Skip to comments.Cyprus bailout - (Parliament doesn't have votes to pass reform)
Posted on 03/18/2013 1:24:17 PM PDT by 11th_VA
19.28 Greek-based Antenna TV is now reporting that Mr Anastasiades will tell the Eurogroup that he doesn't have enough backing in parliament to pass the bill.
(Excerpt) Read more at telegraph.co.uk ...
Good. Tell the Germans to go pound sand. No doubt Obama has already asked his Treasury Secretary to draw up an analysis of how much tax money they could raise by raiding our 401(k)’s.
Even if it doesn’t go through, WE KNOW THE INTENTIONS OF THE BANKERS AND GOVERNMENT ELITES. The original intention was a 40% haircut.
If the Cypriot banks actually do collapse we will see the violence start, escalate and spread. Either that or the Russian Mob moves in (fully) to make everyone whole (and indebted to THEM).
At least they’re good for something.
“No doubt Obama has already asked his Treasury Secretary to draw up an analysis of how much tax money they could raise by raiding our 401(k)s.”
Yea, after the Banksters already took their 30% cut back in 2007! Begins to look like we should draw it all out, pay the taxes, and stuff the proceeds in our mattress!
“...Yea, after the Banksters already took their 30% cut back in 2007! Begins to look like we should draw it all out, pay the taxes, and stuff the proceeds in our mattress!...”
Better convert to something that the Obamadorks cannot cheapen. Remember, just because your dollars are in your mattress, the dork/felons can still “tax” them by making them even more worthless than Obama’s Law Degree.
The Russians could use another warm water port. I wonder if you could just buy the debt and own Cyprus?
does this mean new elections?
For what? Asking Cyrus with its 8x debt to GDP ratio to put up some money before they write them another mulit-billion dollar check?
The Turks occupy part of it.
20.38 The EuroGroup has released an official statement. It recommends that Cyprus eases terms on small depositors, reaffirms the importance of deposit guarantees under 100,000, maintains that Cyprus must stick to the 5.8bn goal and asserts that the deposit levy is "one off" measure.
20.24 The EuroGroup has decided to give Cyprus more flexibility over the bank levy, a Greek finance ministry source has told Reuters. The EuroGroup has agreed that depositors with less than 100,000 should be protected, the official said.
(What the heck is a 'One Off' measure ?)
I guess Obama got to him and said "Tax the Rich"
but wasn't it supposed to kick in even before there was a vote?
...so they say.
It measn they will only do it once.
sure they will.
Well, if that’s their intention they definitely know how to make offers one can’t easily refuse.
Heh. Maybe the Greeks can sell them rest of it for the amount they need and call it a day.
The Germans claim they weren’t behind this, that it was Christine Lagarde at the IMF.
Russians have many of the larger accounts -- some of the money is even legit -- and quite possibly won't react with charity to this proposal to raise the assessment from 10% on their share. It is possible that some of the less nuanced individuals will even be angered. A significant number of the remaining larger accounts belong to various Europeans who aren't likely to feel excessive altruism either.
The Germans didn’t get them into this and have no resposibility to bail them out.
Cyprus has only itelf to blame.
The question is, does that matter any more, would you leave your money in a bank that might be subject to such a scheme to steal your hard earned money. We will know when the banks open on Friday. I see at lot of Russians yanking there money out, your average Cypriot really has no place to go!
We need a shake out.
Bond-holders ought to be punished for their bad bet on Cypriot debt.
The citizens will be chastised when their next government can’t borrow.
But that’s GOOD, because the next government will have to control spending.
What a concept!
Indeed. Too many people, even conservatives, seem determined to blame everyone but the voters/citizens. Cyprus has a people problem, just like Greece, Italy, Spain, etc, etc. People are voting for (or otherwise supporting) governments that spend more than they have and run up massive debts. The "banksters" are indeed enabling these governments, just like any creditor who provide sketchy loans to desperate people. Whatever the terms the Germans demand, the problem is still with the people of Cyprus who got themselves into this mess. No different than irresponsible people who run up their credit cards, live above their means, and do anything they can to keep it that way.
Not entirely true. Your average Cypriot could pull their money out and take a little car trip up north, let’s say, to Famagusta, and open an account at TIB (Turkiye Is Bankasi).
Turkish banks up north are not affected by this. TIB is in good shape from a financial point of view. The Turkish banking sector tends to be a bit more conservative overall, and the ongoing financial crisis hasn’t affected them too much. So that’s an option for a safe place to park your money, if you’re a Greek Cypriot.
The large accounts ( EUR100,000+) were not insured. The Cypriot banks were offering up to 11% interest per annum. Clearly a risky proposition. Didn’t Europeans learn anything from the Icelandic bank collapses? This is not that big a deal. So they lose the equivalent of one year’s anticipated interest. The smaller insured domestic accounts were paying 4 to 6% interest. So even in that case the haircut is approximately equivalent to one year’s interest.
