Europe Announces Stunning Bailout For Cyprus — Bank Depositors To Get Instant 10% Tax Before Banks Reopen This Week en-us Wed, 31 Dec 1969 19:00:00 -0500 Sat, 27 Dec 2014 02:26:03 -0500 Roderick Thomson Laka Sun, 17 Mar 2013 10:26:34 -0400 Remember, don't call this theft, nor confiscation, nor outright larceny. This is "reallocation." The bright side is that this will reinforce the position of real banks in civilized countries, where people's money is not "reallocated" by ambush. What kind of fool would ever again deposit money in a Cypriot bank? old44 Sun, 17 Mar 2013 10:13:46 -0400 No, the germans profit from the EU and have a strong economy because they have a strong work ethic, something that is missing in the Mediterranean countries who mostly believe in long lunches, extensive social security and early retirement. shan1991 Sun, 17 Mar 2013 07:26:03 -0400 How much longer will the Euro tolerate bailouts for Greece. Slapping a withholding Tax without notice is crime dressed in legislation. The 9.9% and 6.75% aren't the issue here, its the fact that a % is being applied at all, whats stopping them from seizing all they want to rectify the bailout? DoubtingRich Sun, 17 Mar 2013 06:10:15 -0400 I am a rational person, with a degree in hard sciences from a good university. My job is such that panic is not a survival option, I must be able to deal with sudden problems quickly but calmly, and have done so in the past. Just to establish that I am not one to accept conspiracy theories or to act in a rash manner. If I was living and banking in Spain, Greece, Portugal, Italy or Ireland I would be in the bank at 0900 on Monday closing my account; I would probably transfer the funds to the UK, Sweden or Denmark (outside the Euro zone, but within the EU) or buy gold but might simply take the cash. If I was living in Slovakia, France or Belgium I would be thinking seriously about doing the same thing. So if I, on the rational, calm side of average, am thinking like that, is there not now going to be a run on the banks in all the PIIGS? Further to that, will this not cause a slide in the value of the Euro, thus meaning that a transfer of funds into sterling or Kroner is even more rational, as the money will gain in value when measured in Euros? So at this point I probably would transfer my money to another currency if I was in any of those marginal countries. So will we see between 5 and 8 bank runs? Romper Sun, 17 Mar 2013 03:17:12 -0400 Zee Germans profit in 2 ways from the European Union: 1. They can export their goods without paying any customs fees and 2. They can borrow billions of Euros on % to struggling countries (which are struggling because their production went down because they import everything from Germany). Zee Germans changed in no way since Hitler but they managed to convince the whole Europe that they are the Angels. But the truth is that zee Germans were, are, and will always be wolves in sheep's clothing JC Sun, 17 Mar 2013 01:44:10 -0400 The first round of QE was not called QE1. Which is just hidden theft of savers as well. dwdude Sun, 17 Mar 2013 01:06:52 -0400 my father grew up in the depression...he never trusted banks. turns out it's the government that you can't trust. they run the country into bankruptcy and then write laws to steal your money to pay for their mismanagement. keep the fruits of your labor out of the governments view. Ken Sat, 16 Mar 2013 22:19:12 -0400 The same thing is coming to America sooner than anybody might imagine. Regulations of money market funds will soon allow them to freeze accounts and "break a buck" on deposits. Only in emergencies of course. Monetary emergency commences in 5...4...3..2... BJM Sat, 16 Mar 2013 22:15:17 -0400 Who is John Galt? Explorer Sat, 16 Mar 2013 21:49:45 -0400 So who owns the banks after this bailout is implemented? Have the shareholders been wiped out? Does the government now own the banks or do the creditors own it in proportion to their loss of principal (which may result in control passing to Russian oligarchs? What happens if the assets are insufficient to repay the reduced creditors? If depositors seek to withdraw will term deposits and bonds be allowed to terminate early, or will short term creditors be able to withdraw 100% while longer term creditors are still locked in? Are the existing senior management teams and boards of directors replaced but kept on as