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As Cyprus Delays Reopening Banks Again, Here Are The Longest Bank Closures Ever
With news this evening that the Cypriot banks will not now be re-opening tomorrow (as perhaps - as we noted earlier - a little more of those precious deposits leaked away during the closures than expected):
- CYPRUS BANKS TO REMAIN CLOSED THROUGH MARCH 27: CENTRAL BANK
We thought it useful to consider Cyprus in relation to the longest bank closures in history. Cyprus has now shutdown its banking system longer than Argentina, Ecuador, and Uruguay and as far as President Anastasiades comments that capital controls are temporary - we can only hope for the depositors sake - that it's not as temporary as Argentina's 120 month 'restrictions' starting in 2001.
(h/t @faisalislam via Nomura)
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That’s as good as money, sir. Those are I.O.U.’s. Go ahead and add it up, every cent’s accounted for. Look, see this? That’s a car. 275 thou. Might wanna hang onto that one.
So everyone gets to take off work on Thursday to see if they can bribe their local banker to give them their own money.
Aren't the banks closed again for Good Friday?
Not in Cyprus. The Greek Orthodox Easter will be celebrated May 5
Monday April 1 is a bank holiday in Cyprus. But possible that the holidays extended through Orthodox Easter.
all this fuss about cyprus banks being "closed"
and depositors not being able to make withdrawals
go tell your 401k manager that *you* want to make a withdrawal
nobody protesting in the streets about that one
it's not capital control when its your pension
How did you know they wouldn't shoot you in the face.
Why close the banks
Everybody less than 10 k is safe
Everybody over 100 k knows what's left
You'd think there was a crisis of confidence
A Credibility Trap
Krugmans wet dream
Thought it was all fixed, Paul
Asshole
The re-launching of Cypriotic banks, whenever that day may potentially arrive, will make Best Buy's Doorbuster-Black-Friday-&-Grey-Thursday-Risk-Being-Murdered-4-A-Chance-To-Nab-OneOf20-$249-46"-LED HDTVs-Which-Are-Loss-Leaders-After-Which-Your-Broke-Asses-Will-Leave-And-Proceed-To-Mow-Down-More-Victims-At-Another-Retailer "profitability/#winning" promotions seem tranquil by comparison.
And TIS that is why they call it a credit CRUNCH
When there is smoke in a theater calling out fire sure gets everyones attention.
Time to seperate investment banks from savings banks. It existed at one time way back when banking was a boring low margin but very safe.
You woke up with hope, but you only found fear. I will gladly pay you Wednesday in Spain, for a hamberger today in Cyprus.
It's something you know upfront, when you open a 401k, they have similar accounts in Europe, it's not a checking account, stupid.
I sense a fat finger on the button of the CCB printing presses...
What would be stupid is knowingly socking away the fruits of your labor without being able to retrieve them.
Oh... you still think that is YOUR MONEY?
Lemmings. Talking about Greek Orthodox, or any other Judeochristian or muslim organized religion during this theft makes me shudder. Push the Illusory mythologies down their throats so their minds are handcuffed, make them resort to praying to some mythological "god", while robbing them blind.
same could be said for "theft" and "robbing"
the "money" being "stolen" doesn't even exist
the shudder, on the other hand, is completely real
I don't see the relevance of people's religion in this debacle, hence your comment is asinine. And by the way, without religion, who's to say what's right or wrong. Maybe stealing just proves they're smarter than you eh?
Google Secular Humanism.
So you believe in a guy up in the sky - who tells you what to do - and if you don't follow he sends you to the burning fires of hell
BUT - he loves you - and he needs money.
Are you for real?
The minute someone tells me they believe in god I lose all respect for their (lack of) intelligence.
Oh - and how about those priests who fuck little boys in the ass? And how about those religious leaders who sanctioned genocide on many occasions?
RELIGION IS EVIL.
Religions and insurance companies capitalize on human fear. Great business.
Nonetheless, some people need to believe.
There is also a difference between believing in a higher being and organized religion.
