Posted on 03/17/2013 8:51:27 PM PDT by alexmark
The Domino’s Are Falling: Europe Announces Stunning Bailout For Cyprus — Bank Depositors To Get Instant 10% Haircut Before Banks Reopen This Week! Biggest Bank Run In History Starts Monday!!
Europe Does It Again: Cyprus Depositor Haircut “Bailout” Turns Into Saver “Panic”, Frozen Assets, Bank Runs, Broken ATMs
http://www.zerohedge.com/news/2013-03-16/europe-does-it-again-cyprus-depositor-haircut-bailout-turns-saver-panic-bank-runs-br
Cyprus bailout comes at a cost to bank depositors
http://www.marketwatch.com/story/cyprus-bailout-comes-at-a-cost-to-bank-depositors-2013-03-16?link=MW_home_latest_news
CYPRUS PRESIDENT: Nation Faces Total Financial Collapse And Euro Exit Without Bailout
In the early hours of Saturday, Cyprus agreed to a “bailout” with the EU and IMF that is very controversial because it imposes an immediate one-time tax on everyone with money in a Cypriot bank before banks reopen on Tuesday (Monday is a holiday).
(Excerpt) Read more at investmentwatchblog.com ...
Is the news that the World Bond Bubble has burst?
Will Commrade Chairman Bernanke at last be cursed?
Oh, what will Tyrant Hussein O. do then, poor thing?
He’ll hide in his White House,
To keep himself calm,
And blame it all on Bush, OF COURSE !
This is a trial balloon for the ECB and BIS to see what kind of reaction the people of Cyprus have. If it’s “manageable” then watch for this type of action to start taking place in Portugal, Ireland, Italy, Greece, and Spain!!!!!
This gambit could be the beginning of the end-game!
There cannot be a bank run in Cyprus on Monday, can there? I thought it was a holiday? And they’re shutting down the banks on Tuesday. The Greeks and the Spaniards can run to their local ATM, but the Cypriots are screwed.
I’ll bet the the Administration is slavering in envy.
As I mentioned in an earlier post. As a long time investment manager, I’m doing research now on the proper portfolio weighting for “backyard money” and how best to do a proper Monte Carlo simulation and where the fat tail risk begins to take hold.
This could become a major paradigm shift of modern portfolio theory.
It’s happening in Europe first, because their economic system is the furthest away from the natural law of economics.
Let me know what your conclusions are.
It is a lot like a special assessment from your condo association!
I don’t know about the Levant and PIIGS, but most people here don’t put their money in the bank as an investment, but because they believe it will be safe from loss, theft, etc. And I suspect that’s pretty much what they thought.
This is definitely going to cause runs on banks. Why leave your money when the government can by fiat (here it would be called an ‘executive order’) declare itself a coowner?
Of course, it couldn’t happen here because we’re a nation of laws with constitutional rights and responsible, coequal branches of government, the FDIC and ...
Right?
Captain Obvious
“an immediate one-time tax on everyone with money in a Cypriot bank before banks reopen on Tuesday “
Coming soon to your 401K...
Why do you think bankers buy so many democrats?
Factor in the risk of gold being (essentially) confiscated. It’s happened before.
Negative! When the condo assesses you, you get something in return, like a new roof or a paint job or to pay for past improvements. The Cypriots get screeeeeewed but get nothing in return. This is more like a lady of the night whose john skips out without paying after she has delivered the services.
I would’nt be shocked if the big boys bailed out in time.
I can’t believe this stunt for just a few Billion dollars which the ECB could have printed without much hoolabaloo.
ping
IIRC, the Cypriot banks were returning 7% in interest.
The depositors were first offered bank shares for the confiscation and then the offer was changed to natural gas bonds.
I think you are correct and I have seen statements that back it up to the effect that the Russian oligarchs were forewarned and able to get out ahead of the action.
OK, so they close the banks and take 10% of all savings, IRAs, etc.
Within a week they’re decorating lampposts in Washington DC.
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