consultants to assist with an orderly realisation of assets? Given the allegations of money laundering, surely there must be doubts about the wisdom of leaving current management in place. The article leaves a lot of questions unanswered. Canned Heat Sat, 16 Mar 2013 18:43:15 -0400 FYI, the president of Cyprus heads the Cypriot Communist Party. Marcel Sat, 16 Mar 2013 17:23:05 -0400 This isn't a tax, this is a confiscation. Stealing from ordinary people to bail out rich bankers bonuses. Pure theft. chris hauser Sat, 16 Mar 2013 17:22:15 -0400 do you know whether there is deposit insurance in cyprus? it's unpalatable, but so is being wiped out....... chris hauser Sat, 16 Mar 2013 17:19:52 -0400 i'm bullish on america. chris hauser Sat, 16 Mar 2013 17:18:43 -0400 your arithmetic is selective, thus inaccurate. chris hauser Sat, 16 Mar 2013 17:17:01 -0400 i wonder how many depositors have already left....... crosspatch Sat, 16 Mar 2013 15:55:06 -0400 Ok, that fixes the problem for now. What are they going to do next year? This is the key part: "This arrangement notably meant his government "avoided salary and pension cuts" for public sector workers" Ok, fine, so you steal 10% of people's bank deposits so you don't have to reduce those salaries and benefits this year. But next year those salaries and benefits are going to be just as high. Are you going to steal from the people again to pay it next year? This is stupid beyond belief. Those wages and pension benefits are going to have to be cut anyway at some point because they are just not sustainable at current levels. They have kicked the can down the road by stealing the people's bank deposits and once that money is spent, they will be right back where they were. This does not fix the problem, it just avoids the pain of fixing the problem for a little while. This is why I believe that political "progressives" are the world's largest criminal class of con artists. "Progressives" have absolutely no business anywhere near the levers of government. They are thieves, they are cons, the are absolutely criminal. motionview1 Sat, 16 Mar 2013 14:15:45 -0400 Tomato, tomahto; instant tax, naked expropriation of savings. Edohiguma Sat, 16 Mar 2013 14:04:37 -0400 Cyprus is just another step. It started some time ago with Greece, Portugal, Spain... Next will eventually be France. Edohiguma Sat, 16 Mar 2013 14:03:50 -0400 They're only flushing our money down the drain. The Eurocrats in Brussels, the commissars who weren't elected by anyone, are working hard to put us all into the poor house. If some rats have to be flushed out it's the EUSSR apparatus in Brussels and their willing minions in the local national governments. Edohiguma Sat, 16 Mar 2013 14:01:16 -0400 Another 10 billion we don't have. Hope you choke on it Cyprus. I can't wait for the EUSSR to self-destruct. Numbers game Sat, 16 Mar 2013 12:44:55 -0400 Why, when getting 0% interest, would you keep any money beyond what is going to be needed for immediate use, in a bank account? If you want to keep cash, withdraw it and put it in a safety deposit box - it won't be safe there forever but you'll have a bit more warning before the Government comes to confiscate that too. At least in Cyprus they've made it easy to calculate, just drop a zero from your account... Zaphod Sat, 16 Mar 2013 12:37:25 -0400 Today Cyprus, tomorrow the world... Tostig Sat, 16 Mar 2013 12:29:00 -0400 It is totally reasonable to ask everyone to give up 10 % of their net worth from a lifetime of toil, to ensure that govt workers don't have to give up a penny of salary or benefits, so what's the story here? They should jack up the govt salaries from the imaginary 13 month year to an imaginary 14 month year, and if it means taking 15 % of bank deposits instead of 10, then so be it. d1stewart Sat, 16 Mar 2013 11:50:29 -0400 Yes, guaranteed to be a one-off. No one would ever think of doing this again, elsewhere. It is unthinkable! It will never happen. Next month, in fact, is when it will happen never again. itsme Sat, 16 Mar 2013 09:35:22 -0400 This is crazy... Slapping a tax retro-actively without the people having a chance to deal with it and make a choice is a very very VERY bad signal to all people and corporations that have a bank account. Total loss of trust. Not sure the end result will be what was expected... Just imagine what Italians and Spaniards and others will think