Posted on 03/17/2013 10:52:43 AM PDT by WriteOn
Let me first (try to) give you a justification for the seizure of bank deposits in Cyprus.
Everybody who knows any thing about Cyprus also knows that the domestic banks were a parking lot for Russian hot money. I wrote about this back in 2011 (Link). There are a gazillion other articles saying the same thing.
That being the case, the seizure of some of the black Russian money as part of a bailout for Cyprus is not really a surprise. With dirty money flowing in, the stupid banks in Cyprus used the deposits to buy crappy assets like the sovereign bonds of Greece. To a significant extent, the hot money caused the problem – and therefore the E5.8b ($7.5b) hit to depositors is justified.
The folks in Berlin, Brussels and Paris all understood that Cyprus was a Russian front. To bailout Cyprus is one thing, but to bail out Russian Oligarchs is quite another. What else could the Euro Deciders do?
I struggle to come up with a valid comparison for what has happened in Cyprus. Think what the backlash would be if somehow the FDIC/Federal Reserve were forced to step in to bailout an entity that was a depository for the Mexican drug lords. If faced with a similar situation, America would do the same as the EU. Screw the hot money crowd.
Excerpted.
And now the other side. This is a huge development, a potential game changer. If the seizure of accounts had happened in Greece (or the other PIGS) the European Monetary Union, as we know it today, would not exist. The EU would have imploded within months. This outcome would have resulted in some form of Euro break up, and a return to national currencies. That scenario has broad global implications.
(Excerpt) Read more at zerohedge.com ...
The “Russian hot money” did not cause the crisis. It’s the Cyprus banks that played fast and loose with other people’s money. I’m sure there is a lot of Russian hot money in Switzerland too, but their banks aren’t going under.
Oh, really?
http://www.freerepublic.com/focus/f-news/2997758/posts
Have to admit the article at the link makes some sense.
Many Criminals own banks.
Really.. Think about it.. THEY ARE BLAMING THE MONEY, not the people who invested it poorly. Typical liberal spin.
Oh, so no NORMAL people live, work and bank in Cyprus?
I guess everyone that has deposits in any given bank is now responsible for both the actions of the bank AND the actions of the other depositors.
If and when this happens, which it likely will, this will set the precedent in Europe. But since it’s “only” Cyprus and the Evil Russian Oligarchs, no one seems to give a flip. The “news” here anyway is a big *yawn* and the people are not in the streets ...
Thank Uncle Ben (and a lot of cooked books) for that.
Coming soon to a bank in your neighborhood.....
In spite of the point made in the article, this move is unprecidented and a ground-changer. I predict that Cyprus
will only be the first to make this move.
High level pure theft. Legitimized by its justification.
This will happen elsewhere - with the consequences that were predicted......
Whatever is in a bank is NOT safe.
Good friend FFL (gun dealer) had his assets and accounts seized/frozen by Bank of America a month ago - even his safety deposit box. Had to arrange scheduled meeting to get his assets out, BoA bounced checks when they froze the funds even though the money was in his business account.
So, it’s already here in a slightly different form......
Remember?
When they came for the fellow down the street, I said nothing because they were not coming for me.
The EU is not seizing ONLY Russian/gangster money.
The EU is proving to itself that it can use this technique.
As for the comment made that it effects only those in the EU, remember that the “genius” that came up with the idea that tying the world’s banking system together would prevent a nuclear war because the destruction of one nation would bring financial catastrophe on all...in spite of his genius did not foresee that the law of unforeseen consequences would bring down all participating nations in any major banking melt down.
If there are runs on European banks to the extent that Europe has massive bank failures, the same system that was to have prevented nuclear war will bring down all participating nations.
We should watch very carefully what happens in Europe tomorrow.
Yes, don’t buy their lies in Cyprus. This is a trial balloon. I hope everyone who has their money in a bank in Cyprus pulls it out immediately.
btt
So the reasoning is that Russian gangster money should be stolen so that EU bankster money can be protected at the expense of the taxpayer. Got it. The problem is in the eyes of the statist we are all criminals. If we are not currently a criminal the statist will fix that by passing more laws. Once a populace allows its government to seize an alleged criminal’s money without due process, then every person’s assets are now basically forfiet. As this is a key point in their history and there is no electoral means to remove parliament members considering this monstrocity, Cypriots would be wise to use ANY means necessary to stop this.
We see this state sponsored theft on a smaller scale in the US with asset forfieture laws. We allowed police to seize the assets of susptected drug dealers and now police department pad their budgets by stealing any property they can get away with. Google Motel Caswell for a fun education in this process.
The accounts have been frozen - no withdrawals, not transfers - not even to another account in the same bank - additional Bank Holiday declared for Tuesday.
There will likely be some type of limit after that, and transfers out of country will likely be punitive.
I believe this is a trial balloon too.-
( by the WAy- everyone WILL GET TAXED- people with
over $100,00- get taxed more!)
How about they do this in AMERICA- you know, those
GREEDY rich people who have a $100,000 in a 401K-or IRA.
THEY NEED to pay -RIGHT NOW- how about an immediate 10%!?
sarc
“The accounts have been frozen - no withdrawals, not transfers - not even to another account in the same bank - additional Bank Holiday declared for Tuesday.”
You’ve been warned people.
No, the reasoning is - lets see if the European sheep notice that we are setting a precedent in confiscating private property to benefit a select group ~ the Evil Russian Oligarchy (another version of the VRWC) is simply held out as a decoy.
Cypriots would be wise to use ANY means necessary to stop this.
No one cares what the handful of Cypriots do, or do you see anything in the news about a public outcry in Europe that "Joe Six Pack" is about to loose 6% to 9% of his money to help save a few banks who made bad bets?
I have some savings myself. If Obama wants to thieve from me - he’s welcome to try.
“No one cares what the handful of Cypriots do”
The Bank Holiday suggests that they do care. Permanent bank holiday + bank bankruptcies coming soon.
Actually, no, that scenario about the Mexican drug lords is not hypothetical. Wells Fargo was caught laundering money for the Mexican drug lords early in the banking crisis. They were bailed out just like everyone else.
And the original proposed scheme was to go after 40% of Cyprus depositors’ money.
What was their reason for such an action?
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