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Cyprus Banks Set To Reopen, To Serve As Glorified ATMs With A €300 Cash Withdrawal Limit
Tomorrow Cyprus banks will reopen sometime around noon (they are supposed to close at 6 pm but likely will close far earlier). What does that mean? Apparently nothing much. Because according ot various newswires the withdrawal limit at all banks will be €300 per day. This means that all those daytrading wannabes who want to get stinking rich and just buy US stocks with "no risk", will be unable to buy even one riskfree (at least until last September) stock of AAPL per day!
In other words, all said "reopening" will do, is to allow physical branches to be used as glorified ATMs but with a very terrified and confused carbon-based teller on the other side (the same ATMs which a few days ago saw their limit reduced from €300 to €120). All other cash transactions will be strictly curbed, virtually no cash will be allowed to exit the island, and the what's more the government will ban the termination of the oh so ironically-named time deposits. This means that time deposits will now become "permanent deposits", even if within the €100,000 insured limit. The good news: credit card treansactions will be permitted when paying for goods and services anywhere on the island. Of course, electronic cash just happens to not be physical cash, which is why the bank is so cavalier with allowing people to access their own money. Well, electronic 1s and 0s-based money.
In other words, tomorrow's bank reopening means absolutely nothing (as ATMs had worked for the duration of the Cyprus bail-in crisis), and anyone who had hoped they could just walk in and withdraw their entire insured deposit up to €100,000 will be severely disappointed. Of course, those who had more than €100,000: Poof, it's gone, step aside please.
Oh well: such is life in the New Normal under capital controls, in which there is a unquantifiable premium for having physical cash over electronic.
Learn from it.
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My philosophy of staying deep in debt..... How curious that the debtor has assets purchased with debt and is untouched, while the savers, who are creditors, get the rough end of the pineapple. I guess being a slave to the banks means they own you and need you to produce by sweat the thing they dine on.. Interest income. Banks regard you as "Indentured" so they would never eat you.
That is of course until they are hungery after they have dined on the savers. Then you will have 30 days to pony up. Please read your loan agreement... your loan can be called in at anytime and within 30 days
How is this not going to end up as the mother of all deflationary crashes?
In a falak pema previous post, this is just a sideshow. The real meat of the issue is the template in use going...
FORWARD!
Oh great! Now Wells Fargo's debit cards don't work.
http://www.wsoctv.com/news/news/local/wells-fargo-customers-report-debit...
While all this is going on, the USSC is leaning towards homo-marriage, and statists like McCain and Schumer are trying to squeeze in a National Biometric Card into the Immigration Reform Bill. This is a Trojan Horse, insofar it is a logical and necessary next step toward Universal Bitcoins, where ppl become walking biometric units of money.
Once again, you read it here first. But you will gloss over it or ignore it till an official article is posted by the 'Party'.
I see a new financial opportunity opening up in Cyprus -- Come to Russian bank in Cyprus and use credit card. Buy rubbles in collectable money pouch -- then trade rubbles for Euros -- only charge 5% plus credit card fees...
So if you use a credit card how are you going to pay it when it is due to be paid???
Even better - try to find a business that will accept a credit card issued by a failing bank...
You will use a debit account to pay for your credit account. While the capital controls will fail, that won't be a problem. Of course you can default, but that would hurt your credit history.
Bank worker strike in 3...2...
Ha, that won't be me. Forget bank deposits and forget physical cash. I spend that fake ass green monopoly money of cans of sardines, bottles of whiskey, and boxes of ammunition the second it touches my hands.
mattress atm/safe https://sphotos-a.xx.fbcdn.net/hphotos-ash4/300730_10151589862617975_197...
Bitcoin New All Time High: Last price:$89.38395
The european banking system typically multiplies paper by up to 50. So how much can you fit in a helicopter? €10 billion? €20 billion? That's €500 billion - 1T. Admittedly the Cypriot multiplier has probably dropped like a stone the last couple of weeks but I'll bet inflation is the order of the day as the new paper gets put into circulation, not deflation.
Well, its not about what they can fit. But the bailout is 10 billion euro, so if they use up the bailout then the banks are dead.
There are two factors, not just one that will drain the banks
1. People want to take out their money
2. Imports are going to exceed exports for a long time, becsuse the currency is overvalued.
tyler, there is a difference. with the bank openings people will be able to reach their safe deposit boxes. some of them could be full of gold and cash.
