Posted on 04/02/2013 10:24:37 PM PDT by 2ndDivisionVet
“Government is theft.”
The old libertarian battle cry came to mind when the news hit, two weeks ago, that Cyprus was about to confiscate 7 percent of all the insured deposits in the island’s two biggest banks. Nicosia also planned to siphon off 10 percent of uninsured deposits, those above 100,000 euros ($130,000), and use that cash as well to finance Cyprus’ share of a eurozone bailout.
The reaction was so scalding that the regime had to back off raiding insured deposits. The little people of Cyprus were spared. Not so the big depositors, among whom are Cypriot entrepreneurs and thousands of Russians. Their 10 percent “haircut” has now become an amputation.
Large depositors in the Bank of Cyprus, the island’s largest, face confiscation of 60 percent of their capital. In Laika, the No. 2 bank, which is to be euthanized, the large depositors face losses of up to 80 percent. All of Laika’s bondholders will be wiped out, and all employees let go.
When the Cypriot banks opened again on March 28, capital controls had been imposed. Only 300 euros may be withdrawn daily from a bank. Folks leaving Cyprus may take only 1,000 euros.
What has this crisis to do with us? More than we might imagine.
Last week, Jeroen Dijsselbloem, the Dutch chairman of the eurozone’s finance ministers, let the cat out of the bag. The bail-in of big depositors and bondholders, who are being forced to eat a huge slice of the Cypriot bailout, may serve as a model for future bailouts.
The hot money that came into Cyprus, said Dijsselbloem, either to be laundered or hidden from taxes, or to seek a higher rate of return, was wagered money. And when bets go bad, government is not obligated to made the gamblers whole again......
(Excerpt) Read more at humanevents.com ...
People keep demonizing the large depositors, but I wonder how many were local businesses that just had their payroll deposits stolen. We may see a lot of business failures and lay offs, including the “little people” who were promised their deposits would not be touched.
Soon coming to an American bank near you.
Once Obama’s unsupportable spending and soaring debts take hold, the economy will crash, the electorate will panic, and it’ll be Katie bar the door and everyone’s money and possessions will be “fair game.”
Bet the farm.
they won’t do it in the US... there’s no reason to.
they’ll just print more money and devalue what you’re holding.
they’ve already taken 50% of your wealth in the last 4 years... you just didn’t see it.
if you don’t understand, look up the value of your property for january of each year for the last 10 years. then look up the price of gold and silver per ounce during those same months. then calculate how many ounces of gold / silver your property was worth in each of those years.
the results will startle you
People keep demonizing the large depositors, but I wonder how many were local businesses that just had their payroll deposits stolen. We may see a lot of business failures and lay offs, including the “little people” who were promised their deposits would not be touched.
I agree with you,although some in government and banking will just consider them to be “unintended consequences”.
#4 Exactly what I explained to my son regarding how they did it there versus what they’ve done here.
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