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Raid on Cypriot deposits shakes Europeans' faith in savings (9.9% theft by govt)
Reuters ^ | Sun Mar 17, 2013 5:01pm EDT | By Harry Papachristou and Sonya Dowsett

Posted on 03/17/2013 3:32:46 PM PDT by Red in Blue PA

(Reuters) - Europeans' faith in the safety of their savings has been shaken by a levy on Cypriot bank deposits to pay for a bailout, even though there was no sign of a rush to withdraw cash in Madrid or Dublin.

People told Reuters they were angered but unsurprised that politicians should dip into citizens' deposits. And as bankers expressed concern the proposed terms of Cyprus's bailout could unnerve savers elsewhere, some leftist leaders voiced outrage.

Euro zone finance ministers want Cypriots to pay up to 9.9 percent of their deposits in return for a 10 billion euro ($13 billion) aid package. If approved by the island's parliament on Monday, it will be the first time savers have had to foot part of the bill for a European bailout.

(Excerpt) Read more at reuters.com ...


TOPICS: Germany; Israel; News/Current Events; Russia; United Kingdom
KEYWORDS: banks; cyprus; economy; eu; europeanunion; germany; greece; israel; russia; turkey; unitedkingdom
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If this happens here, prepare for CW2.
1 posted on 03/17/2013 3:32:46 PM PDT by Red in Blue PA
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To: Red in Blue PA

back to the mattresses.

If they get away with it they will do it again, you can bet countries around the world are watching and learning


2 posted on 03/17/2013 3:33:50 PM PDT by GeronL (http://asspos.blogspot.com)
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To: Red in Blue PA

Everybody sell! I’ve been waiting for he discount.


3 posted on 03/17/2013 3:35:56 PM PDT by WriteOn (Truth)
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To: WriteOn

"Turn those machines back on!"

4 posted on 03/17/2013 3:36:49 PM PDT by dfwgator
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To: Red in Blue PA

Scares me too, I’d switch to gold but I suspect its a bubble waiting to pop.


5 posted on 03/17/2013 3:37:26 PM PDT by Nateman (If liberals are not screaming you are doing it wrong!)
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To: Red in Blue PA

Europeans are converting euros into dollars and buying gold. America has always been viewed as a secure haven during crisis. The result is a big transfer of capital into the US economy which bolsters the dollar and the economy despite Obama’s bad policies. Gold also rises due to increased demand and long term uncertainty about the American economy.


6 posted on 03/17/2013 3:38:05 PM PDT by allendale
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To: Red in Blue PA

wow... this is honestly the scariest thing that’s happened since the beginning of the great recession!

Government has basically invented a new way to cause a run on banks!

This one action has the potential to collapse the entire world economy as paniced people rush to withdraw their money from the bank.


7 posted on 03/17/2013 3:38:25 PM PDT by TexasFreeper2009 (Obama lied .. the economy died.)
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To: Red in Blue PA
Gold is now trading...


8 posted on 03/17/2013 3:39:57 PM PDT by Vince Ferrer
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To: dfwgator

Haha!


9 posted on 03/17/2013 3:40:37 PM PDT by WriteOn (Truth)
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To: Red in Blue PA
This is where our welfare state is headed.

The Beast must feed.

10 posted on 03/17/2013 3:42:27 PM PDT by skeeter
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To: TexasFreeper2009

I may now go and buy that gun I cannot afford right now. After all, money in the bank might be worthless with this administration.

Guns and reloading equipment will be priceless. As though we needed yet another reason to run out and buy guns!


11 posted on 03/17/2013 3:43:02 PM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Red in Blue PA

I’m thinking the same thing. To hell with the future, there may not be one. Pull my savings out and buy prepper stuff now.


12 posted on 03/17/2013 3:45:01 PM PDT by BipolarBob (Happy Hunger Games! May the odds be ever in your favor.)
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To: Red in Blue PA

he Mexicans were a little more circumspect. Back in the ‘70s, I think, they seized all their citizens’ dollar bank accounts and converted them to pesos, then devalued the peso by something like 45%, then said the depositors could convert the remains back into dollars. Not many, if any, did.


