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Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief
The Telegraph - UK ^ | 26 March 2013 | Bruno Waterfield

Posted on 03/26/2013 5:09:41 AM PDT by MeneMeneTekelUpharsin

Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced. The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy. The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.

"If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?'," he said. "If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders."

Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; Germany; Government; Israel; News/Current Events; Russia; United Kingdom
KEYWORDS: banks; confisaction; cyprus; euro; europeanunion; germany; greece; israel; russia; turkey; unitedkingdom
Uh oh. It's spreading.
1 posted on 03/26/2013 5:09:42 AM PDT by MeneMeneTekelUpharsin
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To: MeneMeneTekelUpharsin

My big worry is efforts to convert 401k assets to federal IOUs, uh, I mean Gubmit Bonds.


2 posted on 03/26/2013 5:16:46 AM PDT by AU72
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To: MeneMeneTekelUpharsin

I think I’m going to the bank today.


3 posted on 03/26/2013 5:17:08 AM PDT by moovova
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To: MeneMeneTekelUpharsin

Look for bank runs everywhere in Europe.The guy’s not too stealthy by making a statement like this.


4 posted on 03/26/2013 5:17:47 AM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: MeneMeneTekelUpharsin

Today it is Cyprus bailout, yesterday Greece, tomorrow Spain or is it Italy, Ireland, or eslewhere.

We have a perpetual rolling bailout, and soon a Eurozone Crisis/Crises Fatigue. Healines of ‘such and such crisis’ will no longer have meaning even if it spread out throughout the world.

Except when IT hits you and me personally.


5 posted on 03/26/2013 5:21:41 AM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: moovova

A prudent person would start going to their bank once a week. Kind of a slow motion run.
Just sayin.


6 posted on 03/26/2013 5:23:02 AM PDT by Texas resident (I'm not a lawyer, but I play one on FR)
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To: AU72

and someday, if and when that happens, payments back from new govt bonds issued to replace seized retirement accounts will be means-tested, like soon to be social security, so you only get back according to your “need” and you get to “contribute” to others who have “needs”

It is the ultimate grand redistribution of wealth of the middle class (the uppers will always have shelter and advance warning)

How many years left? 3? 4? 10?


7 posted on 03/26/2013 5:25:59 AM PDT by silverleaf (Age Takes a Toll: Please Have Exact Change)
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To: MeneMeneTekelUpharsin

Coming to the USA soon


8 posted on 03/26/2013 5:26:19 AM PDT by GlockThe Vote (The Obama Adminstration: 2nd wave ofo attacks on America after 9/11)
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To: Farmer Dean

The bank of choice has just become precious metals stuffed under the mattress.

Diamonds may be a good alternative. And who knows, they may be easier to obtain than precious metals, for which there may be a call to confiscate.

For traveling money, keep some stuffed down in the sock as well. And look for unguarded border crossings.


9 posted on 03/26/2013 5:26:31 AM PDT by alloysteel (Every generation laughs at the old fashions, but follows religiously the new.)
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To: MeneMeneTekelUpharsin; SpinnerWebb

Pull this crap on your own and they put you in prison.


10 posted on 03/26/2013 5:30:37 AM PDT by tx_eggman (Liberalism is only possible in that moment when a man chooses Barabas over Christ.)
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To: MeneMeneTekelUpharsin

“Uh oh. It’s spreading.”

And Wall Street says rally on... wtf is going on here?


11 posted on 03/26/2013 5:31:40 AM PDT by wolfman23601
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To: MeneMeneTekelUpharsin

Are they trying to kill the credit industry?


12 posted on 03/26/2013 5:32:02 AM PDT by 1010RD (First, Do No Harm)
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To: Farmer Dean

This man’s arrogance is startling. To publicly announce that this is a future acceptable action is proof of a level of hubris we have not yet seen even from the Eurocrats.

If the PIIGs don’t start seeing banks runs soon, we will know for certain that the minions of Europe will submit to anything. That is very frightening.

Bammy and his cretinous followers are watching this very carefully. Europe is their template.


13 posted on 03/26/2013 5:34:49 AM PDT by ChildOfThe60s (If you can remember the 60s.....you weren't really there)
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To: MeneMeneTekelUpharsin

Time to transfer your savings to a mason jar.


14 posted on 03/26/2013 5:37:36 AM PDT by The_Victor (If all I want is a warm feeling, I should just wet my pants.)
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To: MeneMeneTekelUpharsin
I wonder where Mr Dijsselbloem keeps his money.

5.56mm

15 posted on 03/26/2013 5:38:11 AM PDT by M Kehoe
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To: wolfman23601
And Wall Street says rally on... wtf is going on here?

Anyone that is not truly spooked right now is really dense.


16 posted on 03/26/2013 5:39:08 AM PDT by ChildOfThe60s (If you can remember the 60s.....you weren't really there)
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To: MeneMeneTekelUpharsin

Wow — I can’t think of a better, more effective way to crash banks than to create hysteria about savings account confiscation.


