.
Nothing could be further from the truth.
The thieves live.
We here in the States were Corzined.
The stage has been set.
God help us for the inequities of the powerful and selfish, the tyranny of evil men has come down upon us all.
Denouement.
"the only [option] that would allow us to continue our lives without adventures"
Adventures lie in your future, my friend.
A ride on a Guillotine is waaay too much "adventure" for me, thanks!
OOhhh Yeah Spain and Italy just sat bolt upright. There will be blood!
This may not be dissolution of the EU or Euro as much as it has metasticized, poisoning the world economy with the resultant dependencies for more cash. The whole world is sickly and weak. This contagion will likely be used to finish the job ending with a single non-elected central world government that will claim to be intuiting the people of the worlds wishes to pursue the utopian dream, without the mess and pretense of democracy. Just sayin...
Yes your 401k will burn, count on it. There has been over the course of the financial crisis in the US that they put out feelers about having the 401k's put into the SS (social security) fund and/or have it as a requirement for all 401k's to invest all their money in US Treasuries. They are coming for those 401k's, trust me.
This so much. I work with a 'class' and everyone thinks im an idiot for not contributing to my 401k (no matching). Im hoping the job lasts long enough that Ill get my last laugh when theyre forced into negetive return treasuries. They can enjoy their tax free capital gains for now, Ill keep control of my FRNs.
Don't worry, you're safe. Until virtaully any small-brained bureaucrat or the bank CEO cartel running the government decides they can make better use of your money than you can.
yep... snap crakle pop!!!
It appears that zionist banking mafia lost its head or whatever left of it. They have declared an open war to every single human working being on this Earth.
AS for Germans, they just love to be hated.
PS
It is indeed the time for gold and guns. The nice lies about democracy, freedom, and fairness are over. The gangsters have shown their real faces.
And anyone with 'means' less than $2000 should at least buy some food /Pb/Ag.
Bank Run 2.0 starting. I'm looking forward to getting my Party like it's 1929 hat on.
Every dollar/pound/euro/frank/yen in a bank is leant out, then deposited, then lent out again, to such a huge degree today due to the computerisiation of the financial system. Any rush for withdrawals is going to crash the system and cause huge deflation. (Yes I'm a gold bug, tho deflation isn't always a bad thing for gold. 1929 onwards prooved to be a great time for gold mining stocks and gold.
"Jeroen Dijsselbloem, president of the Euro Group, declined to rule out that a similar tax scheme was being planned for depositors in other countries besides Cyprus, but he emphasized that such a plan was not being considered at the present time, the New York Times reported."
In other words, you can count on it.
"believe nothing until it has been officially denied"
--
Claud CockburnLong home safe company stocks.
"And anyone with 'means' less than $2000 should at least buy some food /Pb/Ag."
So if the gubmint can take your money right from the bank then why can't they place additional taxes on gold sales? And while most people have 'boating accidents' how is that not like 'cheating on your tax returns'? Do people see cheating the IRS as an easy game?
So then, how does gold save your wealth if you eventually have to reconvert to FRNs and pay heavily to do so?
In the worst case scenario where there is no gubmint then the shiny metal is nice to look at but all that matters is food, water and ammo.
I'm looking for intelligent responses here.
There are worse things than taxes. Fiat currencies have a disturbing habit of failing entirely.
This is the same government that will arrest you for settling your debts in anything but their company scrip?
Ask Romney or Feinstein how easy they think the SEC and IRS can be.
The shiny has a very long track record of being accepted more places than Master Card and Amex combined.
a
"Gold, like never before, bitchez."
So if the gubmint can take your money right from the bank then why can't they place additional taxes on gold sales? And while most people have 'boating accidents' how is that not like 'cheating on your tax returns'? Do people see cheating the IRS as an easy game?
So then, how does gold save your wealth if you eventually have to reconvert to FRNs and pay heavily to do so?
In the worst case scenario where there is no gubmint then the shiny metal is nice to look at but all that matters is food, water and ammo.
Did anyone else notice the false choice in those two sets of alternatives that were presented?
Sounds so very cut-and-dry, doesn't it?
If we're going to break some rules anyway I GUARANTEE you would like my solution a LOT better than the one that just got implemented if you're a Cypriot (or even a Russian tycoon!). I could even do it without Cypress leaving the Euro Zone.