13 posted on 03/17/2013 3:45:23 PM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: Vince Ferrer

http://www.zerohedge.com/news/2013-03-16/everyone-shocked-what-just-happened-and-why-just-beginning

Jim Sinclair told King World News we have just witnessed one of the most important events in history and it will have a major impact on the gold market. Sinclair, who’s father was business partners with legendary trader Jesse Livermore, had this to say in this extraordinary and exclusive KWN interview:

“The wire reports on the Cyprus situation are working overtime to try to make the case that 80% of the deposits belong to the people of Cyprus, and only 20% of the deposits belong to the Russians. That’s absolutely false. After 1985, when the ‘Robber Barrons’ of Russia took over the general economics of Russia, that was the transformation from the KGB to private business. The primary place for exported Russian funds was Cyprus.

Now, there is one leader in the world that would be very dangerous to challenge, and that is Putin of Russia....

“What’s just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian ‘black money.’ Russian ‘black money’ is KGB money, now in business. The leader of Russia (Putin) was a former KGB official. Who’s money do you think they have taken? This is the biggest mistake the IMF could possibly have ever made.”

Eric King: “Jim, it’s unimaginable to me, but, incredibly, just ten days ago you warned that you don’t want to anger Russian leader Putin because he and Russia will punish the West in the gold market. Can you talk about how this is going to impact the gold market beginning on Monday?”

Sinclair: “What would you rather have, an insured bank account by the BIS, FDIC, ECB, when any government can come in and take 10% of your account and treat that as if you are paying a tax for monies that were lost because of devious actions by the banks themselves, or gold?”

Eric King: “Will the Russians take their revenge in the gold market? Is that one of the places they will seek revenge?”

Sinclair: “The answer is that this is one of the most important events in modern times for the popularity of holding gold rather than holding fiat money. This is the catalyst that will propel gold through the $1,600 level. To prevent a break above $1,600 in gold would take extraordinary efforts on the part of any manipulator in the marketplace.

It’s very dangerous in doing business with the Russians to lose their money. Revenge will be very much a part of the motivation for what happens from this point forward. This type of event will take us out of the $1,500s and we may never see those prices again in our lifetimes.”


14 posted on 03/17/2013 3:46:31 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: BipolarBob

The truly sad part is that the ones who saved and invested their money did not cause the mess in the first place.


15 posted on 03/17/2013 3:46:35 PM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Red in Blue PA

Unfortunately, it’s highly likely that the Cypriots are giving Obama ideas.


16 posted on 03/17/2013 3:47:20 PM PDT by Jack Hammer
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To: Jack Hammer

The dominoes are being controlled from outside they will dictate to thier puppets when the time is right


17 posted on 03/17/2013 3:50:16 PM PDT by ronnie raygun
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To: skeeter

FEED ME!
18 posted on 03/17/2013 3:51:02 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: Nateman
Scares me too, I’d switch to gold but I suspect its a bubble waiting to pop.

Gold is the opposite of a bubble. f you are looking to profit from gold, you will be just a speculator who might win or lose. There is occasional speculation where gold gets a little ahead of the trend, but the trend is still intact (we are about at the trend right now). When the Fed creates the other bubbles, gold responds by playing the role of money. If you are looking for a way to put money in a mattress for the next decade then convert it back to goods, then you have come to the right place.

19 posted on 03/17/2013 3:51:32 PM PDT by palmer (Obama = Carter + affirmative action)
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To: Red in Blue PA

20 posted on 03/17/2013 3:51:47 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: Red in Blue PA

Wont be long before Europe realizes the importance of the 2nd Amendment. And if Dems keep talking about “managing” our 401Ks they too will find out the exact definition of the 2nd Amendment.


21 posted on 03/17/2013 3:52:28 PM PDT by avacado
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To: Red in Blue PA

As I understand it, the tax is Germany’s condition for bailing out the Cypriot banks. If Germany doesn’t bail out the banks, what happens to depositor’s money?


22 posted on 03/17/2013 3:54:28 PM PDT by GrootheWanderer
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To: Red in Blue PA
Sadly, if this happens here 75% of people will meekly go along with it. Some republican pols will bluster, but do nothing. Only the people who don't have their cash tied into the theoretical electronic-credit system will be safe.

