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Posted on 03/26/2013 5:09:41 AM PDT by MeneMeneTekelUpharsin
Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced. The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy. The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.
"If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?'," he said. "If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders."
Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.
(Excerpt) Read more at telegraph.co.uk ...
As the informed FReepers have already read, the Russian bad boys have already emptied their Cyprus bank accounts via Cyrus branches in Russia and UK.
We are already in a (masked by printing money & fabricating economics stats in the USA) depression. What’s the next step down?
Meet Mad Max?
March 26, 2013 12:00 A.M.
Cyprus: Can It Happen Here?
Quantitative easing is another way to steal your savings.
By Thomas Sowell
That is in fact already happening. When officials of the Federal Reserve System speak in vague and lofty terms about “quantitative easing,” what they are talking about is creating more money out of thin air, as the Federal Reserve is authorized to do — and has been doing in recent years, to the tune of tens of billions of dollars a month.
When the federal government spends far beyond the tax revenues it has, it gets the extra money by selling bonds. The Federal Reserve has become the biggest buyer of these bonds, since it costs them nothing to create more money.
This new money buys just as much as the money you sacrificed to save for years. More money in circulation, without a corresponding increase in output, means rising prices. Although the numbers in your bank book may remain the same, part of the purchasing power of your money is transferred to the government. Is that really different from what Cyprus has done?
http://www.nationalreview.com/articles/343890/cyprus-can-it-happen-here-thomas-sowell
I guess the financial “crises” will become a much more common event now.../s
This statement was beyond dumb. Almost like they are trying to “create” a bank run.
I would think Swiss banks would be the beneficiaries of such talk.
If the Euro and banks are such a failure that it requires the looting of saving accounts then they should get rid of the Euro and the banks. But then again the whole point of the Euro IS to fail so that they can loot the saving accounts and force the euro nations to give up more and more sovereignty. And when the people are completely broke they will cry out for some one to save them and the very Globalist Banksters that impoverished the people will be ready with a solution: A One World Government, a One World Currency and a One World Bank that the Banksters own and control.
You’re behind the times.
The Federal Reserve and Federal Government have been robbing us a few percent per year since the Fed was first incorporated. Your dollar today is worth about $.05 when the Fed was incorporated. Maybe less.
Several factors are keeping Wall street flying high imho. 0% interest from the banks means people are wanting some kind of return and are willing to gamble their money to make more, investment from foreign currency in our markets as a safe haven (which will only increase now) and the false sense of prosperity that $14,500 DOW index is giving people. (Until you factor in the devaluation of the dollar since 2008.)
I have been a glass half full kind of guy since I was a kid, but lately, especially after spending the last 3 weeks trying to find a lousy box of .22 shells for my kid and having no luck at all, I am really starting to be convinced I need to start prepping in a serious way.
During a run on a bank its best to show up early before the crowd does. Sounds like now is the time.
Gold?
Cyprus is the break in the wall of infinite printing. Bernake has been funneling trillions of FED zero percent dollars to the Euros trying to save their banking system. This has failed, as predicted, and now we are moving into the haircut / bank run phase. All trust in the international financial system will soon begin to erode and everyone will circle the wagons.
The elites at the top of this blatant stealing of depositors money will soon discover the nature of unintended consequences. When depositors and savers start looking at their mattress as more secure than a bank, the fractional reserve banking system will rapidly collapse with nothing to leverage but other suckers promises to pay in the future if things go bad (i.e. the shadow quadrillion derivative market). Bernake has pumped for 5 years trying to save the derivative death star while refusing to reign his buddies in. Looks like that chapter is coming to a close one way or another as the Euro has now set down the path of depression banking.
Liberals are such morons.
I can’t wait to see what Nigel Farage has to say regarding this obvious failure of the Euro and Eurozone dictatorship.
That’s a warning. Italians get your money out of the bank now!
Look to the volume of shares traded. Compare today with 2007 before the slide and the only answer is the slush fund bailouts are doing the buying. As long as the "market" shows anything up, the low information doofusses think it is all good.
I heard something like the volume was 3.x billion before the housing bubble bursting and lately it has been about 500K.
Just do a google for "stock market volume history" and the list of stories on this is full of examples.
What’s the real problem with what this guy has said?
He is saying in effect, end ‘too big to fail’ in Europe and let failing banks fail. Insured deposits remain guaranteed, it is those who invested in the bank, or have accounts over 100k Euro that would take the loss.
They’re trying to end the moral hazard they created by socializing the bank losses in the first place.
What he said is truly what needs to be done, is the problem just that he said it out loud?
"Guten morgen, Herr Drill, and welcome to our bank! Here's yer toaster."
"Danke sehr."
"Ze gut news is zat ze toaster iss yours. Ze bad news iss zat ze money iss ours."
The guys in Brussels are trying to keep the ponzi scam running. Unfortunately folks are starting to realize that the folks in Brussels will have advance warning when the bank system will go down the tubes since they will cause it. Look for bank runs through out Europe starting basically now.
In a safe deposit box guarded by the gnomes of Zurich,Geneva.
Democrat administration. If it were a Republican administration, the media would have already started bank runs here.
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