Cyprus deal 40% haircut

[Lucrum]

Quote from athlonmank8:

This is going to make every weak European bank insolvent. Who's going to hold excessive deposits knowing there's not going to be any protection on these accounts. This is just plain stupid.

If I was over there I certainly would have withdrawn my savings already.

 

[Xspurt]

Quote from athlonmank8:

This is going to make every weak European bank insolvent. Who's going to hold excessive deposits knowing there's not going to be any protection on these accounts. This is just plain stupid.

Perhaps it's too stupid because its very clever, depending on who wants a predictable outcome on what comes next. It's like a Livermore market test.

 

[Michael888]

Quote from Lucrum:

If I was over there I certainly would have withdrawn my savings already.

Didnt they block access so no-one could withdraw their funds?

 

[justrading]

Quote from Michael888:

Didnt they block access so no-one could withdraw their funds?

Banks have been closed for something like 10 days. Initially no withdrawals then they allowed ATM withdrawals max 260 Euro. Don't know if that was per day or 1 time, saw it on BBC news and the sign was in Greek.

 

[Lucrum]

Quote from Michael888:

Didnt they block access so no-one could withdraw their funds?

Oh I wouldn't be surprised, but I meant if I was pretty much anywhere in the EU.

 

[comintel]

Quote from justrading:

Banks have been closed for something like 10 days. Initially no withdrawals then they allowed ATM withdrawals max 260 Euro. Don't know if that was per day or 1 time, saw it on BBC news and the sign was in Greek.

It is per day and it is now lowered to 100 euro per day at the two large troubled banks.

http://www.reuters.com/article/2013/03/24/eurozone-cyprus-withdrawals-idUSL5N0CG0VA20130324

With the new bailout, I imagine it will be increased back up at all banks.

I was under the impression that ATM withdrawals have never been closed off completely.

 

[achilles28]

Quote from hftvol:

I do not think you will succeed in enlightening someone who on one side claims he believes in free markets and then declares banks the root of all evil basically suggesting there was no such evil before central banks stepped in. I do not even believe he can reconcile his own thoughts because they are just contradictory.

Banks have always just been part of the problem, someone claiming the financier is the issue in the free enterprise system demonstrates a very limited understanding and vision of the system surrounding him.

No no. What we need to do is confiscate more bank accounts, impoverish more people, and print even more trillions, to bailout the very banks that created this crisis. And you're going to lecture us about free markets? You haven't a clue. Nor does your buddy.

As for the rest of it, it's pure trash. You're putting words in my mouth. I could run circles around you all day, son.

 

[mastacoli71]

Quote from Xspurt:

Perhaps it's too stupid because its very clever, depending on who wants a predictable outcome on what comes next. It's like a Livermore market test.

europe is taking a yo on this bet. good luck to them.

 

[comintel]

Uninsured deposits are uninsured.

It is the same in the U.S.

Numerous small banks in the U.S. fail each year, and often the deposits over the FDIC limit are lost.

That is the exactly the same in Greece under the terms of the final bailout.

Deposits under E100,000 and all deposits at healthy banks will be honored.

It is true that it is their largest two largest banks that are failing though.......

 

[justrading]

Quote from comintel:

I was under the impression that ATM withdrawals have never been closed off completely.

Perhaps not. The early BBC reports had people lamenting the fact that many businesses would only do cash transactions and that they were running low on cash.

Possibly just the troubled banks then, or some other factor.