You can not accuse or blame anyone for his/her thoughts and beliefs. Like Bernanke believes in unicorns and eternal Ctrl+P
No, actually I gotta go with the white dudes in the funny hats on this one- relativism in evil. In the absence of a source of law (and absolute right and wrong) that is higher than man, everything is debatable and anything can be justified.
Tying genocide to religion is a non-sequitur- even at the extremes of evangelism (Wahhabism) there are very clear boundaries, until one reaches the more politically oriented and relativist (Al-CIAda) branches of organism.
The monotheistic regions that are relatively consistent that the faggots are sinners that should be stoned to death, just as the police are relatively consistent in advocating law order, until you run into the great blue wall of silence, and just as teachers are all for education, until they are held to account for their actions.
There is a often a conflict between the doctrine and ideals, and the particulars of organization and implementation, especially since man in fallible.
It's not religion that is evil, it is a man whose actions are protected by the imprimatur of authority (granted by an organizational construct of man) that is evil.
Proof that ZH is better than college.
What's scary is that I passed a typing course in college...
The finance, legal and accounting cirriculum was as laughable as professions' reputations have become, but the skills electives should have at least given me some skills (or required that I otherwise obtain them in order to pass)... The education system BS is nothing new, the only change is the degree to which the purchased degrees(now debt-financed) reflect nothing more than access and attendence.
You sir are a dumbass
No man is evil. Those things you rage over come from the free will to carry them out(and to cover them up)
This existence of God is evident in nature. Go take a look and you may find you have no excuse.
Another individual who incorrectly equates organized religion with God. Two very separate and very distinct things.
Apparently difficult for so many to comprehend.
Organized religeon is a corrupt man-made business enterprise that has no bearing on the question of whether there is, or is not a supreme being.
Classic George Carlin quote! Best stand up ever.
Another gem “Think of how stupid the average person is, and realize half of them are stupider than that.”
"And by the way, without religion, who's to say what's right or wrong"
Tell that to the inquisitors when they accuse you of heresy and must punish you according to 'the law' (whatever that is that they made up along the way). However, the relevance of religion is that it helps keep people from killing the wealthy and powerful as the people are being fleeced before led to their slaughter, so 'religion' serves those that hold power thru position or wealth extremely well. The examples throughout history of religion being used against the people while their lives are made miserable are virtually endless.
Jesus wept (lol) - someone who thinks that without an Imaginary Sky Fairy, there's no such thing as morality.
By your avatar I take it that you claim to be able to see through the bullshit claim that .gov is here to help, that .gov parasites are 'public servants' and so forth... how can you not see through the ludicrous idea that you get morailty from an Iron Age story about an Imaginary Sky Fairy who
REALLY? If we get rid of that primitive gibberish, we risk not being able to say what's right or wrong?
Damn - the entire fucking Enlightenment just passed you by.
If the Imaginary Sky Fairy is anything like the reprehensible prissy self-centred douche in the Old Testament, we would have a moral duty to oppose it and kill it if possible.
And of course, Epicurus' paradox...
"Outside, a sign taped to the window noted that the bank's office will be closed for Good Friday and Easter Monday. It read: "The Staff and Management of Laiki Bank UK would like to wish you a Very Happy Easter."" - Source: WSJ
Rumours that the ports in Cyprus are searching people trying to take money out of the island. That means the Euro has TWO prices. It would not be so hard to imagine that the old Cyprus Pound will be reintroduced and exchanged for Cyprus Euros at some exchange rate. Perhaps that's why the banks are remaining closed for so long?
are they marking "as local" all the euros on Cyprus now ?
Friday and Monday, I think, EU banks are closed. Maybe Cyprus does not follow this schedule because it is not the Greek Orthodox Easter this Sunday? I don't know.
http://www.youtube.com/watch?v=EOzMdEwYmDU
Potter is offering a great deal.
It's good Friday Monday thru Sunday...
I hate Jim Carey right now after his anti-gun rhetoric but that movie is classic!
I desperately want to make love to a cyprus banker!
I'm getting google-ads for that on these ZH pages!
Man, have I been going to the wrong websites or what ?!
