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Cyprus Bank Depositors Forced to Forfeit 9.9% of their Money to Fund Bailout!

A bailout of Cyprus has been arranged

If you have money in a bank in Cyprus which is part of the European Union, you will lose some if it- up to 9.9% and get equity in the bank in exchange.

Details of the Cyprus Bailout:

http://www.reuters.com/article/2013/03/17/us-cyprus-parliame...



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This story deserves an open thread

Does just declaring one make it so?

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SteveMT's picture

The amount of this bailout for Cyprus was: $13B

Cyprus accounts for just half of a percent of the euro region’s economy.
http://www.zerohedge.com/news/2013-03-16/europe-does-it-agai...
"I'm extremely angry. I worked years and years to get it together and now I am losing it on the say-so of the Dutch and the Germans," said British-Cypriot Andy Georgiou, 54, who returned to Cyprus in mid-2012 with his savings.

"They call Sicily the island of the mafia. It's not Sicily, it's Cyprus. This is theft, pure and simple," said a pensioner.
http://www.zerohedge.com/news/2013-03-16/europe-does-it-agai...

[Things are not O.K. when when money is forcibly taken from people. Expect the blowback of bank runs and violence, especially from Russia.]

Almost half of [Cyprus'] depositors are believed to be non-resident Russians, but most of those queuing on Saturday at automatic teller machines to pull out cash appeared to be Cypriots.
http://www.zerohedge.com/news/2013-03-16/europe-does-it-agai...

Take from the poor to give to the rich

Semms pretty clear

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Take

heed. People with large sums of 'money' in the bank are asking for it.

When a true genius appears in the world, you may know him by this sign: that the dunces are all in confederacy against him. ~J. Swift

It seems Anyone is at risk

In cyprus those with under 100k are goimg to pay close to 7pct tax on their deposits

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This is a "one time levy" the banking system is sound

Sub prime is contained
Fredie and fannie are fine
Bear and lehman are undervalued

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SteveMT's picture

"Funds to pay the levy were frozen in accounts immediately,.."

"... ECB Executive Board Member Joerg Asmussen said. The levy will be assessed before Cypriot banks reopen on March 19 after a March 18 national holiday. Sarris said electronic transfers will also be limited until then."
http://www.bloomberg.com/news/2013-03-16/euro-area-takes-aim...

Posted Comment by Anonymoose: (17 minutes ago)

Suddenly those tin foil-foil-hat conspiracy theorists keeping cash and gold in the mattress don't seem so crazy anymore.
http://www.bloomberg.com/news/2013-03-16/euro-area-takes-aim...
[Indeed!]

This is yet more evidence that centralization of power is BAD

The whole POINT of the American system is to DECENTRALIZE POLITICAL POWER.

And the reason for that is that when individuals are allowed to have a lot of political power, things will (sooner or later) get VERY BAD.

This Cyprus news is HUGE. But one thing overlooked is this: The Cypriot people did NOT vote on this; the Cypriot legislature did NOT pass this "law;" the Cyprus President did NOT sign on to this (in fact, just last month he said this WOULD NOT happen).

No, this decision was made by the UNELECTED members of the European Union -- these are bureaucrats who are really Globalization Nazis. These cowards made their decision in Brussels, on a Saturday, and are not accountable to anyone (though maybe the Cypriot people need to start taking action against these brutal thugs).

Anyway ... centralization of political power is a VERY BAD thing -- and this is yet more evidence that this was true 200 years ago and it is still true today.

THIS is the central theme that libertarians should be constantly emphasizing. Although statistics will say that corporate power is bad, corporate power primarily happens in conjunction with political power, and it is NEVER nearly as bad as what centralization of political power brings.

Europe decided on this approach

Their argument is not that the EU is too big and powerful but rather this measure would have been unnecessary if they had more power!
If only they had a central bank like the US does they could have just printed the money needed for the bailout

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Yeah, and Hitler ...

... argued that he needed more power as Chancellor, too.

Bank runs, 'broken ATMs' and panic

Says zerohedge: http://www.zerohedge.com/news/2013-03-16/europe-does-it-agai...

When a true genius appears in the world, you may know him by this sign: that the dunces are all in confederacy against him. ~J. Swift

People, this is HUGE NEWS !!!

This is the biggest news of the past 10 years!

First off, this is not a decision by Cyprus. This is the European Union making this decision. They have decided NOT to "bankrupt" the government (which would mean defaulting on Cyprus government bonds, owned by banks and other investors). They have decided NOT to raise taxes or cut spending.

They have decided to DIRECTLY STEAL the money from the people who have bank accounts. The European Union and socialism are so bad, the state has made things so awful, the politicians are so incompetent to solve the problem, that they have resorted to stealing money directly from the people.

