Bailout of Cyprus to cost depositors 10% immediately

Discussion in 'Markets & Economies' started by Caput Lupinum, Mar 16, 2013.

  1. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Regardless of what happens, surely this still marks the end of the banking system in Cyprus.

    The moment the banks open every sane Cypriot would be extracting their wealth from those banks (whether they've taken a haircut or not).
     
  2. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    I wonder if they will place a smaller withdrawal limit per day for each account and slowly increase it until they believe a bank run is no longer a threat
     
  3. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Cyprus' parliament has rejected the levy on bank deposits!

    Now watch the mass exodus of cash, from Cyprus banks! This could have a particularly nasty flow-on effect.

    Looks to me, Gold will strengthen, the Aussie dollar will strengthen and... this could be the signal for those with dual citizenship to think about returning to Australia.
     
  4. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Well that's what they did in Argentina...they called it the "Corralito" or something..it means corral...like the pen you put cattle in. :/
     
  5. Fykus

    Fykus Member Silver Stacker

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    did argentina end up with hyper inflation? if so thatd make sense... trick everyone into drawing out their cash and then start printing loads of it so that its not worth anything anymore while money in the bank gets to keep up with inflation because of interest rates (or is that wrong)
     
  6. fishball

    fishball New Member Silver Stacker

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    http://www.zerohedge.com/news/2013-03-19/spain-preparing-its-own-deposit-levy

    I lol'd.
     
  7. JulieW

    JulieW Well-Known Member Silver Stacker

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    Jim Sincair at KWN today - worth reading the whole thing:

    http://kingworldnews.com/kingworldn...Danger_After_Putin_Crushes_IMF_In_Cyprus.html
     
  8. tozak

    tozak Well-Known Member Silver Stacker

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    So word is Russia is arranging a proposal now to bail out Cyprus, I wonder what the terms of this bailout would be considering Russia is also passing new laws to prevent Russians from having off-shore bank accounts.

    With more Russian vessels headed for the Mediterranean perhaps we will see a new boat harbor set up in Cyprus for the Russian vessels and perhaps Cyprus will move off the Euro and onto the Rubel?
     
  9. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    Cyprus would make a more appealing naval base for Russia than Syria atm. I don't think the EU will look too kindly of Russia bailing out one of their own. Then again, if the bankers can save a euro or two from the deal, they probably won't care.
     
  10. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    Gonzalo Lira has already "gamed out" how the next country will exit the Euro;
    http://gonzalolira.blogspot.com.au/2012/07/how-country-rationally-exits-eurozone.html#more

     
  11. renovator

    renovator Well-Known Member

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    It sounds well thought out . The local business people would be unhappy .
    But i suppose there needs to be some sacrificial lambs to slaughter. It would work for the short to medium term until they run out of euros .Who knows what would happen after that
     
  12. libertadiac

    libertadiac Member Silver Stacker

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    No, they had deflation, and salaries of public employees were cut. Bank accounts were frozen for over a year . When I was In Buenos Aires in oct 2002 ATMs had been smashed/removed, and bank doors were locked - if you waited for an hour or more you could push past someone coming out to get in, but you could only withdraw from overseas accounts.. The peso lost 3/4 of it's value, after 10 years pegged to the US dollar, and people traded mostly US dollars ( but there was no large scale barter as widely reported)
    It is now illegal to possess any other currencies or precious metals or to have offshore bank accounts.
     
  13. southerncross

    southerncross Well-Known Member Silver Stacker

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  14. JulieW

    JulieW Well-Known Member Silver Stacker

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    Words from Gerald Celente - who predicted 'Economic Martial Law' in his 2012 Trends, suggesting the Central Bankers would do something like grab ten percent of deposits in the Meditteranean countries.

    So worth listening to for a perspective from someone who called this move.
    (Alex Jones video so sorry for the people who are irritated by his rants - but he does good work imho)

    [youtube]http://www.youtube.com/watch?v=bv-TfBXEOAc[/youtube]
     
  15. menotcrimex

    menotcrimex Member Silver Stacker

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    Banks not open in Cyprus untill next Tuesday at the earliest!

    Everyone (Global) seems to be buying physical! Great stuff

    Safe companies must be rubbing their hands together

    Remember layer your security to protect

    1) your family and yourself

    2) what you own

    Simple measures include reinforcing the timber around the inside of your doors with metal plate, prevents a quick kicking in.
    Good cctv
    Extra internal door bolts
    Good Alarm, wireless can be easily disabled....so wired is better

    Insurance etc

    Don't let's friends or family know.....people often talk without meaning harm...word gets around fast
     
  16. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    Is it time to start looting yet? I have my looting sack and cinder blocks ready to go
     
  17. tozak

    tozak Well-Known Member Silver Stacker

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    http://www.youtube.com/watch?v=DrWXvQvNAd8&feature=youtube_gdata_player
     
  18. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Excellent viewing JulieW, thanks for sharing; I hope many stackers watch your video.
     
  19. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    The Troika and IMF have already knocked the proposal of nationisating Cyprus' pension funds on the head as it would create yet more debt for Cyprus which they would have no way of paying. The Russian deal I think hinges on whether Russia wants to wait at least 6 years before the gas reserves south of Cyprus which have only an estimated reserve volume is actually up and running. This proposal has also angered Turkey who are claiming the gas reserves are rightfully theirs. If there's no resolution to this by Monday evening euro time then my bullish position on popcorn will be revised upwards again.
     
  20. Dogmatix

    Dogmatix Active Member

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    Seems like Gonzalo thinks economies work in a vacuum?

    A country that cannot trade, what are they to do?

    Imagine if the entire eurozone refused to trade with them until they honour their debts?

    I could be way off, but trade takes two parties, and if you annoy your trade partner, you risk trade problems.

    I'm just pointing out that Cyprus' problems may not be solved through currency policy on it's own.
     

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