Wow. EU steals 10% of bank deposits in exchange for bailout

Quote from Humpy:

The Northern EU countries may have to dump the Southern basket case countries to save themselves.
Usual cock up by the incompetent politicians.
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It is not just the South it is the East too.
 
Quote from Bob111:

yeah...but you have think a little bit wider about it.. see wise man quote below. how would you feel,if your trading or saving or whatever account get's 10% cut overnight? specially savings,that was already been taxed to death(in case of US or EU lawful citizens).



100%. that some scary s** cyprys is pulling off. and eventually-it will back fire to them big time. no one in his right mind would ever use their banks.what a bunch of dumbasses. it's like cutting it's own balls.
imagine same s*** on bahamas or caymans

http://online.wsj.com/article/SB10001424127887324077704578362180039767150.html
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consider it as if cyprus had their own currency. it is a 10% devaluation
 
Quote from zdreg:

consider it as if cyprus had their own currency. it is a 10% devaluation
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Yeah it is no different to QE. It is no different to what they have been doing to us the last few years it just has a different name and is easier to notice.
 
There are rumours that Spain and Italy will be forced to do the same as Cyprus.

The problems for Cyprus started in 2008 with the bank crisis. They tried to avoid the strict rules from Europe by lending money in Russia. Because they are not able to pay back the Russian loan they are now back in the situation from 2008.
And now they are forced by Europe to take drastic action.

This will cause problems all over Europe, because banks are no safe place anymore for savings accounts.
 
Quote from Mtrader:

There are rumours that Spain and Italy will be forced to do the same as Cyprus.

The problems for Cyprus started in 2008 with the bank crisis. They tried to avoid the strict rules from Europe by lending money in Russia. Because they are not able to pay back the Russian loan they are now back in the situation from 2008.
And now they are forced by Europe to take drastic action.

This will cause problems all over Europe, because banks are no safe place anymore for savings accounts.
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I wonder if this will have an impact on precious metals prices.
 
The title of this thread is not really accurate.

Correct one would be "EU refuses to fully bail out depositors in Cyprus banks"

Without the EU money, the banks would have folded, and with the banks being so large relative to the country itself, Cyprus would have been unable to fulfill its deposit insurance guarantee. Depositors would have lost 30 percent, likely more.
 
Quote from morganist:

Yeah it is no different to QE. It is no different to what they have been doing to us the last few years it just has a different name and is easier to notice.
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EURUSD has dropped since the Fed began QE.
 
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