Cash machines emptied across Cyprus

[blackrabbit]

http://www.dailymail.co.uk/news/article-2294388/ATMs-emptied-Cyprus-savers-learn-10billion-bailout-agreement-includes-levy-bank-accounts.html

Why anyone would keep savings in a bank is beyond my comprehension.

[wheeler_dealer]

Could this be a precursor for the future? This action by the government (politicians) was not a knee jerk reaction. Rather it was probably a behind the scene deal worked out in advanced. I can imagine that the orchestrators of this action were shielded from the levy having advance knowledge.
Can't imagine something of this level occurring here as we ( U.S.) have the printing press. Our government would probably use inflation (devaluation ) to achieve same results.
Store your extra cash in tangible assets (anyone on the island who had done this would have been rewarded).

[justoneguy]

It seems 40% of these deposits are not island residents.
their banks were used for privacy and low tax rates

[ZenOps]

Tax havens are staring to get hit. Cayman islands next?

[blackrabbit]

I heard it was mostly Russians who had their money in Cyprus and that Russia has outlawed western banks from doing opening in Russia recently. So this in my mind seems to be economic warfare, the western banking establishment vs. the Russian oligarchs. The little guys get squashed and robbed in this game.

[Z00]

This has the very real potential to spread across the EU. I would not take any bets on a bank holiday being called in Cyprus next week, and possibly other places.

Also, consider this:
They are grabbing 10% of rich Russian money stored there. Russia supplies the lion's share of wheat to Cyprus. Any bets on the future price of wheat to Cyprus?

Ancient Chinese curse:
May you live in interesting times.



Stand by.......

[Rodebaugh]

This is HUGE!

Perfect example of "If you don't hold it you don't own it"

[PennyPauper]

Just read this one.
http://www.reuters.com/article/2013/03/ ... 3I20130317
Don't worry it will NEVER happen here! Nothing here,move along and go charge up some more debt and stimulate the bankers,i mean eCONomy.

[Thogey]

Why would the article(Original at the top post) claim that bank runs are unlikely? They are likely, because to avoid this you would have to withdraw your funds before an announcement like this one.

Apparently the people withdrawing from ATMs are already screwed out of 6.5%, that is a massive tax/confiscation.

I would seriously loose my cool if that happend here. I may as well just lock myself up because I'd be headed for jail anyway.

Now, what Russian billionaire is going to stand for this? You might see some bankers missing fingers and heads soon.

[DTEJD1997]

There are going to be MASSIVE implications for this action...

Cyprus has been known for YEARS to be the money laundering haven for "dirty" money coming out of mother Russia.

So this might be ham fisted swipe at that...

If it goes through...this is going to put a damper on people keeping significant amounts of capital in the banking system...

I imagine there will also be some unintended consequences that we can't even imagine a this point...

We'll see.

[blackrabbit]

It will interesting to see what happens in the metals markets when they open today.

[ZenOps]

Bank runs are unlikely because most people signed onto savings accounts that have daily limits on withdrawls (subject to discretion of the bank)

So, if the bank starts running low on cash - they simply lower the daily withdrawl maximums from $500 euros to $50 euros, problem solved. Its the exact same idea as giving the gold back to Germany over seven years.

Same with Canada, if you start running low on pennies - simply take them completely out of circulation.

As for US banks: http://www.uwsa.com/blog/banks/is-citib ... the-banks/

Somewhere around 2010 Citibank changed the rules on withdrawls to a one week delay. Meaning that at their discretion at any time for any withdrawl amount, they can make you wait one week to get your money (bills or otherwise)


Save those nickels.

[TwoPenniesEarned]

It seems 40% of these deposits are not island residents.
their banks were used for privacy and low tax rates

So what?

It has already been taxed. These are people's savings.

[TwoPenniesEarned]

I heard it was mostly Russians who had their money in Cyprus and that Russia has outlawed western banks from doing opening in Russia recently. So this in my mind seems to be economic warfare, the western banking establishment vs. the Russian oligarchs. The little guys get squashed and robbed in this game.

Whether or not it is mafia money being stolen, it is the mafia stealing it that should be getting attention.

Remember how we were told that all Greeks were lazy and Bla Bla Bla?

What will the guys stealing our money call us when it is our turn?

[smalltimeopn]

This story actually made the evening news with Brian Williams. I watched just to see if they would give it any air time. I figured they would not even report it.......