Bailout of Cyprus to cost depositors 10% immediately

The obvious solution for the Cypriots is to turn around to the EC and say

"Sorry - no can do - looks like bank bankruptcy and exit from the Union.

Oh - you don't want that? You think that any exit clears a path for further exits? You feel you might see the whole house of cards take a hit?

Then run the printing presses a little longer and pony up the extra, which is a minute fraction of what you've been shovelling elsewhere"


This looks increasingly like a 'clever' intellectual banker/Eurocrat thought experiment that has got out of the test tube and is poised to sweep the World.

 

Jim Sinclair is adamant that they are screwing with the money of the Russian KGB and mafia and they really don't want to be doing that and the the Cypriot government ministers involved have put their very lives at risk by double-crossing the Russians with this plan.

See: http://kingworldnews.com/kingworldn..._Breaking_Loose_After_Cyprus_Catastrophe.html

A realisation that explains the drawing out of the issue and deferal of blame onto the EU.

And the Cypriot Finance Minister going to Russia to try and calm their concerns. (A reference from The Age I can't find now.)

I guess the effects of Polonium-210 in the soup of Alexander Litvinenko might be one of their concerns.
http://en.wikipedia.org/wiki/Poisoning_of_Alexander_Litvinenko

In other news, apparently all the British ex-patriot retirees living in Cyprus are not too happy either.

When you consider that more than half of the deposits in Cypriot Banks are Russian and then you factor in the savings of the ex-patriot retirees, there will be a whole lot of money exiting Cyprus in quick fashion.

 

I wonder if the Cypriot finance minister will make it back to Cyprus. Sounds like a suicide mission

 

In a bankruptcy what is supposed to happen is the bank closes, the bank staff lose their jobs, the shareholders get wiped out and the govt protects the deposits of the citizens.

The govt has said they cant afford to protect the deposits, so they will instead protect the bank, the bank staff and shareholders and screw the citizens.

I would say that is something to be pissed off about.

 

BTW As an advocate of sound money I reckon hitting the savers before taxpayers (but with demand depositors being the most senior debtors of all besides workers) is the right way to go like in the "good old days". The real issue in my mind is how we transition back to such a world rather than do it overnight.

 

Another good reason to have 'preps'.

 

So savers have been shafted. If you live on credit, borrow and live a life of largesse you won't be affected. If you go without and save your money, then you will be ripped off. Great message the ECB is sending there.

 

Thanks I thought as much. As for Germany/ECB not making others take a haircut I really couldn't care exept that it really is the bond holders of bank and sovereign debt that need to take the largest haircut. And when I say that, I mean if after a 100% loss to bond holders the depositors need to take a 10% haircut then that's what has to happen. If bond holders aren't taking a 100% hit then this rock show of a bank run needs to start sooner rather than later.

 

Damn...that embassy video is the writing on the wall.

 

Havnt people heard of Internet banking?????????

Wouldnt be hard to electronically transfer your funds elsewhere.

 

[youtube]http://www.youtube.com/watch?v=7FBPleqV_40[/youtube]

 

From what I've read the Cyprus banks disabled ALL electronic transfers.

 

Heavy Penalties been threatened if people move their money electronically, but what are they going to do, tax them more, perhaps a threat for citizens or others living there but not off shore people or corporations. Having said that, perhaps they have disabled the electronic banking over there

 

^ Write a cheque to a family member @ another bank and back - date it to before tax was announced.

 

Bah the russians wouldnt care about heave penalties as they are not citizins.

Possibly they have disabled all electronic banking but that would cause havoc for a week with no access to physical cash and no access to electronic funds so it seems unlikely.

You would not beable to buy groceries / fuel you kow ther basics to live on.

It I lived there and I had savings and no external bank account I would pay all my saving onto my credit card to put that into credit, they should not beable to touch that.

 

All electronic bank transfers from Cyprus banks have been disabled. If they weren't, there would not be a concern about bank runs as the money would have already been transferred out. People would be using computers rather than bulldozers to try and access their money.

 

Cypriot banks banned online transfers and emptied cashpoints to stop withdrawals;
The levy could be automatically taken from accounts as early as Wednesday;
British tourists were told to ensure they had multiple sources of money;
The chief minister of the euro area refused to rule out similar levies elsewhere;
Analysts said the raid could fall foul of the European Convention on Human Rights;
Traders are braced for turbulence on international stock markets today



http://www.dailymail.co.uk/news/art...h-taxpayers-bail-victims-outrageous-raid.html

 

for internet banking to work, someone have to authorise it on the other end.

as long as you are still in the system, there is no way you can escape the rorts.

the thing is to play their game along (deep in debt, stack, positive cash flow). long life banks....

 

Cypriot Govt had better put a rush order into a good mint to start issuing new cypriot pounds or whatever they choose once they get kicked out of the Euro. Or they may choose to use another soverign's currency like Zim does with the Rand & $US