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The European debt crisis was rumored to be over. But the recent warning shot from Cyprus indicates otherwise. Europe braced for renewed turmoil as outrage in Cyprus over an unprecedented levy on bank deposits threatened to derail the nation’s bailout and spark a new round in the debt crisis. Cyprus will impose a levy of 6.75 percent on deposits of less than 100,000 euros and 9.9 percent above that. The decision to impose losses on Cypriot depositors is the latest erosion of bondholder protection at European banks and an “ominous” sign of how bailouts are being handled, Barclays Plc said....

It's an outright theft, but since it's official government entities doing this, it's not called theft but bailout. The Cypriot government even calls it "a new beginning". (1984, anyone?) In exchange for the 10 billion euro bailout for the Cypriot banks and supposedly saving 8,000 jobs, the EU demanded that the Cypriot government confiscate 6.75 to 9.9% of deposits at the banks and exchange it with the bank "equity" (what kind of joke is this?), and that the interest on deposits be charged with 20 to 25% tax. These thefts are supposed to raise up to 7.5 billion euros. They...

Let me first (try to) give you a justification for the seizure of bank deposits in Cyprus. Everybody who knows any thing about Cyprus also knows that the domestic banks were a parking lot for Russian hot money. I wrote about this back in 2011 (Link). There are a gazillion other articles saying the same thing. That being the case, the seizure of some of the black Russian money as part of a bailout for Cyprus is not really a surprise. With dirty money flowing in, the stupid banks in Cyprus used the deposits to buy crappy assets like the...

Very few things give me nightmares… Yesterday’s event in Cyprus was one of them and the media is conspicuously silent. What do you get when you combine worldwide Marxist elitists, bankers and the media? A worldwide depression and a new dark age. The IMF (in case you are wondering who they are) is using Greece as a proving ground for the rest of us. It is a fascist Petri dish. They just implemented an across the board tax on all bank accounts over a holiday with no warning and no recourse. 9.9% if you have over 100,000 Euros in the...

ANALYST: The Cyprus Deal Could Be The 'Trigger' We Were Waiting For In Europe Matthew BoeslerMarch. 17, 2013, 10:41 AMStephen Z on Flickr On Thursday, Société Générale analysts made a prescient call on Europe. "It is far too early to dismiss euro area crisis as a key [market] driver," wrote SocGen's Vincent Chaigneau. "We fear another shockwave in the spring." As it turns out, they may not have had to wait very long. News this weekend that the ECB, EU, and IMF bailout of the Cypriot banking system will include an instant 10 percent "tax" on bank deposits before banks...

There's two bulls standing on top of a mountain. The younger one says to the older one: "Hey pop, let's say we run down there and f*** one of them cows". The older one says: "No son. Lets walk down and f*** 'em all".                           - Robert Duvall in ColorsThe world was shocked this weekend to learn that the European Union would fund the bailout of Cyprus by confiscating the assets of ordinary bank account holders.  Core Europeans and Americans no doubt comforted themselves that such a...

Cyprus's parliament on Sunday postponed an emergency session to discuss a levy on bank savings imposed to partially fund an international bailout needed to stave off bankruptcy. All meetings were postponed until Monday, the Cyprus News Agency reported. Earlier, Cypriot President Nicos Anastasiades postponed an informal meeting of lawmakers called for Sunday morning. Several parties in the 56-member chamber, where no party has an absolute majority, were meeting on Sunday morning to formulate positions over the bank levy. Three parties have already said they will not back the plan.

Yes, it is every bit as bad as it sounds, and worse. Word is that the initial plan was for a 40% (!!!!) levy confiscation of Cypriot bank accounts. They settled for a MERE 6.75% and 9.9% dual-layered compromise. Yeah, you all need to do what I have been doing for the last several months and live within spitting distance of being overdrawn in your bank accounts. In other words, keep the BARE MINIMUM in the bank and feed your account just enough to cover the bills. As soon as money comes in, get it the heck out of there....

Shocking! It is difficult to describe the weekend bailout package to Cyprus in any other way. The confiscation of 6.75 percent of small depositors' money and 9.9 percent of big depositors' funds is without precedence that I can think of in a supposedly civilised and democratic society. But maybe the European Union (EU) is no longer a civilised democracy? The consequences are unpredictable, but we are clearly looking at a significant paradigm shift. This is a breach of fundamental property rights, dictated to a small country by foreign powers and it must make every bank depositor in Europe shiver. if...

You can be forgiven for thinking that you don't need to give a hoot about what's going on in Cyprus this weekend. After all, it's just a little island somewhere in the Mediterranean. But what's going on in Cyprus could actually matter--not just to the rest of Europe, but to the rest of the world. Here's the short version of what's happening: Cyprus's banks, like many banks in Europe, are bankrupt. Cyprus went to the Eurozone to get a bailout, the same way Ireland, Greece, and other European countries have. The Eurozone powers-that-be gave Cyprus a bailout--but with a startling...

The Eurogroup reached on Friday night an unprecedented decision for bailing out Cyprus that dictates a haircut on all bank accounts on the island’s banks with immediate effect, while cash withdrawals are not allowed for the time being, generating unrest. Along with loans adding up to 10 billion euros from the European Support Mechanism, Cyprus will have to find another 7-7.5 billion euros from privatizations and from a 6.75 percent one-off haircut on all bank accounts with a balance up to 100,000 euros, rising to 9.9 percent on accounts exceeding 100,000 euros. Already bank customers are gathering outside major and...

Over the last few years political and financial leaders in Europe and the United States have implemented policies, regulations and bailouts costing global taxpayers trillions of dollars with the promise that these measures would lead to economic growth and recovery. What happened in Europe today is yet further proof that nothing they’ve done has fixed the underlying fundamental issues surrounding the events that led to the crash of 2008. For those who don’t believe the government is prepared to take extreme measures that may include the seizing of retirement accounts, cash savings or even gold, look no further than Cyprus,...

*Lines formed at ATMs as people scrambled to pull their money out *Word spread that rescue package included a one-off levy on deposits *Restrictions stopping people emptying accounts or moving money abroad *Up to 3,000 British service personnel are based on the bankrupt island *President Nicos Anastasiades agreed to raid with European finance chiefs Said country in 'state of emergency' and not acting would be 'catastrophic' But expats accused the island of 'plain theft' as violent protests sparked *Britons have around £1.7b of deposits on island and could lose up to £170m

People with Cyprus bank accounts will lose up to 10% of their savings as the price of a 10 billion euro (£8.6 billion) rescue package for the cash-strapped country from its European partners and the International Monetary Fund. The bailout was agreed early on Saturday in a bid to keep the island nation from a bankruptcy that could rekindle the region’s debt crisis. But in a major departure from established policies, the package also includes a one-off levy on the money held in bank accounts in Cyprus. Analysts have warned that making depositors take a hit threatens to undermine investors’...