The "banksters" are in collusion with government corruptocrats to pad each others' pockets. Greedy fools repeatedly vote for the architects of their own economic destruction. Confiscation from depositers in Cyprus or government bank bailouts in the U.S. accomplish the same result - the economic leaches (the entitlement class, the politically connected big bankers and our elected rulers) transform productive citizens into debt slaves.
I said yesterday the mobsters would actually consider it a great bargain if subjected to a 10% penalty to get their money declared “clean” from that point on. They could easily tolerate that. But the Russians know this is not the end of it. In the future the Euro bankers will feel entitled to all of the hot money, possible in stages, since they obviously can already make a unilateral claim to part of it. This is what upsets the mob. Whatever happens the Russians will not be able to do anything with the money as capital controls come in. That is until the mobster money repossessors come in.
Yes! Cyprus default. Beginning of the end for the Eurozone!
Not in terms of the bottom line, but sets an alarming precedent. Why should anyone believe this is a "one off" measure?
Banks are simply enablers. No different than creditors offering loans with high interest rates and strings attached to desperate people. The folks that focus on “banksters” are usually conspiracy theorists who think there is some giant “globalist” plot (that includes the Bilderberg Group, neo-cons, etc). The problem is not complicated and it isn’t a conspiracy. The people of these countries vote for (and support) governments that spend way beyond their means. They want it all. They want to live beyond their means, and politicians that they are voting for tell them they can.
“One off” means they promise to never, ever, ever do it again. Really they won’t.
In my mind the Euro bankers and mobsters are both crooks -- will be trying to re-up one another for quite some time.
21.48 Cyprus state TV reports that revised deposit tax would exempt savers with deposits under 20,000.
Cyprus has two existing ports. Both look considerably smaller than the Tartus port in Syria.
Matt Taibbi? The Rolling Stone? Could you pick a more left wing source? Good grief, ofcourse Taibbi blames banks. He’s a leftist who supports big government social welfare states. He would never blame people for voting for liberal government.
I’ll say it again. Banks are simply enablers. You’ll never solve the problem by blaming “banksters”. There will always be creditors around to satisfy a spending junkie. The problem is the voters who keep electing/supporting governments that spend beyond their means. Simple as that.
Ill say it again. Banks are simply enablers. Youll never solve the problem by blaming banksters.
Not just. But there's a symbiotic relationship between crony capitalists, corrupt and/or short-sighted policy makers and voters who believe that governments should be able to spend without limits. Everyone involved benefits, except the taxpayers who are left holding the bag.
What happened to Tuesday, then Wednesday, then Thursday?!?!?
This will not pass. Entire families are being threatened with their very lives. Nevertheless, global confidence in the world's monetary system has been shaken. It looks like a subjugation ploy to me.
"We can take it if we want to."
This will not end well.....
one off = “check is in the mail”,” I won’t [censored for FR]”, etc.
This is a bank bailout, not a sovereign bailout. The average Cypriot who will get his teeth kicked in by this theft had nothing to do with the reckless practices of the International Society of Banksters - Cyprus Division.
When a bank has problems, the first people in the capital structure to take losses are the equity holders. If equity is wiped out, then bondholders get haircutted. Only after that point, if there still isn't enough money left, do depositers lose money.
However, in the German-led Cypriot bankster bailout the bondholders won't lose a cent, while the depositers will get haircutted. Why? Because those bondholders are a bunch of wealthy, corrupt Berlin eurotrash. The Germans are refusing to take the losses on the bonds they purchased, so now the average Cypriot has to take it in the chin. This is pure greed and corruption.
The voters are the tax payers, and there is a short term benefit. The people get to live beyond their means. Whether that means directly collecting benefits or feeling good about their social welfare state - they are benefiting. Many of these voters will never really have to deal with the consequences - they'll already be dead when that time comes. That's the whole point of voting for governments that not only run up huge debt, but devise ways to kick the can down the road so the current crop of voters doesn't have to deal with it.
This is a voter problem. More precisely, a selfish voter problem. Politicians tell them what they want to hear. Banks play the role of enabler. Both the politician and bank may very well be corrupt much of the time, but it is the voter who put them in charge.
post of the day nomination
If that happens, it will be open season on random known democrats
BS. It all boils down to living beyond their means and continuing to vote politicians into power that do precisely that.
Chickens coming home to roost, it’s as simple as that.
When JPMorgan loses $100 bln on the next London Whale and Obama decides to levy a 15% tax on your 401(k) to direct the money into his butt-buddy Jamie Dimon's personal Swiss bank account so Dimon can afford to buy another Ferrari and a kilo of coke for his next stripper mistress, don't say I didn't tell you so. It's as simple as that.