Make sure you practice safe Sex.... a little rough and fast is permitted.... OK lots of rough play is fun, after all thats how Bankers do it.
Wait... do people still think that these banks will reopen?
You may have identified the real Bingo event. Banks don't open as promised. Much of the LARGE cash is already transferred. Nothing left for the little guy uninsured depositors anyway at any of the Cyprus banks. Banks start to liquidate assets to raise cash for depositors. It may well be the first forced Mark-to-Market moment since the bank problems began in 2008. Once the real prices for the PIIGS junk is revealed because of the volume of the dumping from the Cyprus banks, additional selling will come. The ECB already has a full load of this stuff.
OH, yes, by all means, we must start periodically posting this chart. We can open a whole new market betting on the odds that this will go all the way. It is March Madness, anyway.
I've got Sealy vs Serta in my bracket championship game. Serta winning because it has slightly more total cubic inches in the mattress for storage.
ECB is probably runnng the printing press and sending more fiat to Cyprus to handle the demand on Thursday. Cypriots will want cash - not a bank check!
Be on the lookout for cargo planes landing with bellies full of Euros.
pods
The first 4 planes drop the loose euros.
Rainbow-hued confetti, joy in the streets.
Somebody call Paul and Ben: it works!
It really works.
The fifth plane drops the fuel-air weapon.
Oceans 14! .... anyone?
Nah its better to hold quality poo tickets
I wonder how they will break the news that the leaked deposits will make the bailout useless. "Er, by the way..." Should be fun to watch.
Yeah, these banks are never going to open.
"Expect to hear from us."
-The Cypriot People
Argentina had capital controls in place until December 2011, and then in 2012 they started going into high inflation. Coincidence?
They can only be open (if open at all) for as long as the few miliseconds it takes to transfer the deposits out. What Euro entity will stick more money into any of these banks to stop the run? There is going to be a large asset dump of the junk debt they have on the books. We will finally know what a real market price is.
Don't worry guys, this is all just an early April Fool's prank. Krugman sez it's good for the economy.
I love the smell of fresh ink in the morning...
Smells like .... capitulation.
Smells like .... hyperinflation. Got gold?
It takes 2-3 weeks to have the new €s with "SUCKERS!" Printed on them.
Shame on you ZH, for not using the more politically correct term: "bank holiday". Bank "closure" or bank "lockdown" sounds so harsh, while "holiday" sounds happy and care-free.
I love Holidays !
BTW, I chatted with a few friends who have internet shops...ALL have now placed Cyprus on the "Excluded" list. Poor (innocent) folks/savers gettting the 'trickle down effect' from bankers' mischief.
A Mexican Siesta para banco, for all my illegal pals here in Tx
If it were the US, it would be a bank vacation, with all the associated sun worshipping and frolicking. Just like spring break.
I can hear George Carlin now...
in his best sing-song mocking voice... "it's not a bank closing, it's a bank holiday".
Bank holidays, something we should associate with white beaches, palm trees, peace, girls in bikinis ....just wonderful.
Picture of a bank holiday: http://s3.amazonaws.com/rapgenius/sexy-girl-on-a-palm-tree-wallpaper.jpg ;)
Bank Holiday - what a cheerful concept. Kinda like "friendly fire".
Indeed! Its a double plus good bank holiday for all! Let the games begin.
Just one more category that 'Murica kicks everyone else's ass at. Just look at the US domination at the top of the chart.
So what is this chart telling me now?
Tells me that someone in the US, maybe the BLS(one letter too many), started their statistical alchemy in '33
FDR loved shutting banks down for a month at a time.
most statists do
It's telling you it only took the Fed 20 years to cause the First Depression...Oh, and WWII.
I'm still a little confused about how the #s add up.
If these banks had 68B in deposits and a 10% levy would get them 6.8B to use as collateral for a 10B loan? Except that the 68B is now a lot less if Russians transferred out, and thus they need all savings of everyone over 100k to get "rescued"
Clearly I am missing something, help me out ZH.
No, you got it...
Why are there not dead government officials and banksters heads being paraded around on sticks? It's seems ... fair.
