Skip to comments.Chaos in crisis-hit Cyprus as thousands of savers rush to withdraw cash
Posted on 03/28/2013 12:34:05 PM PDT by Jean S
Chaos in crisis-hit Cyprus as thousands of savers rush to withdraw cash from banks which have opened for first time in two weeks
Ten of thousands of Cypriots scrambled to get hold of what savings they could today after the island's banks opened for the first time in two weeks amid tight restrictions on withdrawals.
There were chaotic scenes outside some banks, with one branch manager in the capital Nicosia forced to placate angry customers clamouring to get in ahead of opening.
Staff had turned up for work early as cash was delivered by armoured trucks, while armed police and hundreds of staff from private security firm G4S were placed on standby over fears of a run on deposits.
Cyprus's banks have been closed while the government negotiated a 10billion euro (£8.5billion) bailout to recapitalise its ailing lenders.
As part of the deal savers with more than £85,000 will lose up to 40 per cent of their cash, a measure which has prompted fury among the cash-strapped island's wealthiest residents.
(Excerpt) Read more at dailymail.co.uk ...
Soon coming to a bank near you!
You cannot save an institution where people save their money by stealing it.
If I were a criminal in Cyprus I would be sure to follow some of the withdrawals home , and be looking under their mattresses the first chance I got.
But it will. The money which the Banksters and their Government allies made vanish won't be there to loan, make payrolls or invest in new technology.
Much like the money our own Banksters made vanish overnight in September 2008.
Agreed, the unintended consequences will be that people will no longer trust their savings to a bank. Home safes, strong boxes and home furniture will be the new savings method.
It will not be the run on the Banks that will kill them, it will be the lack of deposits. And the velocity of money will stagnate to near zero or possibly even go negative. That is what will kill the banks.
It will take a whole new generation of citizens to build the trust again.
Whoa, didn’t see that coming......
Can’t believe it’s not happening in Spain too. They’ll wait until it’s too late.
And I read that tomorrow is a normal holiday and the banks will be closed again. In any case withdrawals are severely capped or else they would be already out of cash.
They would be if everyone were allowed to withdraw all of their money.
But, really, what right does a bank have to say that you can’t have YOUR money?
Soon coming to a bank near you!
The Obama administration’s preferred method which
they would have no qualms about using if they had
I see a huge opportunity for someone selling home safes and strongboxes.
At the current exchange rate £85,000 is a little less than $110,000 US.
Take away 40% and you're left with $66,000.
Does anyone here doubt that Obama and the democrats would do the same thing if (when) they feel they can get away with it?
And when they do it they will have help from some RINOs too.
Napolitano didn't buy 1.2 billion rounds of ammunition to keep land grabbing French Canadians out of Detroit.
I withdrew nearly all my money 4-weeks ago. Saw it coming!
But while tensions ran high initially, the atmosphere was largely calm, with some customers saying they wanted to support their country by not rushing to take all their savings out.
Some British politician said that it was foolish to start a bank run, but even more foolish, once it started, not to participate.
Those patriotic people above will regret their decision in a few days/weeks. .
Sigh... This looks eerily like one of those “buy ammo” prophecies I’ve seen over the years on FR. I didn’t listen, I’m kicking myself for it.....
Social Security, too, was for one brief moment your money.
Now it's theirs.
This is the first “negative” article I’ve seen about the banks re-opening. Most portrayed the people of Cyprus to be happy and understanding - with many deciding to leave their money in the bank “for the good of the country.” This was nothing but pure propaganda. Since everyone is limited to taking out just a few hundred euros a day, why stand in line at a bank? You just have to go to a bank machine.
BTW, how many people have read that the head of the Cyprus Central Bank and the former President were Communists? If you want to know why the country, you need to see who was running the show.
Citizens of Cyprus fear if the government controls how much of their own money they can have that it’s not their money anymore...
Their fears are well grounded.
At some point the goverment will probably print paper script that expires monthly to avoid hoarding of cash outside of a bank.
Actually, only 30-40% of the part over 100,000 is being confiscated, not that that is much consolation if you were WAY over.
Wow 40 percent of their cash.
A lot of good that does you when they cancel outstanding currency and issue new currency, or inflate it away, or incinerate it with flash grenades. But I still understand the sentiment.