17 posted on 03/26/2013 5:41:25 AM PDT by ScottinVA (Gun control: Steady firm grip, target within sights, squeeze the trigger slowly...)
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To: MeneMeneTekelUpharsin

Oh Dear Lord in Heaven protect us. The EU is falling apart and John Kerry is our Secretary of State.


18 posted on 03/26/2013 5:43:23 AM PDT by old and tired
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To: ScottinVA

Humanist dummasses...

What - do they think people will just leave their savings in banks vulnerable to confiscation?

No, they’ll pull it all out, and the government will have to steal it the way our government is stealing it - debauching the currency through the printing of money.


19 posted on 03/26/2013 5:43:38 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: M Kehoe

Same place as Christine LaGarde and other IMF “diplomats” keep their tax-free salaries

IMF slogan: Tax free, Not for thee, but OK for me

Psst: I wonder if the Russians have heard that Puerto Rico is for sale?


20 posted on 03/26/2013 5:47:19 AM PDT by silverleaf (Age Takes a Toll: Please Have Exact Change)
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To: MeneMeneTekelUpharsin
Coming to a bank near you soon.
21 posted on 03/26/2013 5:50:59 AM PDT by KeyLargo
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To: silverleaf

As the informed FReepers have already read, the Russian bad boys have already emptied their Cyprus bank accounts via Cyrus branches in Russia and UK.

We are already in a (masked by printing money & fabricating economics stats in the USA) depression. What’s the next step down?

Meet Mad Max?


22 posted on 03/26/2013 5:57:15 AM PDT by ChildOfThe60s (If you can remember the 60s.....you weren't really there)
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To: moovova

March 26, 2013 12:00 A.M.
Cyprus: Can It Happen Here?
Quantitative easing is another way to steal your savings.

By Thomas Sowell

That is in fact already happening. When officials of the Federal Reserve System speak in vague and lofty terms about “quantitative easing,” what they are talking about is creating more money out of thin air, as the Federal Reserve is authorized to do — and has been doing in recent years, to the tune of tens of billions of dollars a month.

When the federal government spends far beyond the tax revenues it has, it gets the extra money by selling bonds. The Federal Reserve has become the biggest buyer of these bonds, since it costs them nothing to create more money.

This new money buys just as much as the money you sacrificed to save for years. More money in circulation, without a corresponding increase in output, means rising prices. Although the numbers in your bank book may remain the same, part of the purchasing power of your money is transferred to the government. Is that really different from what Cyprus has done?

http://www.nationalreview.com/articles/343890/cyprus-can-it-happen-here-thomas-sowell


23 posted on 03/26/2013 6:04:33 AM PDT by KeyLargo
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To: ChildOfThe60s

I guess the financial “crises” will become a much more common event now.../s


24 posted on 03/26/2013 6:05:57 AM PDT by jsanders2001
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To: MeneMeneTekelUpharsin

This statement was beyond dumb. Almost like they are trying to “create” a bank run.


25 posted on 03/26/2013 6:06:38 AM PDT by swamprebel (a Constitution once changed from Freedom, can never be restored.)
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To: MeneMeneTekelUpharsin

I would think Swiss banks would be the beneficiaries of such talk.


26 posted on 03/26/2013 6:08:04 AM PDT by Mister Da (The mark of a wise man is not what he knows, but what he knows he doesn't know!)
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To: MeneMeneTekelUpharsin
Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks

If the Euro and banks are such a failure that it requires the looting of saving accounts then they should get rid of the Euro and the banks. But then again the whole point of the Euro IS to fail so that they can loot the saving accounts and force the euro nations to give up more and more sovereignty. And when the people are completely broke they will cry out for some one to save them and the very Globalist Banksters that impoverished the people will be ready with a solution: A One World Government, a One World Currency and a One World Bank that the Banksters own and control.

27 posted on 03/26/2013 6:17:37 AM PDT by Count of Monte Fisto
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To: GlockThe Vote

You’re behind the times.
The Federal Reserve and Federal Government have been robbing us a few percent per year since the Fed was first incorporated. Your dollar today is worth about $.05 when the Fed was incorporated. Maybe less.


28 posted on 03/26/2013 6:17:49 AM PDT by Little Ray (No "Comprehensive" Immigration Reform. Fortifiy the Borders First.)
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To: wolfman23601
"And Wall Street says rally on... wtf is going on here?"

Several factors are keeping Wall street flying high imho. 0% interest from the banks means people are wanting some kind of return and are willing to gamble their money to make more, investment from foreign currency in our markets as a safe haven (which will only increase now) and the false sense of prosperity that $14,500 DOW index is giving people. (Until you factor in the devaluation of the dollar since 2008.)

I have been a glass half full kind of guy since I was a kid, but lately, especially after spending the last 3 weeks trying to find a lousy box of .22 shells for my kid and having no luck at all, I am really starting to be convinced I need to start prepping in a serious way.