Them, and the EBT card people.

23 posted on 03/17/2013 3:55:49 PM PDT by Wyrd bi ful ard (Gone Galt, 11/07/12)
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To: Jack Hydrazine
You'll never grow old and never die.

... but you must feed.

24 posted on 03/17/2013 3:58:45 PM PDT by skeeter
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To: GrootheWanderer

I wonder if the politicians there are subject to this same tax on their accounts? My guess would be no.


25 posted on 03/17/2013 4:00:24 PM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: GrootheWanderer

If Germany didn’t bail out Cyprus’ banks, it would have likely led to a systemic banking failure. And then the Cypriots would’ve had bupkis.

There were two big banks on the verge of insolvency, and the Central Bank of Cyprus couldn’t have bailed them out. If those two went, well.........that’s that. Game over for Cyprus, at least the Southern part of it.


26 posted on 03/17/2013 4:00:29 PM PDT by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
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To: Red in Blue PA

CW2 will not solve the problem, but if it does happen, let them carry the responsibility with their very lives.

Once our money is wasted by our politicians, there won’t be anything left to bury our remains.

Send them the bill for the funeral expenses. LOL.


27 posted on 03/17/2013 4:00:47 PM PDT by 353FMG ( I refuse to specify whether I am serious or sarcastic -- I respect FReepers too much.)
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To: AnAmericanAbroad

The ones who save their money are not the ones who cause the debt crisis and welfare state! What don’t you understand?


28 posted on 03/17/2013 4:03:32 PM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: avacado

Europe doesn’t have one, and our ‘POLITICIANS’ want to take it away from us.


29 posted on 03/17/2013 4:08:44 PM PDT by 353FMG ( I refuse to specify whether I am serious or sarcastic -- I respect FReepers too much.)
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To: Nateman
FRiend, Gold would have to rise by at least 500% before it enters the lower bound of being fairly priced, never mind being in bubble territory.

For Silver: triple that number to 1500%.

Right now the prices of Precious Metals (PMs) are heavily suppressed. They are direct currency crosses. Their prices cannot be allowed to rise naturally or the Fed's three bubbles - bonds, stocks and the current purchasing power of the dollar - will collapse.

Nevertheless PMs are inexorably going to rise in price. Economic reality cannot be stopped, only delayed. The Fed is pushing against a steamroller and is going to get crushed.

Hope this is helpful.

30 posted on 03/17/2013 4:09:32 PM PDT by agere_contra (I once saw a movie where only the police and military had guns. It was called 'Schindler's List'.)
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To: Red in Blue PA
Raid on Cypriot deposits shakes Europeans' faith in savings

Gee, ya think?

31 posted on 03/17/2013 4:10:11 PM PDT by dfwgator
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To: Red in Blue PA

The Cypriots don’t have a lot of alternatives open to them at this stage in the game.

They could always allow themselves to go bankrupt...it’s an option, if a painful one. They could go back to the Cypriot Pound, with an immediate devaluation of 40 to 50%. It would make vacationing there a lot cheaper, that’s for sure.

They could sell off the southern part of the island to the Russians. They’d be happy to buy it, I’m sure.

Maybe they could just let Turkey take over the rest of the island. Turkey’s in good shape, economically speaking.

Cyprus is bust. I know it’s not the fault of the ordinary man-in-the street for their situation. I don’t envy their situation, to put it mildly. They’re damned if they do, and damned if they don’t. It’s an economic Kobayashi Maru, to use a Star Trek analogy. The no-win scenario.


32 posted on 03/17/2013 4:12:30 PM PDT by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
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To: GeronL
didn't that crook from Jersey...the ex governor in charge of an investment firm...I think MLGlobal....didn't he just abscond with all the investors money to pay someone else off?....and didn't the govt let him do it?....

this govt does not stand up for anyone but its cronies...

33 posted on 03/17/2013 4:14:58 PM PDT by cherry
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To: Nateman

Canned goods. Shotgun shells and canned goods.


