ping
In each cash in exchange for the assets you have on deposit with the bank that are frozen, you are given “shares” in the nearly bankrupt bank.
The logical outcome is that people all over the EU will move money out of their bank savings accounts and put them into other things, like fixed assets, gold, diamonds, land, or sovereign debt bonds, etc.
This could be basically be a really bad things for banks and financial institutions in general. Some credit unions which were open on Saturday essentially had a run as people tried to withdraw their money so it would not be confiscated on the formal date of next Tuesday with Monday being some kind of holiday.
This will change banking in Europe forever.
I sort of wonder if this is the idea behind the Occupy Whatever Movement's idea of tax the rich. Only it is all people who have scrimped to have a savings account as opposed to those who have not saved and are living hand to mouth and day to day.
It’s going to be a bloodbath on Wall Street come Monday.
Goldbug ping.
Try this link to read the article:
http://www.businessinsider.com/cyprus-bailout-risks-europe-bank-runs-2013-3
Karl Denninger quotes a WSJ article which calls this theft a “one-time tax”.
http://www.market-ticker.org/akcs-www?post=218812
“What’s just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian ‘black money.’ Russian ‘black money’ is KGB money, now in business. The leader of Russia (Putin) was a former KGB official. Who’s money do you think they have taken? This is the biggest mistake the IMF could possibly have ever made.”
http://www.jsmineset.com/2013/03/16/sinclair-one-of-the-most-important-events-in-history-gold/
Thank god i am Broke.......
Government policy is to protect the big banks and the big money. Screw the little guy, the saver and the pensioner while rewarding the highly leveraged mega-gambler big banks that are financially propped up by taxpayers and central banks (which they control). That is the name of this global game.
Okay, confiscating a portion of deposits is such an insanely stupid idea, I have a hard time believing it. Colour me skeptical.
If true, this is bad indeed.
Also, recall that Cyprus is divided between Greece and Turkey. Things could get messy quickly.
I can’t help but think that this is the real goal, we ( a/k/a the government) just need to get their guns away from them first. Is there a pool starting in the EU to see who gets assasinated first?
ping!
Why bother to send 10 Billion dollars to save banks that just committed suicide by stealing people’s money?
I guess I need a debit card for quick cash withdrawal....will do on Monday....
Soros is laughing.
Cypress is a member of the European Union.
If the EU allows this to stand, the taint must spread to all member states!
The EU is conducting an experiment and they have chosen to do so on a very small country.
Also, what is the difference between confiscation of 10% of your bank accounts and 10% inflation or currency devaluation (give or take a point or two of math)?