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Big depositors in Cyprus could lose up to 60 percent of savings
Reuters via nbcnews.com ^ | March 30, 2013 | Karolina Tagaris

Posted on 03/31/2013 1:36:58 AM PDT by John W

Major depositors in Cyprus's biggest bank will lose around 60 percent of savings over 100,000 euros, its central bank confirmed on Saturday, sharpening the terms of a bailout that has shaken European banks and saved the island from bankruptcy.

Initial signs that big depositors in Bank of Cyprus would take a hit of 30 to 40 percent - the first time the euro zone has made bank customers contribute to a bailout - had already unnerved investors in European lenders this week.

But the official decree published on Saturday confirmed a Reuters report a day earlier that the bank would give depositors shares worth just 37.5 percent of savings over 100,000 euros. The rest of such holdings might never be paid back.

The toughening of the terms will send a clear signal that the bailout means the end of Cyprus as a hub for offshore finance and could accelerate economic decline on the island and bring steeper job losses.

(Excerpt) Read more at worldnews.nbcnews.com ...


TOPICS: Business/Economy; News/Current Events; Russia
KEYWORDS: cyprus
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To: John W

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


61 posted on 03/31/2013 7:28:32 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: Domalais

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.


62 posted on 03/31/2013 7:35:25 AM PDT by pieceofthepuzzle
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To: BruceS

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.


63 posted on 03/31/2013 7:38:54 AM PDT by yefragetuwrabrumuy (Best WoT news at rantburg.com)
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To: John W
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....

64 posted on 03/31/2013 7:39:23 AM PDT by B212
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To: Jack Hammer

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


65 posted on 03/31/2013 7:49:35 AM PDT by vikzilla
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To: John W
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.

66 posted on 03/31/2013 7:51:39 AM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: B212
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.

67 posted on 03/31/2013 8:30:58 AM PDT by Alberta's Child ("I am the master of my fate ... I am the captain of my soul.")
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To: carriage_hill
"Lead & brass = ammo."

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


68 posted on 03/31/2013 11:43:54 AM PDT by skimbell
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To: John W

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/


69 posted on 03/31/2013 11:44:33 AM PDT by csmusaret (America is more divided today , not because of the problems we face but because of Obama's solutions)
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To: freedumb2003
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?"

70 posted on 03/31/2013 12:29:19 PM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: skimbell

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.


71 posted on 03/31/2013 3:28:42 PM PDT by Carriage Hill (The most insidious power the news media has, is the power to ignore.)
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To: pieceofthepuzzle

The fix for socialism is not more socialism.


72 posted on 03/31/2013 10:59:41 PM PDT by Domalais
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