Big depositors in Cyprus could lose up to 60 percent of savings

Reuters via nbcnews.com ^ | March 30, 2013 | Karolina Tagaris

[blueunicorn6]

What does our government fear? What they fear, they will work to defend against.

[pieceofthepuzzle]

Thanks, but you’re missing the biggest point, which is that it was the socialism within Cyprus that led to their ridiculous financial situation that is now leading essentially to confiscatory economics. The same is true in Greece, and across Europe.

The financial crisis in this country also has huge, huge, roots in socialism, and I would argue that socialism is at the root of the vast majority of financial disasters around the globe.

All investments, savings, and the value of the cash you might stuff in your mattress, is dependent upon the solvency of the system. When socialism destroys the solvency of the system it is not a capitalist market correction to just take from those who have tried to play by the general rules.

[yefragetuwrabrumuy]

The big headline today was that Obama and company are also vying to tax municipal bonds, that would effectively shut down hundreds or even thousands of cities and municipal water and sewer and power projects nationwide.

Carter suggested doing this once, and was shouted down, but Barry has now suggested it five or six times. There is no amount of money too small for them to try and seize.

[B212]

The more I read on this Cyprus bank situation, the more I conclude, most folks, don't understand how a bank operates....when you take $5000 to the bank and “give” that to the bank for safe keeping (sic)....the bank loans out that money to a car-dealer, to buy new stock, a real estate developer to build new homes, your $5000 is not/not siting in a strong box in the banks basement.....within hours it is loaned out....gone gone down the road....hence, if the car dealer fails, then a portion of your savings is gone...fortunately if the failure is small, then other depositors pickup the slack....but if the whole country goes into default, then your money is gone...government deposit insurance will cover to a certain amount, but what happens if the government can't cover the losses?

So, don't think, you can run down to the bank, on a rainy day, and withdraw your $5000, because, you agreed to limit your withdrawals when you signed on to the bank....so on any day you arrive and want your money back, the bank can say, sorry old chap, come back in 5 days.....what the EU, has done, is exposed the fraud that most banks are...and destroyed the confidence that most have in the system....

[vikzilla]

Why aren’t these people storming the castles of power and burning them to the ground. if it were to happen hear there”d be a line a thousand deep and lighters would be the next investment bubble

[Caipirabob]

From Russia with love: "Vee haf complaint..."

I'm on their side. If they don't get cash, the should receive collateral until said cash owed is made good.

[Alberta's Child]

It doesn't get a lot of attention here, but what you're seeing here in the U.S. is a slight shift away from banks as a source of financial instruments -- from both sides (the depositor and the borrower).

From the depositor's perspective, this is being driven by low interest rates. People who have money to "save" are instead doing something else with it. They're either spending it now or investing it somewhere other than traditional bank instruments like CDs and savings accounts.

From the borrower's perspective, a lot of them are finding that tighter lending practices by banks have driven them to non-traditional sources of capital. My company does a lot of work with real estate developers, and more and more of these projects are being financed through private equity rather than bank loans.

I wonder what our financial system would look like in a hypothetical scenario where banks were eliminated completely from the private finance market.

[skimbell]

"Lead & brass = ammo."

That'll be the new currency, Here's the new Mint.

[csmusaret]

Think it can’t happen here?...http://investmentwatchblog.com/u-s-department-of-homeland-security-has-told-banks-in-writing-it-may-inspect-safe-deposit-boxes-without-warrant-and-sieze-any-gold-silver-guns-or-other-valuables-it-finds-inside-those-boxes/

[Oatka]

Like those rebellions?

EXACTLY. When NAFTA was first proposed, I printed out what it would give away and passed them out to people in an attempt to alert them. Response? Deer-in-headlights or "right wing kook".

One of my boys worked on a railroad in Monroeville, AL and had his helmet marked with "NAFTA" and the International "NO" slash over it and tried to warn people who worked at a Vanity Fair plant about the treaty. Same reaction. A year later the plant went to Mexico, some people came to him wanting to lead a protest. He told them "Why didn't you contact your Reps about NAFTA?" The response, "Whut's a NAFTA?"

[Carriage Hill]

Sweet! I truly wish I’d learned how to do it, and bought the equipment and supplies, years ago. My 2 uncles used to reload their hi-po hunting ammo, and I always watched in total amazement, as a 6-7yr old kid.

But with ammo so cheap and plentiful over the past 10-11yrs, I’ve amassed a stockpile (for 7 calibers & 1 ga), which any FFL would envy.

[Domalais]

The fix for socialism is not more socialism.