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

[dealmaker]

Quote from comintel:

People are over-interpreting this.

The EU merely asked that the money be raised by Cyprus. They had originally expected that Cypress would do it via a fiscal tax on only wealthy depositors, as part of its anti-money-laundering goal.

Cyprus did it this way on its own initiative, it seems, since it will leave the Russian Oligarchs much better off than a 40% hit that had been expected if it were levied on only the Russian Oligarchs.

Effectively, Cyprus chose to have its entire population bail out the oligarchs. I imagine that they think they can blame it on the EU.

See
http://www.telegraph.co.uk/finance/...priot-government-has-betrayed-its-people.html

It will have no effect on the Euro (except maybe positive).

By the way, a large number of small Forex dealers are located in Cyprus. Some members here have accounts with these dealers. It will be interesting to see if they get hit the 10%.

Like any other small country eg Lichtenstein, Monaco, Caymans etc., Cyprus has two main industries tourism and off shore banking if they were to apply haircut to Russian oligarchs i.e. foreign depositors, off shore banking industry will be gone from Cyprus forever, this is one time pain for the future of the country.

 

[zdreg]

Quote from dealmaker:

Like any other small country eg Lichtenstein, Monaco, Caymans etc., Cyprus has two main industries tourism and off shore banking if they were to apply haircut to Russian oligarchs i.e. foreign depositors, off shore banking industry will be gone from Cyprus forever, this is one time pain for the future of the country...

maybe. but just maybe, it is the domino that topples the euro and then maybe more pain.

 

[goodgoing]

EU paranoia. The end is near.

 

[Visaria]

http://www.bbc.co.uk/news/uk-21820237

Good to see my taxes being put to good use

 

[Wide Tailz]

Quote from Mtrader:

Just some thoughts:

People will not trust banks anymore.

What just happened in Cyprus can be very dangerous for the banking system all over the world.

+

First thing I thought - screw savers to "protect" the banks and "bail them out"...... oh wait

:eek:

 

[dandxg]

Quote from zdreg:

maybe. but just maybe, it is the domino that topples the euro and then maybe more pain.

I don't believe Germany(Merkel) is that stupid to force a deal that would topple their own economy?

I have heard rumors a year ago about a two tier Euro, one for the winners, and tier 2 for the PIGS

 

[WoodyK]

Quote from Scataphagos:

Leftists in America will eventually get around to the same thing here... and that will just be for starters. Odumbo will see to it.

You have that right. What are you doing about it? I'm taking precautions to protect my wealth...

Woody

 

[DT-waw]

what a fantastic opportunity for Swiss National bank to buy some more euros!

I'm 100% certain that now we'll see 150 pips UP move to 1.3100.
Rally time!
EU is saved. SNB has the unlimited printing press and will expand its EUR holdings to whatever amount they want

If you're a banker, the finances are easy for you.
Cut peoples deposits by any amount? One decision, done.
Print 2300 Billion euros? One key stroke and central bank is richer by 2300 billion.

to generate or rob wealth in modern era.... is THAT easy.
The sheeple have to work hard 12 hrs/day. The bankers just need to say a word and billions are transferred where the desire.

 

[DT-waw]

1.2960 and rising ....i told ya!

euro is the greatest and strongest currency together with swiss franc.
why? well, who has more buying power: central bankers or speculators?
i'm not aware of any speculator who can do trades for unlimited sizes !

 

[oldtime]

Quote from comintel:

People are over-interpreting this.

The EU merely asked that the money be raised by Cyprus. They had originally expected that Cypress would do it via a fiscal tax on only wealthy depositors, as part of its anti-money-laundering goal.

Cyprus did it this way on its own initiative, it seems, since it will leave the Russian Oligarchs much better off than a 40% hit that had been expected if it were levied on only the Russian Oligarchs.

Effectively, Cyprus chose to have its entire population bail out the oligarchs. I imagine that they think they can blame it on the EU.

See
http://www.telegraph.co.uk/finance/...priot-government-has-betrayed-its-people.html

It will have no effect on the Euro (except maybe positive).

By the way, a large number of small Forex dealers are located in Cyprus. Some members here have accounts with these dealers. It will be interesting to see if they get hit the 10%.

the tragedy is they have broken the trust between the fdic and the depositer, in this case the limit was 100k, what happens to you if you have more than the limit is anybody's guess if your bank fails, that's how it has always been.

But this is a broken promise between the insurer and the policy holder.