Cypriots Stunned by Forced Savings Cuts

[charliebrown]

Re: Cypriots Stunned ..ngs Cuts

In Cyprus by itself a bank run is not a big deal to the world. No, contagion is what is to fear. Now stealing bank deposits is an option in the eurozone, who will be next, who will worry they are next and take pre-emptive actions.

[jpatter666]

Re: Cypriots Stunned ..ngs Cuts

In Cyprus by itself a bank run is not a big deal to the world. No, contagion is what is to fear. Now stealing bank deposits is an option in the eurozone, who will be next, who will worry they are next and take pre-emptive actions.

Agreed, it was a horrible, *horrible* blunder.

Even if they back away, the damage is done in that they *tried* to do it. And no one is going to believe pronouncements that this won't happen again. After all, this is the land of "when the going gets tough, that's when you have to lie".

[ProdigyofZen]

Re: Cypriots Stunned ..ngs Cuts

Agreed, it was a horrible, *horrible* blunder.

Even if they back away, the damage is done in that they *tried* to do it. And no one is going to believe pronouncements that this won't happen again. After all, this is the land of "when the going gets tough, that's when you have to lie".

I am not so sure. This will be seen as a small country that had its savings accounts taxed because it was being used as a tax haven for wealthy Russians etc.

No one will believe their governments will do that to them.

[jpatter666]

Re: Cypriots Stunned ..ngs Cuts

I am not so sure. This will be seen as a small country that had its savings accounts taxed because it was being used as a tax haven for wealthy Russians etc.

No one will believe their governments will do that to them.

PoZ I'm sure that's the spin and it even might be the truth.

Do you think that will make one whit of difference to the average guy in the street who has his life savings in the bank? If you had substantial money in Italian or Spanish banks (or hell, any EU bank) you're not feeling the *slightest* bit unsettled?

The banking system is based on trust. That trust got a serious whack to the head today for EU banks -- especially considering they dipped below the 100K account level. If they had stuck it to 100K and above you might have been able to get away with it. There was never an explicit guarantee there.

[ProdigyofZen]

Re: Cypriots Stunned ..ngs Cuts

PoZ I'm sure that's the spin and it even might be the truth.

Do you think that will make one whit of difference to the average guy in the street who has his life savings in the bank? If you had substantial money in Italian or Spanish banks (or hell, any EU bank) you're not feeling the *slightest* bit unsettled?

The banking system is based on trust. That trust got a serious whack to the head today for EU banks -- especially considering they dipped below the 100K account level. If they had stuck it to 100K and above you might have been able to get away with it. There was never an explicit guarantee there.

The average guy on the street is not you or I. Most people are too concerned with living their life, partying or vacation to care about what happened in Cyprus and to think it could happen to them.

I work at an investment firm where most of the people believe that bonds will not be affected as much as people think in a rising rate environment.

We just had a meeting where our "director" of research returned from investment meetings in Socal and stated that the funds there believe the US will be energy independent not in 10 years (as is the average projection) but in 5 years.

....................

I don't have words.

[verdo]

Re: Cypriots Stunned ..ngs Cuts

This is probably one of largest bank heists I've seen in my lifetime. Sure, you can compare this to MF Global, but at least the people who lost money there were taking some sort of risk (if im not mistaken). These are savers who thought wrongly that they were taking zero risk by placing their cash into a simple bank account

[shiny!]

Re: Cypriots Stunned ..ngs Cuts

Agreed, it was a horrible, *horrible* blunder.

Even if they back away, the damage is done in that they *tried* to do it. And no one is going to believe pronouncements that this won't happen again. After all, this is the land of "when the going gets tough, that's when you have to lie".

I don't see this as a blunder at all. It was a very calculated move. If it works for them, it works. They learned something and will try to apply what they learned elsewhere. If it doesn't work they'll backtrack and say it was a blunder, an innocent mistake. Somebody will be fired for having such a "stupid" idea. They'll go back to the drawing board and try to come up with the next scheme to save the banksters.

[jabberwocky]

Re: Cypriots Stunned ..ngs Cuts

The average guy on the street is not you or I. Most people are too concerned with living their life, partying or vacation to care about what happened in Cyprus and to think it could happen to them.

I work at an investment firm where most of the people believe that bonds will not be affected as much as people think in a rising rate environment.

We just had a meeting where our "director" of research returned from investment meetings in Socal and stated that the funds there believe the US will be energy independent not in 10 years (as is the average projection) but in 5 years.

....................

I don't have words.

Wow.
Scarey. Thanks for that insight, POZ.

[jpatter666]

Re: Cypriots Stunned ..ngs Cuts

I don't see this as a blunder at all. It was a very calculated move. If it works for them, it works. They learned something and will try to apply what they learned elsewhere. If it doesn't work they'll backtrack and say it was a blunder, an innocent mistake. Somebody will be fired for having such a "stupid" idea. They'll go back to the drawing board and try to come up with the next scheme to save the banksters.

Most blunders start out as calculated moves -- incorrectly calculated ones. But there are always consequences and sometimes the consequences are worse than the original situation.

[lektrode]

Re: Cypriots Stunned ..ngs Cuts

Most blunders start out as calculated moves -- incorrectly calculated ones......

[don]

Re: Cypriots Stunned ..ngs Cuts

Resistance in Cyprus Grows . . .

(torn from today's headlines)

[jk]

Re: Cypriots Stunned by Forced Savings Cuts

Cypriot banks to remain closed until Thursday.

how are they ever going to open again? only with limits on daily/weekly/monthly withdrawals. it's hard to believe there won't be bank runs in spain and italy, and perhaps france. and the pound will benefit from inflows- yes, there was a run on northern rock, but not the whole system. and everyone knows the bank of england will print as necessary. but the biggest beneficiary will be the dollar. secondarily - perhaps- gold.

[jpatter666]

Re: Cypriots Stunned by Forced Savings Cuts

Well, see what you would do!

http://crookedtimber.org/2013/03/19/...and-of-surpyc/

[don]

Re: Cypriots Stunned by Forced Savings Cuts

A vote scheduled for Tuesday on the divisive measure, part of a European Union bailout, probably will not pass despite modifications that exempt small depositors, the Cypriot president said.

Apparently Cypriots, and others, were vocal enough to ward off this particular looting. Meanwhile here in the Land of the Free, the majority of the sheeple are ignorant of the event, while remaining in the default, bend-over position . . .

[littleshark]

Re: Cypriots Stunned by Forced Savings Cuts

Apparently Cypriots, and others, were vocal enough to ward off this particular looting. Meanwhile here in the Land of the Free, the majority of the sheeple are ignorant of the event, while remaining in the default, bend-over position . . .

They come to you tomorrow, in the USA, and say they're taking 5% of your savings for the good of the country and it fixes the fiscal deficit and brings down debt/gdp, you sit there and you take it. What's the alternative, for a 5% hit, pick up and move? Where, to another country that's going to do the same thing? Most people will belive their govt that tells them it's for the good of the country, so get ready and accept it. I'm not saying it's good, but most have no alternative but to accept, you can argue the fact that contract law has been broken all day long, it's just that it's never existed in these circumstances to begin with.