Now who said anything about allowing access to the safe deposit boxes?
<And what about the safe deposit boxes inside the closed-for-repairs Laiki bank?>
And find them empty?
Back in FDR's reign of terror, a revenue agent had to be present when people opened a safe deposit box. Can't imagine it being much different in Cyprus. Any Cypriots on here?
Hoax apparently.
http://en.wikipedia.org/wiki/Executive_Order_6102
safe deposit boxes will be opened to the people but the government may decide to look into what is there and people will have to prove they legitimately own it (had enough income to buy the staff or show the documents they got a gift or as loan)
So if you had 10,000 Euro in a Cyprus bank account it would take you 30 business days to withdraw 9,000 Euro cash.
Considering weekends, it would take you six weeks to get 9,000 Euro out.
So...capital controls mean everything is fixed?
*cough*
Withdrawing one's savings now becomes a full time job.
It will help create jobs.
Ha! Get Krugman on that!
That's funny ! Pelosi will say its another job creator as well - stupid winch...
Cypriots... take out what you can and charge the fuck out of your credit cards anyway you can... then don't pay 'em. Topple the banks yourself, it's your only hope. Fractional reserve lending hurts the banks tremendously if they can't get paid for your debts.
If I'm the bank your new limit is 2k and you only get one card.
Kathimerini English @ekathimerini
Reports of a bomb blast outside house in the Acropolis area of Athens. #Greece
And this now also from the same twitter feed
Bomb goes off outside residence of shipowner Panagiotis Tsakos, according to reports #Athens #Greece #explosion
The Cyprus solution was my idea except you have to do it worldwide and you have to use new currency.
On the plus side, ATM’s in Cyprus can now be simpler in design than a cigarette machine; just push the one and only big button marked “MaxiPac”, and 300 Euros falls in the tray with a warning label stating “This Money Could Be Hazardous To Your Wealth”.
Kaboom
http://youtu.be/_3Eav2aWLBU
ECB Cyprus capital control measures. Nothing to see here move along.
i have seen enough. i have started moving cash OUT of my bank accounts in the US. sent the utility companies enough money to cover my bills for the next 11-12 months. wasn't making squat on the funds anyway. let them wory about whether their cash is safe.
bought a year's supply of toilet paper and put more USD in the safes as a backup. next on the list is more PMs and ammo
You're just starting now? Sheese, wher've you been for the last two years? Oh and good luck finding ammo under fitty-cent a round.
yaaaawwwwnnnn.
...any bankers swinging yet?
And now the warning shots being fired anonymously. They tried the blunt and direct way with Merkel and Dieselboom now the passive aggressive way.
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_27/03/2013_490306
IIF: Cyprus aid may stress bank funding elsewhere
Banks in Portugal, Spain and Italy may come under funding pressure after a deal earlier this week in Cyprus rescued the island’s financial system at the expense of bank creditors, the Institute of International Finance said on Wednesday.
European governments and the International Monetary Fund agreed on Monday to loan Cyprus 10 billion euros as long as the country liquidated its second-largest bank and forced losses on bank bondholders and deposits of more than 100,000 euros.
“This new approach is apt to put funding stresses on banks in weaker economies – especially Portugal, Spain and Italy,” the Washington-based association of the biggest commercial and investment banks said in a report.
“Instead of severing the link between bank and sovereign balance sheets, the Cyprus deal will have deepened these links: Banks exposed to weak sovereigns will have their depositors and creditors haircut, pulling down the economy and public finances.”
Guns are illegal here and booze is too expensive with taxes, so I stocked up on food for a month and TP for a year. After that I'm dead. Way to blow up the world you dumb asses.
So youll eat for a month but shit for a year? Or is the TP to barter?
Most people will want some luxury in their last days. The zombie movies show we won't last 6 weeks. Then again maybe it will be like Independence Day where we bond after taking out the world-wide enemy and we live happily ever-after.
Where is will smith when you need him?
"Illegal" is a state of mind.
See Bank. See Bank run. Run, Bank, run!
Who'd a know that the one Simpson's episode fits so many Country's banking memes.
This line is for customers who have assets at the bank only, please step aside... mean while... the Russians sitting smoking the cuban drinking some Cognac laughing at the EU, suckers....