like i told you last time, it's MY line... i made it up
Posted on 03/25/2013 7:32:19 PM PDT by Lorianne
Yesterday, we first reported on something very disturbing (at least to Cyprus' citizens): despite the closed banks (which will mostly reopen tomorrow, while the two biggest soon to be liquidated banks Laiki and BoC will be shuttered until Thursday) and the capital controls, the local financial system has been leaking cash. Lots and lots of cash.
Alas, we did not have much granularity or details on who or where these illegal transfers were conducted with. Today, courtesy of a follow up by Reuters, we do.
The result, at least for Europe, is quite scary because let's recall that the primary political purpose of destroying the Cyprus financial system was simply to punish and humiliate Russian billionaire oligarchs who held tens of billions in "unsecured" deposits with the island nation's two biggest banks.
As it turns out, these same oligrachs may have used the one week hiatus period of total chaos in the banking system to transfer the bulk of the cash they had deposited with one of the two main Cypriot banks, in the process making the whole punitive point of collapsing the Cyprus financial system entirely moot.
(Excerpt) Read more at zerohedge.com ...
You bet. It's always been a bit of a love/hate thing with the Russkis, though, hasn't it ? Recall that scene in PATTON.
like i told you last time, it's MY line... i made it up
I was thinking the same, so when does deposits become assets of the bank. Good thing he does not run a bank.
It’s double entry bookkeeping, of which I are an expert, having encountered it once.
There is a difference between double entry and double books, and I suspect the latter in this case.
Somebody’s a halfwit, but it isn’t Tyler Durden.
Simple double entry bookkeeping provides the entire rationale for a bank, in iconic form. People give the bank money for keeping, and are paid interest on that money in return, and may withdraw the interest and principal at any time. What a contract! How can the bank swing it? How can the bank swing it with no assets and only liabilities?
It makes perfect sense to close the banks until the bank officials and Roosians get their money out. After all, it’s the people’s country—make them pay for it.
Why don’t you calm down?
I mean, what’s it to you? You work for the ECB or something?
Threatening haircuts causes capital flight as much as actually doing it, especially when it was stopped at the 11th hour.
Switch to decaf.
Thanks for posting. ZH is doing an extraordinary job following Cyprus. It is very interesting. BE PREPARED.
Cyprus is screwed anyway! How many depositors are going to remain when the banks open? How are they going to regulate that?
I guess we’ll find out.
“But that could never happen here.”
You forgot the sarc/ ; but, something so blatant is not/would not be necessary. Actually, we’ve been getting screwed for sometime now. Have you heard of QE1, QE2, Simulus packages, etc? Whenever the feeds print Monet they’re taking money out of our savings, 401K’s, IRA’s, home equity, land, anything if value. Buying power has been diminishing each time money is printed. Example is price of gasoline. Devaluation of dollar means it cost more dollars to buy anything on the international market, such as crude oil. So, why would our government want to be so obvious by openly taking, say 10% off of the top of folks bank holdings? The way they’re doing it here in the good ole U.S.A. Is quite stealthy and pretty darn slick if I must grudgingly must admit. Blowing it right by those low information voters for sure. But, on the other hand most if them don’t have any savings anyway, so what the hell....
The way they’re doing it here in the good ole U.S.A. Is quite stealthy and pretty darn slick if I must grudgingly must admit. Blowing it right by those low information voters for sure. But, on the other hand most if them don’t have any savings anyway, so what the hell....
When and if they ever wake up, they will say “Its Bush’s fault.”
Heh... The idea that it could not happen here is funny. Kind of like those that deny that the Fed could not keep buying debt without causing inflation...heh. We have long since past the common sense stage and are now in the “what if” stage... Welcome to the new world - Thanks to the Feds.
Do you really have any doubt? Would you not remove you savings under the circumstances?
I would remove me, for sure.
Speaking of “- - - Russian billionaire oligarchs - - -, “ just how many Russian billionaire oligarchs does it take to rob a bank, any bank?
Hmm....
Leave my money (earning a massive .25% interest per annum) in a bank savings account that may be inaccessible for 5-10 days or more or cash out and bury it in the back yard where I can get it with a shovel in 10 minutes.
Decisions, decisions....
Remember, it's not a bank run if you get out the day before the run starts.
Heh...
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