Fair...just... Words that used to exist in the english language..
Now? We have Bankster...
Its multidefinition changes daily
This reminds me of how Social Security works
Sarcasm detected.... Social security works?? Why do you think I have a "Honda Full Of Silver" ? Perhaps I think that SS will be means tested, as will any savings I put away. Yes, I expect to be punished for having easily tracked assets such as stocks/bonds/401ks and banking accounts... However, I'm interested in taking some cruises where "my life savings" are involved in a horrible boating accident. If I could physically take delivery of it, I'd like to take down a few tons of copper while I am at it. At the very least, it can be turned into bullets. I think the 5.56 mm round might just be the next currency. Lets hope I am wrong.
they raised the fees on parade permits in advance of this event.
Uhhhh. Why do you think the banks are still closed?
Oh, it's a holiday.. Saint Bankers Day
those are 2 words I have never seen side-by-side
ZH gave you a hint. Study Argentina bank closures, 2002 version: http://news.bbc.co.uk/2/hi/business/1940533.stm
"The government is now hoping to pass a bill that would convert most depositors' savings into 10-year bonds." 2002 Argentina
The 100K haircut is the biggest pile of BS sold to the Cypriots. They are going to get f*cked. Russia and any body else with swing got out a week back. Check your liquid safe haven flows, namely in FX, shows up there.
"Cyprus' tottering banks held 68 billion euros in deposits, including 38 billion in accounts of more than 100,000 euros - enormous sums for an nation of 860,000 people that could never sustain such a big financial system on its own.", and Russian nationals are said to hold 20 billion of the total 68 billion in deposits. So lets see if there was loopholes and banks open all week associated with the big money people. Not only the Russian 20 billion give or take a billion for maybe staying in the country but I don't buy that (if other russians are able to get their money out they will tell others they know and if they see what was going on they would have took their money out), and possibly 18 billion of others who wanted their money out also.
So at the very least 30 billion is left in deposits and from the numbers all of that should be under 100,000 euros. Even if said individuals where stupid and didn't try to get their big deposits out, I can't see 5.8 billion even being left over 100,000 euros. They are lying or will have to take the money from the ones under 100,000 euros, the EU must know that or they are delusional. They are playing this out and waiting for Thursday (if the banks will open) for the banks to open. Then we will hear reports of people balances not being the same or 20% less etc. etc. and then the banks will close saying they have to fix it and it will be closed on that friday and then the weekend we will know that they had to take money from the under 100,000 accounts.
Because the big money guys are gone and had ample time for the other non russians to get their money out also.
I doubt they'd be able to move that much money out in a week. The cash wasn't just sitting around waiting for a bank run. It will have been invested into something else to generate the income needed to pay depositers their interest. I read they were heavily into high yielding Greek bonds. They just aren't that liquid.
So all this hot money that people say to get out of the US is going to be safe where exactly? The US will steal about 10% of the value of your currency per year. Everyone else will steal about that or more to keep up in the currency wars. If the hot money gets scared, it escapes and pulverises the leveraged lending of the 'safe haven' fractional reserve bank. This transmits default into the rest of the leveraged and fractional reserve system so that a tiny nation defaulting can pancake the entire world financial system in short order. Where in the world is your money safe? Nowhere. If its not in real stuff, its value will dwindle to nothing, sometimes slowly, sometimes lightening fast.
As I sit and look at that lying sack of shit Joe Biden on the ZH Gun Control ad, I think with government thugs like that at the helm, there is nothing safe anymore. The veil is torn, the grand illusion is revealed. We are fucked. Free Jon Corzine....
The 6.8B isn't collateral for the 10B, it's in addition to it. The 10B goes to the State to prop up its balance sheet (which in turn props up the ECB/Eurozone balance sheet/ponzi scheme, the other escalating 4-6 number is to prop up the bank balance sheets so that Cyprus remains "solvent" and in turn the clowns up north remain "solvent"... It's not about about actually helping the troubled Banks in Cyprus (or God-forbid their depositors).