34 posted on 03/17/2013 4:15:16 PM PDT by Eleutheria5 (End the occupation. Annex today.)
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To: Nateman

I’m thinking about land. If all falls apart, and you have the means to protect your property, at least you can grow your own food.


35 posted on 03/17/2013 4:17:36 PM PDT by pieceofthepuzzle
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To: Nateman

I’m thinking about land. If all falls apart, and you have the means to protect your property, at least you can grow your own food.


36 posted on 03/17/2013 4:17:36 PM PDT by pieceofthepuzzle
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To: Vince Ferrer

S&P Futures are also trading and are down 16.4. This may be the catalyst for the market correction.


37 posted on 03/17/2013 4:19:24 PM PDT by freedom1st
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To: Red in Blue PA

“...If this happens here, prepare for CW2....”

The sock puppet is planning on it. Rest assured. That’s why he needs that standing domestic army that just purchased all those hollow point bullets.
It’s not “IF”, it’s WHEN!!! Anyone with half a brain can see it coming.
I don’t have much, but I’ll be at the door when the bank opens first thing in the morning and pulling it out. Screw FDIC, the Fed, Obama and the rest of their sorry asses. I worked too hard for it and it’s not drawing hardly interest in there anyway. I’ll take my chances with it in my own hands.


38 posted on 03/17/2013 4:19:30 PM PDT by lgjhn23 (It's easy to be liberal when you're dumber than a box of rocks.)
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To: Red in Blue PA

So, the government taxed 60-70% of their incomes (including a lot of non-revenue producing bureaucratic jobs) so they net 30-40% then they take 10% of that....?

Socialism is a AAA team out outright Marxism.


39 posted on 03/17/2013 4:25:07 PM PDT by wac3rd (Somewhere in Hell, Ted Kennedy snickers....)
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To: pieceofthepuzzle

I was thinking about land. After reading this story, I am thinking of an island.


40 posted on 03/17/2013 4:25:25 PM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: allendale

You’re right. The U.S. economy isn’t a “good economy” — it’s simply less bad than the others. For now, that’s good enough. For now.


41 posted on 03/17/2013 4:26:55 PM PDT by USFRIENDINVICTORIA
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To: Eleutheria5
Canned goods. Shotgun shells and canned goods.

Also freeze dried food, ammo, guns, reloading equipment, and anything you can barter: motor oil, salt, honey, sugar.
42 posted on 03/17/2013 4:27:43 PM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Red in Blue PA

Forgot SPAM!


43 posted on 03/17/2013 4:28:17 PM PDT by Red in Blue PA (When Injustice becomes Law, Resistance Becomes Duty.-Thomas Jefferson)
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To: Red in Blue PA
I am thinking of an island.

You'll need a good manager won't you?

Allow me to give you my card....

44 posted on 03/17/2013 4:28:44 PM PDT by Fightin Whitey
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To: cherry

whatever happened to that story??


45 posted on 03/17/2013 4:29:21 PM PDT by GeronL (http://asspos.blogspot.com)
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To: pieceofthepuzzle
I’m thinking about land. If all falls apart, and you have the means to protect your property, at least you can grow your own food.

You missed that boat.

46 posted on 03/17/2013 4:29:41 PM PDT by EVO X
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To: Red in Blue PA

Law books. They make great kindling.


47 posted on 03/17/2013 4:33:55 PM PDT by Eleutheria5 (End the occupation. Annex today.)
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To: Red in Blue PA

Ah, the marxists among us are salivating! This is their dream! How they would love to take the money that normal people have accumulated through hard honest work without any special privileges.
How they would love to keep it or give it to the lazy slobs who vote democrat!


48 posted on 03/17/2013 4:34:35 PM PDT by I want the USA back
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To: Red in Blue PA

Cyprus will be vacant pretty soon.


49 posted on 03/17/2013 4:35:08 PM PDT by Eleutheria5 (End the occupation. Annex today.)
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To: I want the USA back

Taking gold teeth out of gas chamber victims’ corpses’ mouths was a form of redistribution. Pass-book savings account is minor larceny by comparison.


50 posted on 03/17/2013 4:37:39 PM PDT by Eleutheria5 (End the occupation. Annex today.)
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