They made this decision on a Saturday, with Monday a holiday in Cyprus.

There will be a bank run in Cyprus on Tuesday. There will be bank runs throughout Europe now, too, because this is a EU decision, so there is every reason to believe they will do this to other countries, once the "test case" is done in Cyprus (small population, test it to see how much backlash happens).

Imagine if one day you woke up and found out that overnight Congress and Pres (even though Barry is not eligible) had passed a law to steal 10% of everything in your bank accounts and retirement accounts, and your accounts were frozen so that you could not take that money out.

This is the case in Cyprus, and you can bet that anyone with a bank account in the EU is going to be thinking that this could happen to them next.

The Globalist Nazis are watching to see how much backlash there will be, then they will tweak it. Start watching the spin on the Propaganda Media Network and for signs of "testing the waters" about doing the same in USA and other European countries.

Watch for riots in Cyprus and Europe. This is BIG, BIG news.

Check outnhow the press is covering the story

The theft angle is barely mentioned
If you dont believe in private property then there is no issue

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This could result in a flood of cash to the U.S.

Panic may cause Europeans to try to find a safer haven for their money. Right now, that may appear to be the U.S.

Bad news: that may just temporarily prop up our own bankrupt system and guarantee a bigger default in the future. Temporarily, though, it seems to me this will be a boon to our banks.

Eventually the concept of "money in the bank"

Will go away as a means of saying your money is safe
But for now
People still believe that the us treasuires and banks are safe

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Doubtful ...

... far more likely they'll be moving money to Asia.

FATCA is going into effect, which means the US gov't. will STEAL 30% of bank account transfers to foreign banks that do not register with the IRS.

Europeans who want to avoid 10% confiscation in European banks will not want to risk 30% confiscation in US banks.

Wow, the outright thefts seem

Wow, the outright thefts seem to get just more obvious in the banking system.

And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our lives, our fortunes and our sacred honor.

Will this cause bank runs In Europe on Monday?

Depositors in Spain, Italy and Portugal must be nervous
Their banks will be open Monday while the Cypriot banks will be on "holiday" till tuesday
What will happen to the price of silver and gold?

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Here is how CNN reports on it

"Tiny Cyprus Gets BiG EU Bailout"

http://money.cnn.com/2013/03/16/news/economy/europe-cyprus-b...

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This kind of hubris will

start the stampede out of fiat and into something tangible. BANK RUN!

The Dutch Finance Minister Weighs in

“As it is a contribution to the financial stability of Cyprus, it seems just to ask a contribution of all deposit holders"

See, no big deal.

http://www.bloomberg.com/news/2013-03-16/euro-area-takes-aim...

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Google or start page "Cyprus Bsnks"

And read how they characterize this comfiscation of depositor momey

This article at least makes it the headline

http://www.bloomberg.com/news/2013-03-16/euro-area-takes-aim...

Othwr articles focus on the "deal" being struck and ,ention the "depositor tax" as matter of fact

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Merkle was quoted on the Cyprus Bailout

"t would be irresponsible to leave cyprus on its own" so rather she and the euro minister think its better to "tax" depositors' money and take money from Russia to fund the bailout

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If anyone is still using a bank

you deserve to lose all your hard earned paper digits. The reason you would still be using the bank is because you have IGNORED the problems banks cause or even though you KNOW the problems banks cause you still use them.

That is poetic justice as far as I'm concerned.

The word depositor is incorrect

People who "put" money In the bsnk as a "deposit" are really not.

Rather they are lemding the bank money.

A deposit remains the property of the individual making it, a loan does not.

Under most banking regulations the bank the takes the money loaned to it and is allowed under fractional reserve bsnkimg to create more money which it then in turn lends out to others at a higher rate than the "deposit"

So your point would be well taken if the banks were not regulated.

If you make a bad loan you might lose your money.

In this case the government decided on its own whether the banks would repay the loan.

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Actually.

The word "bank" is incorrect. It is actually your PERSON that is a private bank... what you think of as a bank is actually a DEPOSITORY. The people are the source of all the credit.

Another European Domino?

Another European Domino? Interesting that Russia is participating in the bailout whats their stake in this? This won't last long people will stop putting their money in if it doesn't cause a run.

Yeah we are insolvent so we'll just steal 10% of big depositors money and tax/steal 6% of the rest... Sigh! And people put up with this crap. You can bet it will happen here.

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Indeed its bad enough that Europe does this to its members

But then has to enlist Russia to help with the bailout of the Cypriot banks

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There is lots of Russian mafia money squirrelled away in Cyprus

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"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."