No your on the right track... now factor if those deposits have been "used" to gamble on some safe government backed bonds of some friendly close nations and when the people ask for cash please the bank has two options. option 1/ tell the truth and suffer the anger or 2/ pull the shutters down and run like a cat in flames. Can you sing " when the trust has gone"
I heard that the EU banks are closed for the holiday on Friday and Monday. If banks in Cyprus follow the EU schedule, does it make sense to open them for one day?
Dollars in mattress looking smarter and smarter...
A dollar from 1913 buys around 3 cents today, or what took .03 in 1913 now takes $1.00(at least!) if you had that paper dollar converted to a silver dollar, since it was backed by silver, it would be worth almost $30.00
Same story for a $20.00 paper bill..100 years later it buys approx. 0.65 or what took 0.65 in 1913 now takes $20.00.
But if you were wise to buy a double eagle for the $20.00, and were wiser and didnt turn it in to the .gov in '33, its now worth $1700.00 approx
Paper or Shiney?
Make mine Shiney!
In 1964 the minimum wage was $1.25 -- 5 silver quarters.
That's $25.95 in today's "money".
So much for that.
Fixing the money is more important than inflating the minimum wage.
Mattresses have a better rate of return than savings accounts now.
1/2% which taxes need to be paid on. Then a 10% fee for holding the money when the bank siezes up. In the mattress it goes.
Or just Party Hardy as there is no need to save for retirement as it will be taken or taxed anyway.
Oh Joy
Not sure about those numbers on the US capital controls, I seem to remember reading and still have copies of these that mentioned lots of controls:
The Public Papers and Addresses of Franklin D. Roosevelt: The Year of Crisis, 1933
Public Papers and Addresses of Franklin D. Roosevelt: The Advance of Recovery and Reform, 1934
Heck, not being allowed to legally own gold from 1933 to 1973 seems like it qualifies as one heck of a long capital control to me.
This is a quote I like that you can find on the Fed's web site:
"Where would we be if we had I.O.U.'s scrip and certificates floating all around the country?" Instead he decided to "issue currency against the sound assets of the banks. [As opposed to issuing currency against gold.] The Federal Reserve Act lets us print all we'll need. And it won't frighten the people. It won't look like stage money. It'll be money that looks like real money."
-Treasury Secretary Woodin, 3/7/1933 (Source: 'Closed for the Holiday: The Bank Holiday of 1933', p20 - Federal Reserve Bank of Boston) http://www.bostonfed.org/about/pubs/closed.pdf
We should close banks forever.
Use their buildings for museums.
Life would be nicer.
Close all the banks, turn them into brothels.
Gay brothels with Bernanke and Krugman manning the GLORY HOLES
Long, Cypriot Pawn Shops.
there was a story on local chicago news the other night about how high-end pawn shops in ritzy north shore burbs( jew-y money changer hamlets- if you know what I mean) can't open fast enough- interesting
What's worse? Eurozone or the Russian October Revolution?
...All commercial banks closed down in October 1917. Their staff received salaries but were instructed not to perform any banking functions in the hope that economic paralysis would bring down the Bolshevik regime. Nevertheless, by the end of the year, the Bolsheviks had succeeded in nationalizing all commercial banks, sending armed detachments to occupy their offices in Petrograd. While business accounts were confiscated, private savings accounts were respected.
http://en.wikipedia.org/wiki/Banking_in_Russia#Soviet_period
In the 1890s there was a week-long bank holiday in the Colony of Victoria (subsequently State of Victoria in the Commonwealth of Australia); first week of May 1893 IIRC. It was during the worst of the land boom-bust cycle. It was highly criticised in the press at the time.
What followed was the worst economic depression in Australia's history.
I can give you inside info,what possibly can happend later in Cyprus bank "opening".I was banker,7 years,i did bank run 12 years ago.Meantime 16 years ago,15 banks went to bankruptcy,overnight,in Bulgaria.Yes,the goverment told this news to citizens friday night.Decision was,all deposits in national currency,and foreigh currency to be paid to depositors,in 4 instalments,every six months.Any depositor,who was lucky to have deposits in "hard"currency,as us dollar or deutsche mark,was not happy,but get his monney in full after 2 years.Guess what happend with others-inflation bitchez.Good luck with Kypriots,who eventualy will get theyr deposits in euro,after months,or years,and if euro still exist,how many euro will be loaf of bread.
