Skip to comments.Europe is risking a bank run (Cyprian haircut)
Posted on 03/18/2013 11:19:50 AM PDT by RoosterRedux
Sir Mervyn King once said it was not rational to start a bank run but rational to participate in one once it has started. The governor of the Bank of England was right, of course. On Saturday morning, the finance ministers of the eurozone may well have started a bank run.
With the agreement on a depositor haircut for Cyprus in all but name the eurozone has effectively defaulted on a deposit insurance guarantee for bank deposits. That guarantee was given in 2008 after the collapse of Lehman Brothers. It consisted of a series of nationally co-ordinated guarantees. They wanted to make the political point that all savings are safe.
(Excerpt) Read more at ft.com ...
When we consider how many bad ideas from Old Europe make there way over here, perhaps a run on our banks will be needed in the near future.
Just when you think the powers that be can’t get any more stupid.
Anyone living in or investing in the unstable economies needs to jump onto the leading edge of this bank run. Banks are now for short term funds only, not for storing your savings. As for the US, I’m not sure how safe our money is here either. I’ll be reviewing what I own and what the socialists might attempt to grab if they are bold, but so long as we have certain other constitutional rights, I expect them to restrain their confiscatory urges.
I cannot begin to think of a more stupid and senseless action than what theyre doing in Cyprus. Regardless do what they finally decide to do by Thursday when the banks supposedly reopen... Who in their right mind would leave any money in a Cyprus bank account after this? They’ve killed the Cypriot banks, and this could easily spill into other European banks. Then the U.S.
The only hope they have is to profusely begin declaring that no such measure is happening, and will never happen... Along with paying some exhorbitant interest rates to hopefully keep some deposits.
If the bank runs don’t kill them the interest rates will.
I’ve never seen anything as breathtakingly idiotic.
Maybe Europe will get smart and ditch the Euro.
S/b “regardless what they...”
Seems to be a non-story in much of the world today, at least after PPT got control of the equity futures during the night.
Complacency is a disease with no easy cure.
“In the land of the blind, the one-eyed man is king.”
This stunt opened up at least one eye - many others just raised an eyebrow - and will be the first to howl when the “one time” (cough) charge hits them.
Nonsense. What this WILL do is get the Euroweenies to stop asking for bailouts.
They needed a tough measure. I have no problem with them doing it to a region where over 50% of the depositors are Russian.
So they take 10 percent directly from your money deposit, big deal, they’re taking about that much every time you buy something at the store. And people keep voting for sales tax increases, stupid idiots. In the old days, you got 5 percent interest on your money in the bank, and got sales tax hits under 5 percent - offsetting each other. Now in Cypress they have a triple whammy - no interest, a ten percent haircut of your deposit, and taxes. Obama probably has people working on implementing this for us. The deficit ain’t a problem as long as you have someone to steal from.
Oh, no. Russians and Arabs taxed more on their Cyprus accounts. Hurry up, world. Panic, and inflate the funny bond bubble.
You have no problem with the ransacking of the innocent 49% because 51% are supposedly guilty of something (as though the Euro bankers aren't criminals on par with any Russian mob)? Amazing!
Would you put any of your savings in a Cypriot Bank now?