Cypriot youth protest as banks stay shut

Reuters ^ | 3/26/13 | Michele Kambas and Costas Pitas

[Kartographer]

Cypriots vented anger in the streets on Tuesday and were desperate to learn what would happen to their savings, with the government yet to reveal details of controls it will impose to prevent a run when banks reopen after a painful bailout.

A special administrator was appointed to run the country's biggest bank, which will take over accounts from the second biggest bank as part of the restructuring package designed to bail out and rein in the oversized financial sector.

Cyprus's banks were ordered to remain closed until Thursday, and even then will operate under as-yet-undisclosed capital controls imposed to prevent depositors from emptying the vaults.

[justa-hairyape]

The EU is far more of a soft tyranny - which most member states are voluntarily joining.

Actually, they were required to vote and then revote until the vote came out the way EU wanted it to come out.

[Olog-hai]

Take note that the member states are not joining due to popular demand for it, but for political reasons (right now, mostly having to do with Russia’s rise back to power, especially among the Baltic and Balkan states). In fact, popular sentiment on the ground is to do away with it—even in Germany. The EU is a project of the elites, not of the people; the vast majority of countries have had the EU rammed down their throats, and that is a fact.

I was not joking about the USSR’s constitution(s) claiming that its Soviet Republics could secede, BTW.

To every Union Republic is reserved the right freely to secede from the U.S.S.R. — 1936 Constitution, Article 17
Each Union Republic shall retain the right freely to secede from the USSR. — 1977 Constitution, Article 72

Nobody got to vote on joining the euro, incidentally; not even Ireland.

[justa-hairyape]

In every country “bailed out” with these loans, unemployment shot up.

That is because no one is actually getting bailed out. Europe is broke. It has no money. Do you think Germans all of people would just give up their money ? No. All smoke and mirrors.

This is what happened in Cyprus. Germany started selling its Greek bond holdings. Cyprus started buying Greek bonds. After the Germans were done selling, they bailed out Greece by wacking the bondholders. That was when Cyprus banks were wacked. 25 Billion in looses due to the Greek Bailout Rescue deal. There is no money. It is a zero sum gain. For everyone bailed out (Greece) someone must be wacked and made to pay for the bailout (Cyprus).

[Longbow1969]

Yes, the stealing of what was stolen continues

At least this bailout largely targets the bank shareholders and uninsured depositors instead of the Cypriot taxpayers.

[justa-hairyape]

At least half the depositors and bank shareholders are Cypriot tax payers.

[Longbow1969]

The EU is a project of the elites, not of the people; the vast majority of countries have had the EU rammed down their throats, and that is a fact.

Come on, your exaggerating badly here. I know they re-voted in Ireland till they "got it right", but I don't think there is a majority in ANY Eurozone country to leave right now. And come on, Germany? The people punish Merkel by voting for the SPD - an even bigger supporter of the Eurozone than CDU/CSU. I agree with you that the elites sold this thing. I've already told you I think it's goal was enable massive social welfare states without the potential competition (among other reasons ofcourse).

It's a mistake for you to assume your disdain (perhaps hatred) for the EU is shared by most Europeans. It's just not the case. Even with all the troubles, bailouts, etc, most Europeans still seem determined to make the EU work. I think its stupid. If I were the Greeks, for example, I'd have used the opportunity to walk away, but they didn't. I don't believe for a minute that parties like Syriza and Golden Dawn will likely last in Greece. Those are just protest votes. In the end the people don't want to leave the EU and they will go along with pretty much any bailout program once they think the EU won't budge.

[Longbow1969]

At least half the depositors and bank shareholders are Cypriot tax payers.

The vast majority of those do not have 100k Euro in the banks.

Look the banks are insolvent. It is what it is. This is a better "bailout" than just going to the taxpayers. In this case at least you penalize bank shareholders and uninsured depositors - most of whom knew perfectly well that these banks were in deep trouble. And I'm not going to shed too many tears for the Russians who've been hiding money in corrupt, broken Cypriot banks.

Would you prefer German taxpayers just hand Cyprus 10 billion dollars to get their house in order? Maybe you wish Cyprus would just take their chances and walk away from the EU? I'd love to see it myself, but it ain't going to happen. So here we are.

[garbanzo]

What’s missing from this is e human element. When you go after depositors for cash, you are violating a kind of trust that has been built up for over a hundred years. That’s the main crisis point here not who should pay for insolvent banks. You’re protecting the taxpayers but at the expense of public trust in the banking system.

[Longbow1969]

What’s missing from this is e human element. When you go after depositors for cash, you are violating a kind of trust that has been built up for over a hundred years. That’s the main crisis point here not who should pay for insolvent banks. You’re protecting the taxpayers but at the expense of public trust in the banking system.

Some of these banks are completely insolvent. Worse, it wasn't a secret that Cypriot banks were in trouble. What do you think happens when a bank collapses? Someone either bails it out (taxpayers) or the shareholders and uninsured deposits get wiped out. I agree it's a terrible situation, but a haircut on deposits over 100k Euro is better than losing everything - and it's certainly better than having the tax payers bail more banks out.

[justa-hairyape]

First of all, anyone who thinks the Russians are at fault or that Russian money is worth stealing because it is, well..., Russian, is being disingenuous. You do realize that a lot of UK money was there also. But that is okay because what, British are all just drunken gamblers ?

And how in the world can you blame the Russians for simply depositing their cash in the Cypriot banks ? They did more for Cyprus then the EU ever did. And then Cyprus tried to use that Russian money to bail out the Greeks who the Germans had already written off by selling the Greek bonds the Germans were holding. The Russians were the good guys here. The EU which destroyed Greek bond value and Cyprus bond value is the bad guy.

Germans selling off their Greek bonds before forcing a Bail Out of Greece that wiped out 75 % of the remaining bond value is unethical and their should be laws against that.

[garbanzo]

That’s kind of the point here, you’re choosing between two different evils here either making the taxpayers pay or more or less undermining the stability of the banking system. In the short term, saving the taxpayers sounds like the batter choice, but I’m deeply concerned about the stability issues that come from haircuts which take effect over longer time periods and have more dire consequences down the road.

[Olog-hai]

Most of the protests in the EU are not covered due to their being so numerous. If you think they have press freedom in the EU, think again. Populism is on the rise indeed, but it won’t break the EU apart; rather it’s going to make the elites more entrenched and the people less free, which is one of the goals of the euro.

With all due respect, you are talking like one of those people that think that China has abandoned communism, which they have not; the direction the USA is going as a result of trading too freely with them is evidence of that (“state capital[ism]” is in the Manifesto). On a similar note, do you think that Vladimir Bukovsky is exaggerating when he makes his comparisons of the European Union to the Soviet Union? He called the EU a “monster” that ought to be destroyed ASAP. Read his words carefully.

[Old Sarge]

"I Told You This Would Happen, People!!"

[Old Sarge]

Ping to #53!