Posted on 03/17/2013 11:30:42 AM PDT by ransomnote
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 did it after the last financial markets in the world (US) closed for the weekend. People cannot withdraw money over the weekend, as ATMs have been stopped. (Zero Hedge has more information on the theft, including this post.)
According to reports, Germany and IMF initially wanted 40% of deposit money confiscated, not 9.9%.
(Excerpt) Read more at ex-skf.blogspot.com ...
And America.
The Russian Mafia is going to light up some people for this.
I speculated on another thread that the Russians have been trying to “buy” their way into Cyprus to gain an year-round warm weather port for their Navy......If so, and this move is a backhanded attempt to stop that, things could indeed get very dicey.
Supposedly the mob accounts got the heads up opportunity to get out before the haircut.
Note they use the word “haircut” to disguise what they really mean
Even if they did get advanced warning,they may want to send a message to NOT try that again.
Indeed. Just where do you think those 10 billion bailout euros come from? Thin air? Or OTP (Other People's Money)? Eurobama's stash?
It isnt a trial balloon, and the author of the article is an idiot.
The money is gone. All gone. Cyprus has no money to pay depositors anything at all. Nothing.
To pay their depositors...to even keep the ATMs supplied with electricity, Cyprus must borrow money from foreign banks or governments.
The EU said OK, for a 10% tax.
The idiot author of the article thinks that means that 90% of Cyprus bank deposits exists.
It doesnt.
There is 0% available.
Cyprus depositors can have 0% or 90%.
Of course, the reality is that banks in Greece, Spain, and Italy are in the same boat...and depositors there will want to withdraw their money before they get hit with the Cyprus tax.
Bank run!
Morgen die ganze Welt...
Confiscated? There was nothing left TO confiscate, except for some numbers on some pieces of paper some unlucky people hold in their hands. Those banks are BROKE, BANKRUPT. The money is GONE. Like Monty Python's parrot, they've long ago "shuffled off their mortal coil, run down the curtain and joined the bleedin' choir invisibile!!!"
How do folks keep getting this bass-ackwards?
This will come here too. As is always done in the USA, they do what they want to do, deny that they are doing it, give it a nice name, and then go right on doing what they want to do.
Some folks don't seem to get that each and every single euro given to those banks is a boon to those account holders, and, of course, is confiscated from other people.
The title of the article states false information. This was done by the EU, not the IMF.
Maybe time to start “easing” the money out of the bank and into the mattress...
They should. Not that anyone should advocate what the Russian mob does, but theft by government should never be tolerated.
If they did (likely) they did because they are in bed with the statist politicians - as expected.
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