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.
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 ...
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.
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.
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.
I don't recall any backlash when the 'To Big To Fail' money launderers in NYC were bailed out.
US regulator cites Citibank for violating money-laundering law
http://www.nypost.com/p/news/business/us_regulator_cites_citibank_for_5evpK0WcY1TvhUJQA396RL
I’ll bet North Cyprus isn’t affected by all of this bad stuff.
Finally someone gets the right perspective on this matter.
All the previous whining about poor Cypriots...and it’s still the northern part of the euro countries that is getting screwed by Brussels...again.
Bull$h!t. There is no justification. It is theft.
Deposits up to 100,000 eu were FEDERALLY INSURED. Federal insurance (think FDIC) is intended to prevent runs on banks. If they go through with giving those deposits a haircut, then the concept of federally insured deposits is irreparably damaged. It becomes meaningless. The next time the solvency of European banks is questioned, there will be MASSIVE runs on those banks. And the damage will not be stopped at the Atlantic Ocean.
This may be a turning point in history. Not a good one.
I agree that Obama is a ways away from doing this. But if you had big deposits in other failing euro countries, your money will beat feet to somewhere. You don’t get two chances to do this. So where does it go? Dollars? yen?
The list is getting shorter by the day.
This might be the Arch Duke Ferdinand moment...time will tell.
401ks and IRAs are next.