Hint: nationalize the banks, even if only for a day, pick and choose which debts get repaid and which ones get the middle finger. Further hint: ECB, IMF and a lot of other large "outside interests" would get the middle finger. Clean slate on debt and no need to leave the Euro Zone since there is no mechanism to forcibly boot a country out once it's in. Next phone call is to Russia to say, in so many words, "we covered your ass, now it's time to cover ours."
Note to Self: Double your monthly silver purchases ASAP!
Can't wait to see what those fucks on CNBC have to say about this???
I think at some point the cheer leading bullshit might get drowned out by the screaming fear of self interest, when these stooges realize suddenly, the bankers they have all been "loving" all these years, are really the tyrannical communist dictator type motherfuckers they read about in books growing up! It's all just news, until its your 10% that's confiscated on a Saturday without warning!!!!!
I want to say they will ignore it, but I wouldn't be surprised if that man looking chick is over there because all hell has broken loose.
Good luck finding stories about in on the MSM, of all the major networks (ABC, NBC, CBS, FOX) only NBC wrote about the savings being stolen (and the front webpage article was bout the rape trial). CBS had a small blurb about a 'bailout' and as for the other networks, nada.
Yeah the people have to scarifice their money for the over spending of the government for themselves. They have to give their money so the banks can give themselves bonuses. They think they saved banking jobs? When everyone withdraws their money, except for those businesses that have to have money in the bank, they will find out the hard way. How stupid. I am still astounished at the stupidity of doing what they did. People around the world will not go to their banks and withdraw what they have.
He who withdraws first and converts to metals first withdraws best. The bankers think they have all the control until everyone asks for their money back
Start at 40 and go down for the good of everyone to 9.9........works every time
Raise the price of gas $1.50, then back it down .75 and people are grateful.
Rinse, repeat.
For the sake of raising a paltry 6 billion euros the TROIKA either is either risking total panic in the market or it is flying a kite for more such actions both in Cyprus and Europe.
This whole approach is messy but in the end it may set in motion a series of developments that will bring to a head the whole question of debt sustainability, debt write-offs and even the issue of whether Europe is a dead horse which cannot recover simply by being flogged.
The situation is serious therefore expect more lies. Nothing more nothing less.
It's a small price to pay for such an experiment.
"SUSTAINABILITY" = "BEND OVER AND SQUEAL LIKE A PIG"
Cyprus was a perfect place to float this trial balloon, and it won't go over well, in fact if anything this will precipitate more crises and probably bring about the end more quickly.
To pretend that this was the only way, the right way, to deal with the crisis is foolish. All these politicians and their platitudes and promises makes me sick.
It's like saying we should have taxed you a lot more over the last decade and we didn't...so now we're going to just take it from everyone.
Safe manufacturers just got a windfall...
http://www.bbc.co.uk/news/world-europe-21814325 also 100 armed men already attacked the Cyprus presidential palace this is just the beginning of the end bitchez, soon in theaters in the good old USSA
I went back and re-read the article. Here is what it really said, "Cyprus owes 40% of everything it owns. We are taking 10% now and once we can John Corzine this, we will come back for the rest."
Does ANYONE think that they made a mistake about the 40% ??? Absolutely not. Are they done? I don't think so. Not by a very long way. If you live in Cyprus, take it all out, now.
FGB
From the BBC: "While Cyprus may be one of the eurozone's tiniest economies - its third-smallest - there could be serious repercussions for other financially over-stretched economies, such as those of Spain and Italy" <-- He forgot Portugal and all the rest. How long before this reaches American shores? Is Iceland the only nation with balls?
GO GOLD GO!
This article by an Icelander paints a very different reality to what people from outside tends to believe: http://studiotendra.com/2012/12/29/what-is-actually-going-on-in-iceland/
Okay. Hopefully, my sentiment is clear: PUBLIC FUNDS SHOULD NOT BE USED FOR BAILOUTS.
IT SHOULD BE OKAY FOR BAD DECISIONS TO HAVE NEGATIVE CONSEQUENCES (FOR BANKSTERS).
Stocking up on popcorn, and some cash, just in case ...
"It's just a flesh wound."
"'Tis but a scratch! Have at you!"
"OK, we'll call it a draw."
Up-voted for the Holy Grail quote.
Why not a 100% haircut? Steal a little or steal a lot - it is simply stealing.
If this does not provoke bank runs in all the peripheral countries, nothing will. Then bank runs will hit the center of Europe.
Do you know if your money has left you in the last hour?
gold $100 up monday?
On briefly, before they haircut that as well in the usual manner.