The ATM’s are empty.
Once those deposits leave, a society will quickly generate into black market, barter and other types of transactions which become very hard to track and even harder to tax.
The socialist Utopians in the EC could be looking at a societal collapse just as quick and dramatic as Russia's eastern European satellite states in 1988.
Those outside the Eurozone like the UK and our own socialist masters will not be able to keep it from crossing the English Channel and even the Atlantic.
They had there parliament vote in capital controls. So in actuality it was the government that said they could not get all their money.
And the congress will do the same thing here in the US when it becomes necessary.
In addition. I saw pictures yesterday of big box vans that were delivering Euro’s to Cypriot banks to combat today’s little problem.
What we have today is the biggest Shell game in history. All coming out to the pockets of the brain dead peon citizens of the world.
I know this may not sound conservative, but the people of Cyprus, like in many Euroweanie Countries deserve to have their savings confiscated. They demand that the government provide for them from craddle to grave and then do eveything they can to avoid the taxes that are necessary to support the services that they demand. Stupid is as stupid does.
Here in the USA too.
I'm seriously thinking about a nice deep concrete pit under a garage workbench - say something a little longer than my longest rifle with enough room for a fire-resistant safe.
other sources are saying they will take up to 80% and that it will takes years to get out the remaining 20%. Which is just another way of saying you ain’t never getting it back.
I believe they actually do have that right and, besides, your money isn't there. It's been lent out or invested in Greek bonds [which caused this crisis in the first place when the EU made Greek bondholders take their haircut. The Cypriot banks lost about half their reserves].
The same is true anywhere in the world -- only about 10% of your cash is at the bank. They just depend on the fact that everyone won't want his at the same time.
And using that logic then you could say the same thing about US savers.
The real culprits are the governments and the bankers. People get used to living with what they have until bankers run unsustainable scams so that governments can create unsustainable entitlements. Therefore getting people used to what they should not of ever had. This calamity was planned and intentional from the get go. As it serves the interest of those who want to destroy freedom and the west. But that is another subject.
The part I had a hard time believing were all the people who went to deposit money in their accounts to show solidarity and support for Cyprus! Unbelievable!
Obviously propaganda of the highest order.
How did these accounts accumulate over 100,000 Euro if they belong to people who sucked welfare from cradle to grave?
There is some hot money from Russia, BUT MOST WAS EARNED LEGITIMATELY IN BUSINESS OR INVESTMENT, much by retired foreigners (e.g UK).
With a Greek name I'd expect you have at least a minimal understanding of that part of the world.
Well, at least it's no worse than your comprehension of any other topic.
Don’t give them any ideas — oops — too late
+1. It appears that by far the majority of people are just rolling over and taking this, SO FAR (we've yet to hear from the Russian mob account holders, at least those who didn't get their money out last week).
The under 100,000 people have a false sense of security over the newest terms leaving their deposits alone -- THEY'RE NEXT!
what did anyone expect?
Really,Those poor people.Takes so long to save it also how are they going to pay the bills.
Wow, really? That is unbelievable. Do you have a link to that story?
I don’t think the Russian mob is going to want much publicity.
Yes ... In this country as well.
As I see it the banks made a “business” deal with Greece and lost...the bank then should fail, not be rescued.
I don't believe this had to do with affecting the Euro as they are saying...rather all about controlling flow of monies by the few Big Guys at the top and overseeing all financial transactions in the European Conglomerate.
They have managed to bread fear and uncertainty, along with a dependency on the decisions they make or don't make....all which I am convinced is an “illusion” and “distraction”.
Wonder just how many were “paid off” and “bartered with” to bring the world this Show. ..while other more dastardly things are being set up?
What is the spot price of gold in Cyprus?
They are going to steal retirement accounts. Dems held hearings and wrote the “emergency” leglislation when they had power during the Obamacare mess. As Nan from Fran says, we will have to find out what is in it after it is passed.
It’s true, they’ll just do what needs to be done. Maybe not immediately...long memories.
I’m willing to bet that the majority of Cypriots with over 100K Euros aren’t the ones voting for cradle to grave services. Same as it is here.
You’re right. I bet certain people are more than a little nervous.
People like Nan from Fran are going to need bunkers.