RT reporting that the Cyprus vote is delayed until Tuesday: http://rt.com/business/cyprus-bailout-bank-tax-deposits-401/
Fleecing/tax on bank accounts is now called "negative interest rates" - these guys have great spin doctors.
Cypriot bang : We have your money, we wood decide how much to apply the levy on your balance. we do help out our customers to top up their balances before they are ready for the levy... we as well offer them cash in their account for such an incentive, after the clipping is applied. then we take back what is ours, that is after the amount of levy has been calculated... that is how the game should be played :lol:
Ok it's late and I am severely tired so I am not going to read all 5 pages to see if this has been answered, so. Do I have this right? The two major banks in Cyprus are about to go belly up. One causing the other. The result for depositors according to the PM is that depositors would be lucky to get back 40c on the dollar if a natural bankruptcy was to take place. Europe has agreed to bail these two banks out, but one of the conditions is that they take a MUCH smaller haircut of up to 10c in the dollar because the Cypriot government can't cover the losses. Do I have this part right? If so what are they having a whinge about?
^ The whinge is the ECB/Germans have bailed out billions upon billions to European banks and depositors haven't copped a haircut. This is the first time depositors will have to cough up anything. That's the central issue.
Deposits up to 100K euros are supposed to be insured / safe. A bankruptcy is supposed to affect junior and senior bondholders / creditors - not depositors. The "free" market is supposed to punish risks gone bad and allow new actors to fill the void when a bad actor fails. The political class couldn't possibly be more in your face with the simple truth that the rule of law doesn't exist any more. They will steal from your pocket and expect you to thank them for the transgression to "solve" (it doesn't solve the fundamental / root issue) a crisis of their own making. The Euro experiment will eventually either achieve a political union or unleash another world war. $.02
http://www.telegraph.co.uk/finance/debt-crisis-live/9936737/Cyprus-bailout-live.html And now, just in case you need a replacement scary monster to frighten the children into behaving: Ewald Nowotny, Austrian central bank governor and member of the ECB governing council Source: Telegraph Putin is scaring the pants off them I'd say.
Cyprus banks to be closed until at least Thursday; http://www.businessinsider.com/cyprus-banks-closed-until-thursday-2013-3
Seems like the ECB almost wants the euro banking system to implode around this. I can't imagine a more poorly implemented agenda than this tax on savings! I see what Keiser means by 'suicide bankers'.
In relation to looting etiquette, how long are banks required to be closed before one takes up cinder blocks? Surely if the banks are closed until next week there will be riots and lootings.
[youtube]http://www.youtube.com/watch?v=L-YF1PZjNGg[/youtube] Cypriot protestors removing the German flag from its embassy
Yep. Got it in one. IMHO The people are rebelling about being targetting directly for such a bailout rather than indirectly as has been done to date. They were told their banks were safe ("stringent" stress tests in 2011 etc). They were told the Government deposit guarantees meant something so there's no need to panic. They were led to believe that demand deposits are always the last thing to be hit (i.e. hit bondholders and non-savings creditors - haircuts to the "risk taking" investors not to the "ordinary" savers). They were led to believe that the ECB has everything under control and will do anything (except outright theft) to protect the banking system. All of these are being proven to be the lies that stackers like us have been warning against for years. It's become mainstream.
So, banks are closed from Friday until Thursday, possibly longer. How are people that need money to buy food and medicines going to get by? This will turn very ugly very quickly as people realise they can't eat! This is Their fruit and Their promise.
The speed in which there import driven economy is shrinking, unemployment level rising, poor condition of their banking sector and political instability. Slovenia have been on the brink of needing a bailout for quite some time. It's only a matter of when. They've only freshly elected a new parliament after the last one got ousted in a vote of no confidence and the current one is lacking any real experience and is anti-austerity. I'd be very surprised depending on the conditions of the rest of the eurozone that Slovenia don't need a bailout before the end of the year.
The bailout deal has been revised to 15% haircut for those with over 100k and those with less than 100k get spared. http://www.zerohedge.com/news/2013-...cyprus-safeguard-depositors-under-€100k-euros
Anyone shed some insights on this pls One side says that this is a good sign where now not only taxpayers burden the debt but the depositors share the pain. This indicated Euro starts taking this matter more seriously and also incapable to take more and more debts. On the other hand, this 'run on the bank' disease can be contagious and spread to other previous bailout countries PIIGS and surely if the depositors (mom n dad or big boys or big finanicial institutions) in these PIIGS countries take all their money out, isnt this a sudden death to Euro economy? The banks will go bankrupt instantly because they cant pay all the deposits in one go. Hmmm .. One riddle to be unfolded soon by those officials
^ In today's times where there are far more digits than cash I reckon the impact of a bank run depends on where people move the digits to. From Greece to Germany isn't a large problem since the ECB have mechanisms to channel it back. From Greece to UK/USA may be a different story but again, the central banks are supporting each other nowadays, so it may be manageable. From Cyprus to Russia??? I'm thinking the ECB's restraints on undertaking QE may allow a large bank run to actually work (unlike in the US where the Fed can bailout anyone it chooses to). The question is "can there really be a large enough bank run?" Presumably this restraint will go (even though they have tricks they have been using to get around it anyway). End result is that I don't think a domestic-driven Euro bank run will eventuate. NB Just thinking out loud here, so some comments may be bollocks