In Cyprus, the price of gold is already up 10% in view of the haircut on your savings.
Ides of March upon us?
et tu Anastasiadis?
Gold and silver are going to crash on Monday. They would probably touch ZERO briefly. We are going to witness millions of goldbug voices suddenly cry out in terror and are suddenly silenced out, full stop.
Another bitcon idiot.
No, just another garden-variety paperbug idiot.
It is a stupid comment.
Go back to bed, Pikachu.
Exactly what drug are you on that encourages you to consume your own just-used toilet paper?
Surely, you will recover tomorrow AM and repent of your idiocy.
Surely . . . .no?
He is not kidding about the manipulated [paper] price going down next week.
He is kidding about it "touching zero".
The PM prices on the exchanges (paper) will go down. The PM prices on ebay will go up.
Paper down / physical up.
Sweet I am putting in a bid for all of it at $0.
I bid a dollar!!
If only you were an oracle (aka, may the gods listen to you)... I'd sell my shirt just to raise cash. Heck, I would even pay significantly above spot for any available.
The Empire lost, idiot.
Wow...
4 idiots agree with eigenvalue,or 3 and himself.....
US T bonds up on Monday; gold down.
I'll take the other side of that bet.
My villa in Tuscany versus your condo in Orlando.
Deal?
How orwellian....Chocolate rations has been increased!
Love the spin. Saved 8000 jobs.....by robbing the little guy
Anybody connected withdrew weeks ago
How much was stolen, exactly? I'd like to know how much it cost to "save" those jobs (which will probably be gone a few days anyways, after the bank runs leave them with no customers).
6 billion divided by 8,000 jobs is 750,000 per job. Even if those jobs last 10 years, it's still a lousy investment :)
If $6B is 10% (give or take), then $24B is what they really want. So it will work out to $3 million/job when they are done.
Kinda wakes you up when you realize what the Bankers are really doing with your money. Gambling it away! Suckers!
Not really gambling it. They just take it from you/us.
we will have to see, but I would be surprised if there was not a bank run starting right now in spain/greece(already happened)/portugal. which inturn leaves the banks even worse off, causing borrowing costs to go up, $ spike, EUR dive, gold up, as LIQUIDITY is drained quickly by people hording cash. then as the fiat is threatened with debasement...massive spending on anything and everything and that much longed for 'inflation' they have been looking to target. now the targeters will be the targets.
while the mortgage issues were obvious, the fallout was the question and was generally underappreciated. now the issues with euro debt (and japan, and china housing) are obvious, but the repercussions are so negative it is hard to contemplate.
How do you say "Good cop/bad cop" in Cypriot?
"ECB/banks"
Oh, wait, that's "bad cop/bad cop".
Never mind.
cash is king my ass
Cash is, king, my ass.
<jump, jump, jump> Cassius, king my ass!
(even you can beat the greatest, at checkers)
Once they have taken your cash they will also be after your ass.
It usually is the other way around :)
I lost my ass in a freak boating accident.
Never boat with freaks.
Translation: We're not stealing from you now, we've been stealing from you all along and you're only finding out now.
"We stole your money, so now we're collecting the service fee."
What I don't get is why they take it immediately from the depositors.
I mean, it was the banks who made the huge mistakes.
So it should have been the banks owners and employees 1st, not the depositors.
Ding ding ding...we have a winner!
esactly right...their houses, their cars, their pets, their children, their parnets, their grandchildren,
and of course,
all the money that have sent overseas to german and swiss banks over the last twenty years
The banks, their employees, and their owners, made assloads of money from fraudulent loans and schemes. They bought houses, cars, vacations, hookers and what not. They were certainly living the good life. Now, they get to keep their jobs and continue having houses, cars, vacations, hookers and what not. Life is good when you are a banker.
lesson number one :
profits are for the elites.
losses are for the masses.
are we clear now?
Nonsense, that would make sense.
Daylight robbery in progress.
Happy bank holiday Cyprus.
Nostalgic reminisces of March through May 2010 Sunday night emergency EU finance minister meetings, with bonus PMs (no, not precious metals, just a prime merkel).
It takes for-fucking-ever when they have to count out the euro pennies.
Clipping 10% from Russian oligarchs laundry basket is going to become a painful personal problem for some folks.
Love how screwing savers is good for 8,000 bankers and therefore good for the economy.. Yeah, we all must take responsibility and not point fingers.
Final call for discount stacking, BITCHEZ!
