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?
Social Security, too, was for one brief moment your money.
Now it's theirs.
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 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.
“But, really, what right does a bank have to say that you cant have YOUR money?”
Because when you put money in a bank, it’s not YOUR money, it’s the BANK’s money!
What people dont realize is that when they deposit money in a bank, its not for the purpose of the bank to hold on to THEIR money for THEIR convenience, but what they are really doing is LOANING their money to the bank! They are actually a lender and not a depositor. And once they loan the money to the bank, it’s no longer their money, it’s the bank’s money! This is all spelled out in the account agreement one signs with a bank, and by loaning your money to the bank you’re giving the bank permission to use the money you loaned them pretty much as they see fit, and there is no real guarantee that youll ever get back any of the money you loaned the bank!
Prior to the illusion of FDIC insured deposits (loans) and its equivalent in other countries, banks used to go bankrupt all the time, completely wiping out ALL investors deposits. That was a big part of the death spiral of the Great Depression and why it was necessary for FDIC insurance to be invented, or otherwise no sane person would ever loan their money to a bank again.
And like in the EU, the FDIC actually only insures accounts up to a certain limit, and for anything over that there simply are no guarantees youll ever get the money you loaned the bank back. Period.
Now when banks DO go bankrupt, there are SUPPOSED to be lawful ways in which the remaining assets are distributed to the banks debt holders in an orderly, lawful fashion, the depositors being simply one class of debt holder. That process has worked pretty well in the U.S. recently, but given the propensity of the Obammunists to ignore the law and just do what they feel like, all bets are off for the future.
And in places like Cyprus, it sounds like they didnt have ready-made procedures for bank bankruptcies anyway, so they had to make some up quickly. One could label such ex-post facto, ad hoc measures theft, but the net result to those foolish enough to make giant loans (deposits) to these crappy banks would probably be pretty much the same if Cyprus had a U.S.-like process in place prior to bank bankruptcy anyway, namely the depositors money has simply completely evaporated because the banks made really, really bad investments with their depositors loaned money, and theyd wind up with nothing anyway.
And most likely nothing criminal has been involved here either, except maybe criminal stupidity or maybe criminal greed by both the depositors and the banks themselves. Because the depositors were chasing unrealistic returns promised by the bank, and which they the bank delivered by investing their depositors money in Greek bonds. Greek bonds were paying extremely high interest rates, but the high interest rates were being paid because it was likely the bonds would fail, which is exactly what happened.
The takeaway lesson here, though, is simply dont loan your money to a bank. Just keep enough money in your bank account to pay next months bills. Even better switch as much of your transactions as possible to cash. Its actually easier to do than most people think. For example, I live in a small town and pay all of my insurance and property taxes by simply walking in and plunking down the cash. I could do the same thing for my utilities if I wanted. And I never use plastic except when I buy stuff on the Internet.