What ever happened to the "E" word: Embezzlement?
A brief history about Cyprus from a journalist.
Do your homework, Mr Schäuble!
After the failure of the EU's €10bn Cyprus rescue plan, the German Minister of Finance has questioned the island’s low tax regime. However, a well known journalist argues that following the 1974 Turkish invasion, Nicosia had no option but to offer tax breaks.
Aristos Mihailides
In his bid to justify an unprecedented tax on bank deposits, German Finance Minister Wolfang Schäuble insists that the Cypriot economic model “has gone bankrupt.” In his fascist opinion, "anyone who invests money in a country where taxes are low and supervision is weak should suffer the consequences when the banks and the country itself cease to be viable."
We are convinced that the tax measures involved in the deal were discussed in front of Greek and Cypriot ministers. And what was their response? Did they point out that the Cypriot model was not devised by a rabble of swindlers but by a European state which had to find a means to survive in the aftermath of military invasion and occupation?
To avoid collapse, this state — half of which is still under military occupation, not that it would make any difference to Mr Schäuble — took the step of lowering taxes on tourism, marine charters and bank transactions to attract foreign investment.
The economy had to be given the means to develop in a context where Turkey — which controls 700,000 voters of Turkish origin in Germany — had strangled the Cypriot state by stealing 65 per cent of its hotels, 87 per cent of its holiday complexes, 40 per cent of its schools, 48 per cent of its agricultural exports and 56 percent of its beaches (and we will continue to reiterate these figures so that history will not be forgotten).
How was the Republic of Cyprus supposed to survive without an economic model designed to attract a level of investment that was sufficient to enable it to recover from the invasion [of 1974]? Is Mr Schäuble so focused on his economic lessons that he has no time for history?
Has no one thought to tell him that of the 80 foreign shipping companies registered in Limassol, 36 are German and only three are Russian? Or could it be that this is in fact the problem: the Germans have three Russian companies under their feet at a time natural gas is going to boost business and tankers will bustle to and fro throughout the Mediterranean?
http://www.presseurop.eu/en/content/article/3566981-do-your-homework-mr-...
Meanwhile Schauble says taxes in France are too high, meaning that the only correct tax rate in the world (or at least the EU, for now) is whatever tax rate Germany happens to have at that moment, so that there is no opportunity for arbitrage or outsourcing that does not benefit Germany.
Seriously, what would he say if Hollande actually cut French taxes and structural labor expenses so that France was more competitive than Germany?
As stated previously, it would be poetic justice for the banks (whatever remains) to open next Monday - April Fools Day....
If this pans put, then maybe, just maybe, its a big Rothschild joke....
Which it is anyway; although they and their ilk in St James' are the only ones laughing. They will die soon though
Wait, I thought everything was all fixed?
Since the global banks have agreed on 'coordinated' actions, I could see a series of sudden bank holidays with capital controls and boat inspectors to confiscate any hot money that tries to flee.
Speaking of capital controls, whatever happened to the two Japanese guys that got caught with $130 billion worth of UST bonds in Italy?
Bank closures during depressions and currency and debt crises, hmm...
But don't worry folks, the recovery is here, your money is safe; now go shopping!
Really isn't it time to arrest Paul Krugman for conspiracy to commit fraud.
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Was some sort of attack just ordered by code?
EUR/USD has broken below its 200 DMA. Next leg down should see it hammered into 1.2660. No reason to own this thing now. Europe bank funding is going to be real problem as capital flees, and it was already strained anyway.
It's only taking so long because they are out of practice. Next time will be much faster.
It's just taking longer for the Russians to tunnel through all that rock to get into the vaults than was expected. As soon as they get in and clean them out, then the banks can reopen.
When one thing these banksters say is going to happen actually happens, I'll start believing them.
When that happens twice in a row, I'll know for sure the system is rigged.