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 ...
That’s Evil to the core.
I saw a street interview of a woman on Crete today. To
paraphrase her: “We must work harder to make up for this”.
Stupid woman.
Shep Smith is a wimpy little Progressive. He loves Statist propaganda.
They have withdrawal limits now, set at 300 Euros. This means the following:
One could say that "the money, up to 100K Euros, is NOT confiscated" only if you can withdraw it all whenever you wish. This condition is not met.
I understand what you’re saying — it is as good as confiscated.
They claim the capital controls will be ended soon but I really doubt that.
Of course, nowadays there can be silent runs, with people withdrawing/transferring money using electronic means not in existence during the last Depression.
They were not given a decision.
300L per day is the max ALLOWED!
My money?!? Allowed?!? Really?!?
This will spread.
That would lead to a barter system developing, people would stop taking money.
True.
“They were not given a decision. 300L per day is the max ALLOWED! My money?!? Allowed?!? Really?!? This will spread.”
We cannot let ‘capitalism’ take the hit for this, as the left will try to push. The reality is that socialism has had a huge role, by far the biggest role worldwide in the financial crisis.
I don’t know the details about Cyprus, but I do know that Greece was living a socialist utopia lifestyle for years without the GDP to warrant it. At some point the bills come due. The problem is that those who have savings probably weren’t part of the problem (with the exception of their votes for socialists, if they did so), but will suffer the most loss.
From our US perspective, who here thinks the FDIC is anything more than a feel good acronym? If there were a run on US banks, about the only thing the government could and would do is to print more useless money - which would just dilute the value of whatever we were able to salvage anyway.
I was thinking today about the old Smith Barney commercial “We make money the old fashioned way. We earn it.” The reality is that the current crop of leftists in power, starting in the US with the President, don’t believe that you can ‘earn it’. ‘You didn’t build that.’ You didn’t earn that. Property and the concepts of ‘earnings’ and ‘savings’ are no longer sacrosanct. They’re just words now, and an obstruction to the agenda of those who are in power in much of the world.
And many businesses will be closing because their capital and payroll have been swiped. Here is one story.
http://tickerforum.org/cgi-ticker/akcs-www?post=219237
Thanks for that link.
We ain’t seen nothin’ yet.
The bottom-line reason the banks blew up in Cyprus was that they were using their reserves to buy Cypriot gov’t bonds. Beyond the folks now not trusting the banks with their Euros nobody but nobody will be buying gov’t bonds. Not only are the banks on their way out of business but the gov’t will now be limited to it’s tax income stream-——————————————————————————————————————Hang on folks-—the exact same thing is coming to a bank near you. The biggest US bond trader in the US, Bill Gross of PIMCO, announced some months ago that he was on his way out of US bonds entirely. I sold all mine back in the mid 90’s when Clinton was scaring me and haven’t owned one since. Greece drew the map on gov’t bond defaults and our own genius Beranky doesn’t know a dammmmm thing that the Gleeks didn’t know. He’s printing/digitizing/papering/faking/ imagining some 85 billion dollars a month of unsecured US bonds, they can’t be sold at zero interest rates, and there is absolutely no way to make them good. Divide Obamuzzie’s 17 trillion dollar debt by the 300 million people who are on the hook for it ( can’t do it here because I don’t have enough zeros) and you see how much money each of us is on the hook for——and doesn’t have.
I’m sure that there will be a back room deal to put more dollars chasing bonds. It will come after the next big market drop. Something about 401Ks are retirement plans needing to be protected and that the only way to do that is to require investors to put some X% into bonds. It will likely start small, say 5% or some such. Later it will get larger and larger. There have already been calls by the Dems for this.
Mark my words, its coming.
I don’t think you need to worry about politicians refusing to leave. It far easier for them to simply rig the election so that they can claim they were never voted out.
“Seniors can’t remove their SS income, Social Security has gone electronic.”
Socialist security was always a ponzi scheme. Now if bush had been successful in setting up individual back in 2005 accounts you might have some form of point.
But the AARP killed that using the dollars of millions of Senior members. There really is nothing keeping theses payments from being cut back. In fact I would say given growing welfare-state demands its only a matter of time before they are cut back if not in dollar amount certantly in value.
There is no way we can prevent that, and the demographic math is already in. Simply put seniors have no way to protect that money, they don’t even have a claim on it in an account much less a bank of any kind.
Indeed strictly speaking all the money has already been spent by politicians as quickly as it was collected.
People need to be carefull in comparing EU nation’s financal problem with American problems.
EU nations are comparable to U.S. States in that they can’t tax by way of inflation. This has forced them to take direct acts to balance their books rather than indirect acts.
People don’t like direct acts because they can see them directly. But people tend to missatribute to a bad economy or “corporate greed” the effect of indirect acts such as inflation. Thus indirect taxation thou inflation is politically common.
The politician simply reaches around to your left pocket to take your money while blaming the thief on the guy standing to your left. As a group voters fall for this lie almost every time, because following the money is far too much work for your typical voter. Simply put as a population we are apathetic, and easy made fools of, particularly by figures we want to trust.
I digress... the U.S. Federal government will not likely run into any such problem because it has the power of indirect taxation. People like Obama will simply convince the majority to stop worrying about debt, and when interest rates become prohibited to “Take over the bank” and defraud the lenders.
E.U. nations don’t have that option, they have to be open and more honest with their population. At least as far as getting money goes.
"Comment on the web, based on my repeated contention that the world's banking crisis was precipitated by the CRA, which concocted the nearly-limitless might of America's toxic home-mortgaging power to fund this country's unsustainable government largess:
I had a form of point, you merely missed it. It was that automatic electronic deposits can’t be protected. Seniors who subsist on SS can be effectively exterminated with the stroke of a key.
“I had a form of point, you merely missed it. It was that automatic electronic deposits can’t be protected. Seniors who subsist on SS can be effectively exterminated with the stroke of a key.”
While this is technically true I don’t really understand its relevance. Whether its the stroke of a key or the stroke of a pin the machine is just as effectively stopped.
The only difference between a computer and an old style paper pusher is the speed and accuracy with which it processes data and executes commands.
So it takes 1 day instead of a week to carry out a congressional or presidential order to stop issuing SS checks.
What a success this has been. Coming to a savings bank near you.
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