they should do now to protect their money ? Playing a BIG poker bluff here... If people start to withdraw money "en masse", then 2008 will look like a joke, and banks in all Euro-zone will have to prepare to face lines of people wanting their money back from their accounts and stash the cash under the mattress because of the loss of confidence... We didn't needed that now, it's like shooting in the patient in the head while have him an open heart surgery... That's clever !!! Bravo !!! Martha Sat, 16 Mar 2013 08:57:02 -0400 Long overdue. Then they can crack down on the other countries. I wont say our countries are perfect but we are paying far more taxes than they are. It's all about Savings Sat, 16 Mar 2013 08:32:25 -0400 You're an idiot. The goal justifies the means, doesn't it? Never heard of basic rights your forefarthers fought and died for. If there was illegally money owned by crooks at the Cyprus banks, we have the international police and legal system for that. It's unprecendented and an utter blow to the democratic system to expropriate everybody - everybody - from their savings. It's a basic right. Laugh now at others suffering under that, tomorrow it will be you. I'll bet you are one the guys/girls that think it's oke if the government eavesdrops on your telephone calls because it makes you feel safe against terrorists. If you are too stupid to read, maybe Das Leben der Anderen would be a good film to watch where that road ends. allox Sat, 16 Mar 2013 08:04:08 -0400 This Cyprus experiment may be just a trial, it looks like we are in the story of a boiling frog, I mean at least most of people in EU... and this story won't have a happy end, unfortunately. I am also very impressed how precisely timing was picked up, the date for this action is over the extended weekend, Monday is state holiday in Cyprus. I believe that across the problematic counties (PIIGS + some more) there will be significant trust drop for bank deposits in the future. oak111 Sat, 16 Mar 2013 07:33:40 -0400 Unfortunately, any action will have some injustice associated with it. But everybody should participate to a solution, as if there is complete failure, everybody (less the biggest crooks) will be affected. And much more, and in a much more unjust way. But appropriate measures have to be taken against those that caused the problems. Corrections have to be made. In addition, those with lots of money should contribute more to much more. Where and how have they gotten all this money by the way? It's all about Savings Sat, 16 Mar 2013 07:20:51 -0400 This is thievery. State-ratified robbery. Like I posted earlier, the Dutch government have lost their way, with amateurs such as Mr. Dijsselbloem incurring more damage to the economy than their little minds can phantom. As a main example, the home cabinet in The Netherlands completely focusses on self-serving policies. They don't want to cut civil servants and will do anything - even changing human rights to get what they want. They did it before, when expropriate investors into a Dutch bank SNS (well, at least those investors took a contractual risk by investing in stocks), and the taste is for more. Mind the wording: "It's only just" Cyprus is only the beginning. The genie is out the bottle. They will tell you your money is safe in Europe, but in fact this proves that it is not. Oh, they're clever to put it under the name of "tax" all right. But everybody can see it's not a tax. It's expropriation. And that, dear BI readers, is outright communism. doodle Sat, 16 Mar 2013 07:19:10 -0400 now will someone blink ? will there be a run ? THERE IS NO PANIC--THERE IS NO PROBLEM- EVERYTHING HAS BE TAKEN CARE OF B/4 MONDAY'S OPEN- well, increase in taxes and cut-back in service here seems brilliant Richardo Sat, 16 Mar 2013 06:58:33 -0400 It's almost like the medieval times. They have to flush out the rats one state at a time. Too many voices in this never ending game of cat and mouse. Give them back their own currencies to rebuild. Experiment has failed. doodle Sat, 16 Mar 2013 06:53:03 -0400 well, looks like Europe may be facing our 2008- mer-leh- bear collapse- Europe sold off or mergered companies / issued bailouts first denied derivative exposure totally after 2008 but never had a crash-- they held off- reported later in pieces and continued after--moderation- with one eye on countries failing {think good cop-bad cop}