EU: Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief

The Telegraph ^ | 3/25/2013 | Bruno Waterfield, in Brussels

[Quick Shot]

I think this will be very good for the Swiss Banks.

[Gen.Blather]

http://www.economy.com/dismal/article_free.asp?cid=232885&tid=5AB5D93B-6C42-4355-8264-60410C40EF8E

Want to read some real insanity? Click the link above. The northern EU is issuing negative yield bonds. People are paying the government to hold their money. I read where banks here had bought negative yield paper from the US as well. This may indicate that the banks, because of politics and their charters, may have no choice but to “invest” their depositor’s money in these bonds. The EU is on its death bed. Private depositors are crazy to leave their money in banks. Note that it says deposits have been declining in EU banks for some time.

[TexasFreeper2009]

um... no they wont... because now everyone will simply not put their money in the bank!

are these people REALLY that dumb?

[TexasFreeper2009]

Obama already thought of that and forced the Swiss a year or so ago (along with every other similar place in the world) to divulge the information on accounts.

They have been planning this for years. The final blow is about to drop.

[Mister Da]

There was an article posted here recently that made the point that deposit insurance is only as good as the government that provides it.

If a massive national bank failure occurs, such as in Cyprus or during the Depression, the gov’t may not have the money to cover deposit insurance claims, or may decide the money is best spent elsewhere.

Does ANYONE, under the above circumstances, expect our US government to begin sending out $100,000 checks to millions of people? Even if they did, where would you cash/deposit it?

Suggestion for future bank bailouts: The assets of the officers & directors will immediately be taxed at 100%.

[Pollster1]

Lending reasonable multiples is not a problem so long as it is a reasonable multiple. It’s when the leverage gets too high that a bank run can kill the bank. Banks globally have gone way too far in leveraging.

[Kartographer]

"You would have to assume in this case that all banks perform the same screw-up and lose investment bonds/funding in the same fashion.

That does seem to hard to assume to me considering what we've seen of so many of the biggest banks preformances.