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To: pepsionice

” It’d be closer to compare the Cyprus event to 1929 crash...which the banking sector dumped headfirst into Wall Street investments and dragged all of their customer’s money (sitting in plain checking and savings accounts) with them”

Actually, this scenario is being replayed right now in the U.S. stock market. The Fed is giving their banks pretty much all the extra spinning ones and zeros they want for practically zero interest rate, those banks in turn won’t lend those spinning ones and zeros to legitimate borrowers (too much risk), but instead make 30-day loans for a tiny markup above zero interest rate to Wall Street “investment” houses, and they in turn pump it into the U.S. stock market.

Too many spinning ones and zeros sloshing around looking for too few legitimate investments.

At this point, it seems to me that,

U.S. Fed banks + U.S. Stock Market = Russian “investors” + Cypriot banks.


24 posted on 03/24/2013 10:58:04 AM PDT by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: catnipman

The one difference I see....at the moment of ‘Black Thursday’...when the Wall Street collapse occurred in 1929....there were these unknown folks who turned on a dime and sold off in massive quantities. To this day....no one in the gov’t or media will ever say who these individuals were and where their profits went in such a hurry. Note, there was an eleven percent sell-off in a matter of minutes that morning.

I don’t see that type of situation with the Cypriot banks. Their investment activity just went down a black hole...day after day, and no one in the Cyprus gov’t, the public sector, or the banks ever acted as it was a big deal....until summer of 2012.


25 posted on 03/24/2013 11:06:31 AM PDT by pepsionice
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