14 votes

Cyprus votes to reject bailout. Now what?

Cyprus voted today to reject the terms of the EU bailout. Will the Russians step in with an alternate deal? Will the Cypriot banks reopen?

Links:
http://www.zerohedge.com/news/2013-03-19/cyprus-parliament-r...
http://www.nytimes.com/2013/03/20/business/global/cyprus-rej...

Nigel Farrage on the EU plan:

http://youtu.be/JMf_KwQ2Xlk

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The scam of fractional reserve banking.

Here is the deal. Banks everywhere are broke because many of the loans they have made can't be collected. So those in power (bankers and politicians) are trying to stick to losses on anyone they can except for themselves. Their choices are (1)bankruptcy filings for banks and let the owners take a 100% loss and just pay depositors what is left, sticking them will some loss too for their gullibility in keeping money in corrupt organizations;(2)sticking it to taxpayers by having them bail out banks which is what they have been doing to date to prevent the bank owners from taking the loss for their stupidity; or(3)pulling a stunt like they are trying in Cyprus where they steal from depositors to prevent the bank owners from taking the loss for their stupidity.

It isn't a matter of saving the banks. It is a matter of who takes the losses, and given that the bankers are the ones who pull the strings on politicians and governments, it will take a revolution to keep them from sticking it to the public in some way, shape, or form.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.

The damage has already been done.

The damage has already been done. The second those banks open, the flood of money out of Cyprus will epic. People already anticipate this will happen and just the idea of it means people will try and be first in line at the banks before they run dry.

seriously though.... what in the fuck did they think would happen.
People are too stupid on average to understand inflation overtime is theft... but an outright %10 highway robbery of peoples savings accounts?

Either "they" are INSANE or this is a staged crisis.
I'm guessing this was planned but im not sure why just yet.

Tools of war are not always obvious. The worst weapon is an idea planted in the mind of man. Prejudices can kill, suspicion can destroy, and a thoughtless, frightened search for a scapegoat has an everlasting fallout all of its own.

My guess....

They will take it anyway.....

Yes Russia

Is already prepared to absorb the whole bailout for some natural resources or to even buy banks there.

"Its easier to fool people than to convince them that they have been fooled."
Mark Twain

Well, a couple of people have died from this, but:

Greece can start making her own money.

No?

If you don't know your rights, you don't have any.

If the deposit insurance pays out and the bail out does not

Then banks will re-open and all insured deposits will be withdrawn which will collapse the bank. Uninsured deposits will likely be totally wiped out. This would mean the EU just took a large portion of ex-KGB Russian Oligarch money. About the dumbest and least safe things possible.

The Cyprus finance minister is now headed to Russia:

http://www.sbs.com.au/news/article/1748342/Cyprus-finance-mi...

Statements by the head of the Cyprus Parliament:
http://www.telegraph.co.uk/finance/debt-crisis-live/9939296/...

They should default

What German government is doing wrong is putting German taxpayers and currency holders at risk by bailing them out at all to save the people who took the risk from the consequences. It's the Germans who should be really upset.

What people are actually upset about is rather confused. If anyone is going to lend them more money they certainly should ask for assurances. Asset forfeiture is not the way to go about it though.

Cyprus should default forthwith. If they cannot stop spending then they need to inflate or float sovereign bonds at market interest rates. Private investors should take risks with their own capital.

The Cypriots can't blame Germany or anyone else.

“Today, Germany is engaging in Nazism again,

not with the weapon of force, but with money,” said a pensioner, Dimitris, 67, who would give only his first name.

The rejection drew loud cheers and cries of joy from a crowd of more than 500 protesters who had gathered in front of Parliament since late afternoon, carrying banners denouncing what they said was a confiscation of their private funds.

Some wielded unflattering posters of Chancellor Angela Merkel of Germany, a day after a demonstrator breached security at the German Embassy and climbed to the roof, throwing down the German flag."

http://www.nytimes.com/2013/03/20/business/global/cyprus-rej...

Michael Nystrom's picture

Bump

.

To be mean is never excusable, but there is some merit in knowing that one is; the most irreparable of vices is to do evil out of stupidity. - C.B.

Saxo Bank CEO: Cyprus deal could signal end of the eurozone

http://www.youtube.com/watch?feature=player_embedded&v=hedfX...!

Published on Mar 18, 2013
Saxo Bank CEO Lars Seier Christensen says a Cyprus deal could signal the end of the eurozone. For more CNN videos, visit our site at http://www.cnn.com/video/

"Give a man a gun, and he could rob a bank. Give a man a bank, and he could rob the world."

Next?!?!

I would guess;

Run on Banks
Banking Collapse
Cyprus leaves the EU
Starts using own currency
Rebuilds

SteveMT's picture

Cyprus vote: 36-0, with 19 abstentions & 1 absence.

The key measure was rejected with 36 votes against, 19 abstentions and one absence.

Read more: http://www.dailymail.co.uk/news/article-2295670/Cyprus-REJEC...
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Wow, impressive

If only majority opinion somehow equated to legitimate opinion.

Here's what now

1. Never vote again for any reason
2. Start your own banking market (underground if necessary)

SteveMT's picture

ECB to the rescue, whether Cyprus wants it or not.

[Hearing the sound of bankers printing more money.]
ECB Responds To Cyprus, Says "Will Provide Liquidity To Cyprus Within Existing Rules"
3-19-13
We were waiting for the ECB response, and seconds ago we got it, when the ECB uttered the magic words, saying it would provide "liquidity within existing rules." What this means is unclear, but the algos loved it and sent the EURUSD up over 50 pips higher in milliseconds.
http://www.zerohedge.com/news/2013-03-19/ecb-responds-cyprus...

Call Iceland

and Ron Paul.

The law cannot make a wicked person virtuous…God’s grace alone can accomplish such a thing.
Ron Paul - The Revolution

Setting a good example is a far better way to spread ideals than through force of arms. Ron Paul