So how long did they know that two banks were dead as of March 16th? The death of two banks would cost 80 billion Euro?
We had over a week of record setting up moves to cover this bullshit.
The governments of the world just got their wish, armed insurrection coming everywhere.
The US government might try for 40% of deposits and we'll see armed DHS agents everywhere along with the armored vehicles.
so now the cyprus banking model = the absolute shittiest banks that lose the most moeny are guaranteed by the deposits for all sound banks...sounds fair
I can't stop laughing at the anguish on that kids face. Superb.
You can detect the particularly deep shame of self-inflicted stupid.
Sounds democratic to me.
It really sounds fucked up to me.
Christine "Quarante" Lagarde
If you have to ask how much she costs, you can't afford her.
Dear Cypriots:
You seem to be forgetting that you're getting bargain-priced bank stocks in return for the unique, never to be repeated stability levy. Don't think of it as confiscation; think of it as us giving you some free investment management. You're welcome.
Kisses,
European Central Bank
Who the hell decided to downvote every post. Some Euro banker is upset.
Could be Krugman disappointed that the EU thought of it first.
Stanks is here. https://secure.flickr.com/photos/expd/7682401746/
schnauzers always make me laugh
Lady buying hair remover: Can I use this on my schnauzer?
Clerk: Yes, but don't ride a bike for about a week after.
"The state of emergency and critical nature of the times do not allow me, as they do not allow anyone, to embark on a blame game."
Too big to fail became too big to jail, and now "too big to blame"? These assholes are really determined to make believe no one saw any of this coming.
Note to German electorate: are you going to kick out of office your bankster loving politicians ?
And do you suppose the Cypriot depositors should be grateful it was only 9.9% ?
And could it be that DC wants to take guns away from law abiding Americans because when it’s USA’s turn it will 40% ?
Nope.
100%
ALL your fiat and ALL your PMs. Give it over.
Now, that's more like it
http://www.youtube.com/watch?v=4B2a6l6wM2k
They finalized the decision around 3 AM local time or so. But as I understand the 6.75% or 9.90% of everyone's money was already frozen today?
These greeks or cypriots, whatever, might be lazy southern subhumans but sure they were quick today to implement the new business rules locking themselves out of acessing their own money.
why do they need 8,000 bankers when there are only 900,000 people on the island
can you imagine needing 2,666,667 banksers in the US?
errr..just a minute...how many people are employed in banking in the US?
fantastic idea...its a bank holiday when someone steals 10% of you rmoney
so ten bank holidays in cyprus means....
when someone steals 10% of your money ...
You mean like an agent?
At least Spain is protected from bank runs. Spain has spiderman towels.
Oh yes, Cyprus should be very grateful they only had 6.75% -- 9.9% stolen, or something. Yes, those greedy Cypriot bastards are damn lucky it wasn't 40% and a return to the ancient custom of Prima Nocta for Bankers, by Bankers. I'm sure all Europeans will learn their lesson well and will come to heel at once (sarc on), especially the French (sarc off).
Wonder what Beppe Grillo and Nigel Farage will have to say? Can't wait.
Just wow.
Confiscation of 401Ks certainly got a whole lot more plausible.
I don't care what country you live in; until we start stringin' up banksters, you're a fucking idiot for keeping money in the bank.
Every one has to pay their fair share.
Got fizzy?
dupe
holy fuck! 40% of savings of hard working cypriots?? these motherfuckers are insane.
buy pms with both fists, comrades. dont leave a fucking penny to these motherfuckers. i hope some people use those bulldozers one day.
"i hope some people use those bulldozers one day."
"I Hope some people use those bulldozers Monday"
There, fixed it!
I've read some good, and not so good ideas on this thread. I'm going to revert back to (bond seniority)
pari' passu'. The European technocrats have bent and twisted ( sovereign/corporate equity laws) into delusional territory.
This is just too much.
They had to take 7-10% of all deposits away .... Because the deposits were at risk of being lost entirely?
This like a full frontal on fractional reserve banking madness. It WILL ABSOLUTELY happen again. This doesn't improve the liquidity of the cyprot banks at all. It's just the state getting theirs.
Let there be no fucking doubt: the IMF and the ECB put the gun to their heads.
Why isn't the bulldozer in front of the IMF building in DC?
why didnt they drive it into the vault inside the bank?
ran out of fuel..
