Posted on 03/28/2013 12:34:05 PM PDT by Jean S
Chaos in crisis-hit Cyprus as thousands of savers rush to withdraw cash from banks which have opened for first time in two weeks
Ten of thousands of Cypriots scrambled to get hold of what savings they could today after the island's banks opened for the first time in two weeks amid tight restrictions on withdrawals.
There were chaotic scenes outside some banks, with one branch manager in the capital Nicosia forced to placate angry customers clamouring to get in ahead of opening.
Staff had turned up for work early as cash was delivered by armoured trucks, while armed police and hundreds of staff from private security firm G4S were placed on standby over fears of a run on deposits.
Cyprus's banks have been closed while the government negotiated a 10billion euro (£8.5billion) bailout to recapitalise its ailing lenders.
As part of the deal savers with more than £85,000 will lose up to 40 per cent of their cash, a measure which has prompted fury among the cash-strapped island's wealthiest residents.
(Excerpt) Read more at dailymail.co.uk ...
Excellent response/reply. The reality is when we make a deposit at a bank. They treat our deposit as a loan to the bank. Like any loan to a corporation/business, all or part can be lost if the corporation/business goes bankrupt.
“Because when you put money in a bank, it’s not YOUR money, it’s the BANK’s money!
What people don’t realize is that when they deposit money in a bank, it’s not for the purpose of the bank to hold on to THEIR money for THEIR convenience, but what they are really doing is LOANING their money to the bank! They are actually a lender and not a depositor. And once they loan the money to the bank, it’s no longer their money, it’s the bank’s money! This is all spelled out in the account agreement one signs with a bank, and by loaning your money to the bank you’re giving the bank permission to use the money you loaned them pretty much as they see fit, and there is no real guarantee that you’ll ever get back any of the money you loaned the bank!”
Boston Globe reports via AP that the city of Stockton, CA, the first muni to declare bankruptcy, has to figure out how to allocate massive financial burden equitably among creditors while meeting massive state pension obligations.
On Monday Stockton was granted Chapter 9 protection as its creditors questioned whether state pension obligations can be fully met while other debt-holders go partly paid. The issue is federal bankruptcy laws that require pension fund debts to be honored above all others. This could have huge implications across the nation, experts say.
CYPRUS HERE WE COME "The fear is that there is going to be a run on the banks. Every municipality will stop pension payments if Stockton is allowed to do it," said a bankruptcy attorney. California’s $225 billion Public Employees Retirement System (Calpers) is underfunded by $87 billion--- more money due retirees than there is in the system.
Stockton’s biggest creditors insured $165 million in bonds the city issued in 2007 to keep up with CalPERS payments as property taxes plummeted (the Obama curse). Stockton now owes CalPERS about $900 million to cover pension promises — by far the city’s largest financial obligation. Nearly two dozen California cities are now facing bankruptcy or financial emergencies — hefty municipal pension costs are getting heightened scrutiny. (Excerpt) Read more at boston.com ...
LOTTA PORK FOR POLS IN GOVT BOND ISSUES---business and individual taxpayers saddled with billions in taxes via Wall Street bonding deals states love to put together. (Jon Corzine sold muni bonds to suckers at G/S.) How very easy it is for conniving pols to get a gigantic piece of these billion dollar pies. Wall Street knows how to make money disappear faster than a cream puff at a Weight Watchers weigh-in. Read on taxpayers.
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NPR.ORG-- California School District Owes $1 Billion On $100 Million Loan
More than 200 school districts across California are taking a second look at the high price of the debt using risky financial arrangements. Collectively, the districts have borrowed billions in loans that defer payments for years — leaving many districts owing far more than they borrowed. In 2010, officials at the West Contra Costa School District, just east of San Francisco, were in a bind.
The district needed $2.5 million to help secure a federally subsidized $25 million loan to build a badly needed elementary school. President of the school board said, “We'd be foolish not to take advantage of getting $25 million” when the district had to spend just $2.5 million to get it. The only way we could do it was with a CAB [capital appreciation bond].”
Those bonds are unlike typical bonds; CABs allow districts to defer payments well into the future — by which time lots of interest has accrued and accrued and accrued. In the West Contra Costa Schools, that $2.5 million bond will cost the district a whopping $34 million to repay. (hat tip to Grampa Dave)
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Paraphrasing Saint Augustine “Without a system of justice – what is govt but a marauding band of thieves.”
Liberals think it's the governments money and conservatives think the government doesn't produce anything and really doesn't have a dime of it's own to spend without our approval, or the approval of our House of Representatives!!!
Go figure...
” Those bonds are unlike typical bonds; CABs allow districts to defer payments well into the future — by which time lots of interest has accrued and accrued and accrued. In the West Contra Costa Schools, that $2.5 million bond will cost the district a whopping $34 million to repay. (hat tip to Grampa Dave)”
The Cosa Nostra Schools will end up shoveling the obligations to the California taxpayers......until California goes BK : )
I am so plagiarizing this:
“Napolitano didn’t buy 1.2 billion rounds of ammunition to keep land grabbing French Canadians out of Detroit. “
thanks for the laugh
That's why we'll go the inflation route. Less than half the country will understand it. The rest will attribute it to greedy corporations, oil sheiks, etc.
The silver lining.
I would agree. Banks in small towns of 5k residents will just about disappear. It’ll become a cash-only society within weeks. You can figure that fifty percent of the bank employees on the island re finished...they need to find a new occupation, and move on.
Stealing money from bank accounts is illegal. It is theft. Communist governments such as ours hate it when anyone (except them) has some money put away. In their minds, there should be no private property. In their minds, the gov has the right to take it.
Too bad half the people in this country have their heads up their a$$e$ and only care about the next episode of 2 and a half a$$hole$.
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