29 posted on 03/26/2013 6:41:05 AM PDT by Abathar (Proudly posting without reading the article carefully since 2004)
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To: MeneMeneTekelUpharsin

During a run on a bank its best to show up early before the crowd does. Sounds like now is the time.

Gold?


30 posted on 03/26/2013 7:08:03 AM PDT by sickoflibs (To GOP : Any path to US citizenship IS putting them ahead in line. Stop lying about your position.)
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To: MeneMeneTekelUpharsin

Cyprus is the break in the wall of infinite printing. Bernake has been funneling trillions of FED zero percent dollars to the Euros trying to save their banking system. This has failed, as predicted, and now we are moving into the haircut / bank run phase. All trust in the international financial system will soon begin to erode and everyone will circle the wagons.

The elites at the top of this blatant stealing of depositors money will soon discover the nature of unintended consequences. When depositors and savers start looking at their mattress as more secure than a bank, the fractional reserve banking system will rapidly collapse with nothing to leverage but other suckers promises to pay in the future if things go bad (i.e. the shadow quadrillion derivative market). Bernake has pumped for 5 years trying to save the derivative death star while refusing to reign his buddies in. Looks like that chapter is coming to a close one way or another as the Euro has now set down the path of depression banking.


31 posted on 03/26/2013 7:15:02 AM PDT by Gen-X-Dad
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To: MeneMeneTekelUpharsin
I wouldn't be a bit surprised to see this spread, including here to the United States. I expect to hear of people pulling their money out of banks to avoid this, causing banks to fail. Then there will be much wringing of hands and moaning.

Liberals are such morons.

32 posted on 03/26/2013 7:24:17 AM PDT by MEGoody (You shall know the truth, and the truth shall make you free.)
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To: MeneMeneTekelUpharsin

I can’t wait to see what Nigel Farage has to say regarding this obvious failure of the Euro and Eurozone dictatorship.


33 posted on 03/26/2013 7:37:26 AM PDT by MHGinTN (Being deceived can be cured.)
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To: MeneMeneTekelUpharsin

That’s a warning. Italians get your money out of the bank now!


34 posted on 03/26/2013 7:38:09 AM PDT by I want the USA back (Pi$$ed off yet?)
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To: wolfman23601
"And Wall Street says rally on... wtf is going on here?

Look to the volume of shares traded. Compare today with 2007 before the slide and the only answer is the slush fund bailouts are doing the buying. As long as the "market" shows anything up, the low information doofusses think it is all good.

I heard something like the volume was 3.x billion before the housing bubble bursting and lately it has been about 500K.

Just do a google for "stock market volume history" and the list of stories on this is full of examples.

35 posted on 03/26/2013 7:45:03 AM PDT by mazda77
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To: MeneMeneTekelUpharsin; All

What’s the real problem with what this guy has said?
He is saying in effect, end ‘too big to fail’ in Europe and let failing banks fail. Insured deposits remain guaranteed, it is those who invested in the bank, or have accounts over 100k Euro that would take the loss.
They’re trying to end the moral hazard they created by socializing the bank losses in the first place.
What he said is truly what needs to be done, is the problem just that he said it out loud?


36 posted on 03/26/2013 8:42:32 AM PDT by Gunslingr3
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To: MeneMeneTekelUpharsin
Yeah, that would sure encourage me to open a savings account, all right.

"Guten morgen, Herr Drill, and welcome to our bank! Here's yer toaster."

"Danke sehr."

"Ze gut news is zat ze toaster iss yours. Ze bad news iss zat ze money iss ours."

37 posted on 03/26/2013 8:47:53 AM PDT by Billthedrill
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To: wolfman23601

The guys in Brussels are trying to keep the ponzi scam running. Unfortunately folks are starting to realize that the folks in Brussels will have advance warning when the bank system will go down the tubes since they will cause it. Look for bank runs through out Europe starting basically now.


38 posted on 03/26/2013 9:51:46 AM PDT by Nebr FAL owner
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To: M Kehoe

In a safe deposit box guarded by the gnomes of Zurich,Geneva.


39 posted on 03/26/2013 9:56:38 AM PDT by Nebr FAL owner
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To: wolfman23601
And Wall Street says rally on... wtf is going on here?

Democrat administration. If it were a Republican administration, the media would have already started bank runs here.

40 posted on 03/26/2013 10:07:12 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: MeneMeneTekelUpharsin

Dear government(s). You do not own our money. You do not have the right to take it. Private property existed before you formed your government.


41 posted on 03/26/2013 12:54:14 PM PDT by I want the USA back (Pi$$ed off yet?)
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To: AU72

Actually, they want to take your private retirement funds, pool them in “safe investments” and redistribute them to replace Socialist inSecurity. Dems have the legislation all ready to slam through in our government debt coming “crisis.” That is why Obama is trying to run down Social Security and Medicare so he can create the crisis for the elderly. He’s spending Social Security money on generous SSI benefits and he’s cutting Medicare to cover part of the cost of Obamacare.


42 posted on 03/26/2013 3:36:57 PM PDT by SaraJohnson
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