Posted on 03/17/2013 7:40:36 AM PDT by SatinDoll
Yes, it is every bit as bad as it sounds, and worse. Word is that the initial plan was for a 40% (!!!!) levy confiscation of Cypriot bank accounts. They settled for a MERE 6.75% and 9.9% dual-layered compromise. Yeah, you all need to do what I have been doing for the last several months and live within spitting distance of being overdrawn in your bank accounts. In other words, keep the BARE MINIMUM in the bank and feed your account just enough to cover the bills. As soon as money comes in, get it the heck out of there.
Looks like the IRS may prove to be the least of my worries with regards to levying bank accounts!
This has the potential to spark bank runs in other Southern European nations MERELY BECAUSE OF THE FACT THAT IT ACTUALLY HAS HAPPENED. Pray the Greeks, Italians, Spaniards and Portuguese are all watching talent shows or soccer and don't notice. But if it does, if you have watched my eight-part economic presentation on YouTube, then you understand that we will blow sky-high as the big banks and their tens of trillions of dollars in repos and reverse repos and credit default swaps, many-to-most of which are written on European sovereign debt, blow.
In case you have been either under a rock or passed out drunk since yesterday:
http://www.zerohedge.com/news/2013-03-16/europe-does-it-again-cyprus-depositor-haircut-bailout-turns-saver-panic-bank-runs-br
UPDATE: I agree with various commentators that this is almost certainly a test-run by Brussels to see what the reaction of the Cypriots is. If no one is hanging from light poles by sunset on Tuesday, they will likely move on to Greece and the other Southern European economies, satisfied that the people have been sufficiently conditioned to roll over. Tiny Cyprus, an ISLAND mind you, makes the perfect test lab.
I anticipate that the light poles will remain undecorated. There is no fight left in the men of former Western Civilization; only indifference punctuated by self-loathing. Say goodnight, Gracie.
This is naked Globalism.
Running out of other people’s money leads to stealing other people’s money. I hope Lady Thatcher is watching this unfold.
The only difference between it happening there and here, today, is the second amendment. That perhaps is what is underpinning the move to get guns out of the hands of the populace as quick as possible and the arming up of the domestic security agencies.
The Rev 2 clock is winding down to midnight rapidly now.
Soros is laughing. He’s made his billions by scaring people.
Trust me its going to happen here. Our big 4 banks have been basically insolvent for over 5 years. The only think keeping them afloat is the injections of cash from the Federal REserve.
When our banking holiday occurs its more than likely going to be a 66% haircut. If you had $100,000 on Friday you will have about $30,000 when the bank re-opens. It will take 3 old dollars to buy 1 new dollar.
"If you commit less cash to payments, you can use it toward your 401(k) and other investmentsGiven the rumors of this administrations efforts to confiscate 401(k) funds (a previous Barnhardt thread discussed on FR) it appears yet a clever temptation which ultimately puts more of your hard earned funds within this administrations greedy reach.
The Second Amendment means absolutely nothing unless free men and women are willing to kill the people who deserve killing. So far, I have seen no evidence of that. All I've seen is a bunch people buying stuff. That, by itself, will achieve nothing.
Exactly. One should do just the opposite - pay off the mortgage ASAP!
If you can’t physically touch your hard assets, such as a house or a fully-paid for vehicle, then you cannot be sure the government won’t seize it from your broker or banking institution.
The absolutely worst investment is having someone else hold gold for you. Most likely, it doesn’t exist!
All I’ve seen is a bunch people buying stuff. That, by itself, will achieve nothing.
Actually the threat is enough to keep them at bay for the time being.
About the sequence of events preceding it where the Eurasian zones become desperate and engage in confiscatory acts such as this.These acts would cause cash to flee to safer markets, temporarily bolstering those markets remaining that seem the safest, for the time being, till they catch fire and make grabs for the remaining cash flow.
Then the real fun begins, anyone remember the post?
For the vast majority, ridding oneself of debt reduces overhead and enables healthy savings of funds that actually are an increase rather than an illusion of it, with less dependency should problems arise, in your own sphere of influence or outside of it.
Work to own your shelter free and clear, your means of transportation also. You’ll weather any economic storm much more successfully without the threat of repossession or foreclosure hanging over your head. There seems to be a number of economic storms still looming. We’re a long way from being out of the woods.
The first thing to do if you haven’t already done it is to build up an emergency fund, equal to at least a few months of living expenses if not six or more months. Unemployment sometimes doesn’t kick in so quickly, and if you’re a sole proprietor or s-corp owner it may not kick in at all (happened to me). unemployment isn’t enough to support yourself either, typically half or even less of your previous income.
Whether it’s wise or not to keep cash on hand literally is a decision you need to make for yourself. The risk of a bank holiday or some sort of systemic failure preventing you from accessing your funds or even losing them, is counterbalanced by possibility of robbery or loss in a fire or natural disaster while in your physical possession.
I tend to keep cash in my possession sufficient to cover a month or two when the panic level starts ratcheting up, whether that’s domestic or international, but withdrawing everything seems to heighten the risk so I haven’t done that and don’t envision doing it.
Just my two cents. Do what makes sense to you and makes you comfortable, or as comfortable as possible given the circumstance.
Hardship and discomfort will bring the resolve. And, it may not take as much as you might think, as Americans have a generally “easy” life.People are aware of what may happen, but most folks are not alarmists. Most folks lifestyles haven’t been affected to the extreme, yet. Also, there have to be leaders to energize folks. I believe we have those leaders, but they haven’t presented themselves yet. It isn’t quite “time” yet.
I’ve read similiar predictions on numerous occaisions, not the least of which was on Free Republic.
Ubama’s 47% spend every cent they get their hands on the minute they get their hands on it. They have no savings, so this will not affect them, so they won’t care.
they confiscated 16.7% of all the money held in bank accounts in Cyprus?
after confiscation of readily available monetary instruments comes confiscation of wealth... ie: real estate / gold / any valuables
any objections will end up with a train ticket and shower cap.
welcome to 1937
Ubama’s47% won’t be on the right side of any revolution anyway. And, they will participate with a vengeance when thier “entitlements” are cut. I’m in no hurry to see our next civil war/revolution, but it IS going to come.And it will be a much bigger mess than any of the United State’s domestic wars have been.
I believe that one of the guys who made the prediction is a leading figure in the market, one of the fellows who predicted the housing bubble collapse. I can`t remember his name but I swear I saw him speak on Glenn Beck`s show when it was still on Fox.
This is such an important story that everyone on earth, or at least in modern economies, should know about this.
Here's a warning from Jim Rogers posted on FR on 3/11/13 Jim Rogers: Major Crash Ahead For U.S. Investors
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