Posted on 03/17/2013 7:42:19 AM PDT by DeaconBenjamin
The Cypriot cabinet has declared Tuesday a bank holiday, for fear of capital flight, and this may even be stretched to Wednesdayas depositors are certain to withdraw huge sums from the Cypriot banks after the haircut imposed.
Nicosia postponed from Sunday to Monday the tabling in Parliament of the bill including the measures for the Cypriot bailout – including a bank account haircut and a tax hike on interest and corporate earnings – but the European Central Bank insists on a rapid voting because there are already signs a domino effect will follow across European lenders and markets from Monday.
There is genuine fear of market unrest on Monday morning when stocks may crumble in the eurozone and bank accounts in other southern European banks may suffer.
Skai radio reported on Sunday that the Bank of Greece has sent between 4 and 5 billion euros to Cyprus in order to help Cypriot banks respond to cash requirements by their clients.
You don’t need a crystal ball to see our future.
All I’ll say is I’d hate to be the bank manager trying to explain to a Brezhnevian-eyebrowed Russian mafiosi where his money went when the banks reopen.
Just sayin’..........
Greece loans billions? How deep is that rabbit hole?
Be assured our government is watching the civil unrest carefully for strategy and tactics to control a population.
Don’t think bank accounts in the US are safe from forced confiscation.
Fear of capital flight? How about the certainty of capital flight? You'd have to be crazy (or an invalid) not to be in line when those banks finally open.
And note to other EU bank depositors elsewhere: better get out while the getting's is good.
Do you think that maybe they knew this and might have dropped a dime on this action beforehand?
Can’t confiscate what’s not there.
Money? Cash? Lost it in a tragic boating accident.
It’s possible. Cyprus is somewhat notorious in the EU as a money-laundering center and a haven for folks on the lam.
Interestingly, the Cypriot Parliament hasn’t ratified this yet....that’s expected tomorrow. They’re between a rock and hard place, a major Catch-22.
If they vote “yes”, then the depositors take a 6.75 to 9.9% loss. If they vote “no”, Popular Bank will go bust, as the ECB has refused to extend emergency liquidity, and the Central Bank of Cyprus can’t take that kind of hit. If Popular Bank goes under, it takes the rest of the banking sector with it. One of those “too-big-to-fail” scenarios, if you will.
Interestingly, this really doesn’t apply to Northern Turkey, unless a person is a TRNC resident and has a bank account with a South Cyprus-based bank. I recall there’s tons of Turkish-based banks in the Northern sector, so for them, this isn’t as big an issue as it is for the folks in the Greek part of the island.
A number of yours ago, a county near where I live put a 1% tax on all stock holdings. Not a 1% tax on the dividends mind you, but a 1% tax on the value of the stock itself.
It was stupid and unenforceable (after all, it was a county government with no real reach), and the law was repealed after a few years.
But if Obama were to try the same thing, with the entire IRS behind him...
1.6 billion rounds of small arms ammo says they already have a contingency plan to be tweaked and executed.
Ooops....typo in my reply. In the fourth paragraph, I meant to write “Northern Cyprus”, which is controlled by Turkey, not “Northern Turkey”.
I hope so for your sake... http://reason.com/blog/2013/03/14/covered-at-reason-247-spy-agencies-to-sc
Well, don't come whining to us about your misfortunes. And I'll bet you carelessly kept your guns and gold in that same boat.
:)
1.6 billion rounds of small arms ammo says they already have a contingency plan to be tweaked and executed.
********
“Executed” — a good double entendre if that was intentional.
They better start worrying about a run right here in America. I know I intend to keep a little extra cash on hand out of my account Monday.
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He reminds me of the Kapos at the German concentration camps.
Bad times coming.
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