I also wondered how taking a "fraction" of the saving accounts, which i would assume comprise most of the actual cash these banks have, helps in recapitalising.
hey, just think ...iwe you put half a million euros over there on tuesday, you have avoided a ten percent loss and hence can request a bank loan for prop trading using the ecb's book !
how big was it again €3 trillion?
why dont they just print the money..oh..i forgot..its just ot heir personal friends, the French, German and Dutch banks
MOU =/ MAD
?!
if you can't
throw it at your cat....
you don't own it ..
on the other hand
if you can throw your cat at it
it's probably the 3rd ex wife ..
Just looked across the room
and fell into lust,
with my future ex-wife.
Really.
if you have to pretend you lost it, bury it somewhere you may forget, and can't talk about it, do you really own it?
This theft from depositers to bailout the bond holders. In a just world the bond holders would be wiped-out first , Bond holders take the risk and the interest payments for the risk, at least before the fascist crooks took over.
No impairment for the bond holders you can guess who holds the bonds.
I DEMAND AN ANSWER IMMEDIATELY:
WHAT CYPRIOT IS NOT GOING TO WITHDRAW FUNDS ON TUESDAY MORNING ?
WHAT EUROPEAN IS GOING TO LET THEIR MONEY SIT IN THEIR ACCOUNT PAST TUESDAY?!?!?!?!
THIS IS THE BEGINNING OF A EUROPEAN ECONOMIC CONCENTRATION CAMP SYSTEM !!!!!!!!!!!!!!!
I WANT NAMES......
First of all, a bank run has been underway in Europe for several years. Part of this is the foreign exchange aspect of the eurozone and is structural.
Second, the runs are indicated because of the use of the ESM which is a credit-laundering machine to allow the ECB to make unsecured loans. This renders the ECB insolvent b/c it has no capital. There is no effective lender of last resort in Europe. The ECB is simply another insolvent European commercial lender.
Third, the system is worth more to the Europeans than the funds in it. The euro is the embodiment of the system. No euro = no gasoline.
Fourth, if the euro fails it will be on account of eurozone countries being bankrupt, not the euro itself. If a country is bankrupt to the degree it torpedos the euro it cannot do better with any other currency! Keep that in mind when folks show up on your doorstep with drachma or d-marks in hand looking for dollars so that they might buy some gas.
Send them away brusquely, tell them to tow their car to the junkyard first, then come and ask.
So harsh, but sadly true for the most part.
Although the freedom to use one's own currency does provide a modicum of flexibility one does not have with the zooro...devaluation and deflection of hot money (ala Brazil) can be useful in currency wars. "Now how low would you go?"
What if they come bearing geldmark?
Actually he was wrong more thing he was right percent wise. Only the bond holders take a hit if a country reverts back to it's old currency. Greece has had a contract ( for a year) with a london money printing company in case a bad situation arises and they need some type of currency beyond the euro. Now that's not to say it won't be devalued, but the benifits of shorting bond holders is that they actually get a fresh start. Where the only other option was to sell parts of their country to germany, so german banks could charge the greek people rent on the property they now do not own. They tried that forcefully in 1939 and were not so successful. Maybe they thought a fool and his money soon part ways.
Bad banks and bad politicians unite to defend themselves, and rob everyone else.
Cyprus was a slush fund for Russian oligarchs who robbed their own country, and their KGB pets like Putin who profited from it. Yeltsin before him.
The ignorant person in Cyprus is a very rare thing, as most collaborated with Russian money which they knew was corrupt.
"...This action, his statement notes, enables the rescue of 8,000 banking sector jobs and ensuring the liquidity of the banks,.."
said like a true nazi rockefeller butt boy....fuck the people but my god we have to cut off a nut to save the fucking bankster jobs...
This is what confuses me
I would have thought it would not be legal to confiscate property
Now that they have exposed their willingness to do this why would anyone keep substantial funds in a European bank I would think that gold is going to lift-off
I suspect they will soon regret having done this
Think.
Do this when in position to profit from gold, and smite the Russian oligarchs and their KGB pets.
You are not in Kansas anymore, America. Follow the yellow brick road.
This is what confuses me: why anyone thinks that "their money" is in a bank. What "property"?
It was fractionally reserved before and still is now (with a slightly diff reserve ratio).
It was just as silly to have left your capital with those shyster motherfuckers two weeks ago as it is today.
Example/ Lamborghini= Volkswagon. Audi=Lamborghini<
and now the real games begin ;-) Cyprus was a slush fund for Russian oligarchs and their KGB pets who held most money in Cyprus.
Now, the sharks of international finance are fighting their own sort.