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Member Section => Down Range Cafe => Topic started by: Tyler Durden on March 17, 2013, 08:19:21 PM

Title: WHAT?! No run on the Cyprus banks thread yet?
Post by: Tyler Durden on March 17, 2013, 08:19:21 PM
here's what the NY Times has to say on it:

http://www.nytimes.com/2013/03/18/business/global/facing-bailout-tax-cypriots-rush-to-get-their-money-out-of-banks.html?pagewanted=1&_r=2&smid=tw-nytimesbusiness&partner=socialflow&adxnnlx=1363522395-WWfQo3UeSnuV3g8RzRAKSg&

basically, if you have less than 100,000 Euros in a bank in Cyprus, you get hit with a "one time" (  ::) ) "tax"  of 6.75% .

If you have more than 100,000 Euros in a bank in Cyprus, you get hit with a "one time tax" of 9.99%... so basically 10%

So you saved and scrimped your entire life, or you were just lucky and planned well financially speaking for 20 or more years, or a relative died and life insurance left you with 200K,  POOF!  automatically, overnight, there went 20,000 Euros .

Tomorrow, Monday, is a bank holiday in Europe or Cyprus, supposedly.  The bank officials have shut off the ability to wire money out of Cyprus based accounts over the weekend.

People tried a run on the ATM's....until the machines ran out of cash.

There's no telling what might actually happen come Tuesday.  Could just be a run on Cyprus banks....


Or could be a run on all banks in Europe?   :o

Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: Ulmus on March 17, 2013, 09:22:47 PM
 :o  Whoah!

Now that's worth keeping an eye on.  Anyone know how this is affecting the asian markets? 
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: Tyler Durden on March 17, 2013, 10:33:07 PM
Nikkei is currently at 12,304.18 (at 10:30 PM St. Louis time), down 256 points, or 2.04%

http://e.nikkei.com/e/fr/marketlive.aspx

A-yup, wondering what the Dow Jones will do on Monday, day.

 :(
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: alfsauve on March 18, 2013, 05:18:51 AM
Long term effect will be a drain of capital from Cyprus.  

But the real problem is the precedence it sets.   Cyprus, by itself, is a bit player.  However, if the EU does this to Cyprus where else could a European put their money.  Not anywhere in the EU.   Asia or Americas?  

You just wonder if some US lawmakers or  bureaucrats are salivating over this idea.

"It's a ONE TIME tax."  "It's for the children."  "You don't NEED all that money.  Social Security will take care of you."
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: TAB on March 18, 2013, 06:03:28 AM
FRance did the same thing, more then once.
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: darkpassenger on March 18, 2013, 09:53:29 AM
That money's going somewhere. Folks smart enough to save in free-spending europe aren't going to get burned twice. All they've done with this is open an artery to let the lifeblood of their economy flow out, and penalize responsible productive citizens.

This scheme has been looked at here, via retirement accounts. It's a lib wet dream to get direct access to the people's money.
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: Pathfinder on March 18, 2013, 12:31:47 PM
That money's going somewhere. Folks smart enough to save in free-spending europe aren't going to get burned twice. All they've done with this is open an artery to let the lifeblood of their economy flow out, and penalize responsible productive citizens.

This scheme has been looked at here, via retirement accounts. It's a lib wet dream to get direct access to the people's money.

Tricky situation in Cyprus. Apparently it's become the Grand Cayman of the Mediterranean, and fully 50% or more of the Cypriot banks' holdings are foreign, mostly Russian - including our Commie buddy Putin's stash. The EU is demanding that Cyprus essentially pay for its own bailout, and this "tax" is one proposal. Banks are now closed through Thursday.

Dow is down 10 point at the moment,w as down 40 earlier.
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: crusader rabbit on March 18, 2013, 02:47:29 PM
DOW is down.

Gold is up.

Fortunately, this Rabbit got all his carrots out of Cypress banks before the grand theft.

Crusader Rabbit
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: JC5123 on March 18, 2013, 02:55:15 PM
Jay Carney referred a reporter to the Treasury Dept. when asked what the White House response was about this. Apparently the Treasury Dept is "closely monitoring this situation". Which to me is code for: We're going to watch and see exactly how they do this so that we can make it even worse and do it here.

ANY other President would have immediately denounced this. Saying that it doesn't fit with the American way to confiscate private property from law abiding citizens. The fact that this regime won't denounce this, (especially after floating the idea of confiscating retirement accounts) is really disturbing.
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: Ulmus on March 18, 2013, 03:27:32 PM
Just heard over the radio that these banks were in the hole 17 Billion because they invested the customers money in...

Wait for it.....


Greece!   :o ::) :P

Brilliant move there. 
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: Tyler Durden on March 18, 2013, 09:57:29 PM
supposedly, the Cyprus banks aren't going to open until Thursday now.   ???
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: fightingquaker13 on March 18, 2013, 11:11:22 PM
I wonder when their ammo shops and lumber yards open?
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: Tyler Durden on March 19, 2013, 02:03:36 PM
Now, New Zealand is thinking about doing the same thing:

http://beforeitsnews.com/banksters/2013/03/contagion-depositor-haircut-bail-ins-spread-to-new-zealand-govt-discussing-cyprus-style-solution-for-bank-failure-2432772.html
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: jnevis on March 19, 2013, 02:15:03 PM
Just heard over the radio that these banks were in the hole 17 Billion because they invested the customers money in...

Wait for it.....


Greece!   :o ::) :P

Brilliant move there. 

Only because the government (EU) told them they had to.
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: JoeG on March 20, 2013, 09:30:34 AM
Discussing this over dinner last night and I made the point that the government did not do the obvious thing and just tax the foreign accounts as they belong to the Russian mafia. From watching Good Fellas we all know that the mafia response to having their money taken would be swift and direct and violent. I think the pols and the bankers were scared spitless about how that would play out for them.
 
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: Tyler Durden on March 20, 2013, 12:15:32 PM
now they are saying the banks may not re-open:

http://worldnews.nbcnews.com/_news/2013/03/20/17384301-cyprus-crisis-deepens-bailout-rejected-banks-may-not-reopen?lite
Title: Re: WHAT?! No run on the Cyprus banks thread yet?
Post by: Solus on March 20, 2013, 12:51:11 PM
Not at all surprised.

If the banks open, very few will not be wise enough to try and get their cash out in the first few minutes of the re-opening.

How will they ever convince folks to trust the banking system again? 

Every bank in the country will collapse if they are ever re-opened.

And it won't be limited to just Cyprus.

How many other countries will have citizens wondering when it will be too late to get their money out before it is confiscated.

Just the knowledge of this proposed action could cause a world wide banking collapse.