WHAT?! No run on the Cyprus banks thread yet?

[Tyler Durden]

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?  

[Ulmus]

   Whoah!

Now that's worth keeping an eye on.  Anyone know how this is affecting the asian markets? 

[Tyler Durden]

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.

 

[alfsauve]

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."

[TAB]

FRance did the same thing, more then once.

[Sponsor]

[darkpassenger]

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.

[Pathfinder]

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.

[crusader rabbit]

DOW is down.

Gold is up.

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

Crusader Rabbit

[JC5123]

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.

[Ulmus]

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!   

Brilliant move there.