Bailout of Cyprus to cost depositors 10% immediately

O.k so ABC news is saying this whole thing will 'worry' the markets tmrw.......Are they right?

 

Unlike a sharemarket correction or precious metal drop of 10%, a bank tax of 10% offers no future upside to regain losses. Eg. If shares drop 10%, there is an expectation that they can rise 10% and hence over time you have no loss. A 10% loss on cash offers no future rise so the loss is in fact a real loss, not a paper loss.

 

Yep London & NY will decide tonight EST.

Regards Errol 43

 

Ooh.............. that sounds interesting! This thread seems to be taking up some room it seems..... Wonder if it because of all the crime going on?

By the way, i'm watching all this latest news like a Hawk...... Thank god for the Internets!

Bring on the 19th of March 2013 ASAP!

 

Its almost business opening hours for banks in Eastern Europe; lets see if we see a contagious retail deposit frenzy in Europe today.

 

Lets hope so....I cant wait!

 

Man, waaay too much glee from you

Better than everyone being down in the dumps though

 

Ye........ I'm over all this doom and gloom talk.......... I'm prepared, and I want to see some real action happen. The rest of it is just mumbo jumbo!

 

If Cyprus takes 10% of money out of bank accounts and there's limited fallout, it will give the EU/ECB the confidence to do the same in other stressed countries like Portugal, Spain, Greece, Italy etc.

If I had money in any Mediterranean country's bank I'd be lining up 9AM Monday to get it all out.

The purpose of a bank is not to make money, but as a safe place to store it. If there's risk that some or all will be lost, you'd be getting the hell outa there.

 

Great point!

 

You really should be careful what you wish for.

It just might come true and have consequences you never imagined or wanted.

In any case I can't see the European bank allowing a real bank run to occur - they will provide all the physical cash wanted and just keep printing more if necessary.
If it comes down to a choice between bank run and printing money, the printing will win every time.

 

Or they will keep the doors locked indefinately.

I believe that is what happened in Argentina at the beginning of their financial crisis in the 90s (from memory). People could no longer get physical access to their money.

 

Romania and Yugoslavia were not peaceful don't forget. Also China in 89, peaceful protest didn't work.

 

I think Mathew 26:14 is right. Contagion is the risk here... the precedent has been set.

Rather than this strengthening the Euro, anyone in a country with even the slightest hint of instability will be thinking their saving could be raided at anytime and start sending their cash off-shore into other currencies.

Anyone in the PIIGS, Portugal, the eastern ex-soviet satellite states would all be very nervous at the mo...

 

The P in PIIGS stands for Portugal.

Also this is not a done deal as the proposed tax grab has not passed the Cyrpiot Parliament.

If it does pass i predict violence on a huge scale. Violence against the banks and against govt authorities. Greek Cypriots are not likely to just grumble about it as we would do here.

If it doesn't pass, Germany may not fund the bailout. Then it gets interesting.

 

Don't forget though that by then the Soviets who propped up all the communist regimes of the Warsaw Pact were themselves on the edge of collapse. If the Soviets were as strong then as they were before Reagan began confronting them at the start of the decade, the peaceful revolutions would not have happened. Or the Soviets would have just rolled a few divisions of T-80s into their capitals and crushed anyone in their way - Hungary 1956 all over again. In the 1980s I was friends with Germans (Bavarians I think) who fled after 1956, they still lived in fear of the Soviets in 1984 from the other side of the world. Because in their eyes, violence worked.

I'll add to Romania and Yugoslavia's end of communism experience being bloody - Albania. A country that tore itself apart to get to the same place with hardly a shot fired in anger.

 

Yes all Regimes are oppressive even the so called good ones.
By history i ment the last 3000 years or so, more violent than not, and the next 3000 years will be the same .
but we will probably be back to sticks and stones by then :lol:

 

The vote in parliament is pointless. If the vote doesn't pass, they can take the money anyway.

 

"Depositor Repression" May Spread To Swizterland, EURCHF Spikes
http://www.zerohedge.com/news/2013-03-18/depositor-repression-may-spread-swizterland-eurchf-spikes

More then one way to skin a cat... err I mean fleece the sheeple. A truly insane world the one we find ourselves inhabiting