Skip to comments.Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief
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 ...
My big worry is efforts to convert 401k assets to federal IOUs, uh, I mean Gubmit Bonds.
I think I’m going to the bank today.
Look for bank runs everywhere in Europe.The guy’s not too stealthy by making a statement like this.
Today it is Cyprus bailout, yesterday Greece, tomorrow Spain or is it Italy, Ireland, or eslewhere.
We have a perpetual rolling bailout, and soon a Eurozone Crisis/Crises Fatigue. Healines of ‘such and such crisis’ will no longer have meaning even if it spread out throughout the world.
Except when IT hits you and me personally.
A prudent person would start going to their bank once a week. Kind of a slow motion run.
and someday, if and when that happens, payments back from new govt bonds issued to replace seized retirement accounts will be means-tested, like soon to be social security, so you only get back according to your “need” and you get to “contribute” to others who have “needs”
It is the ultimate grand redistribution of wealth of the middle class (the uppers will always have shelter and advance warning)
How many years left? 3? 4? 10?
Coming to the USA soon
The bank of choice has just become precious metals stuffed under the mattress.
Diamonds may be a good alternative. And who knows, they may be easier to obtain than precious metals, for which there may be a call to confiscate.
For traveling money, keep some stuffed down in the sock as well. And look for unguarded border crossings.
Pull this crap on your own and they put you in prison.
“Uh oh. It’s spreading.”
And Wall Street says rally on... wtf is going on here?
Are they trying to kill the credit industry?
This man’s arrogance is startling. To publicly announce that this is a future acceptable action is proof of a level of hubris we have not yet seen even from the Eurocrats.
If the PIIGs don’t start seeing banks runs soon, we will know for certain that the minions of Europe will submit to anything. That is very frightening.
Bammy and his cretinous followers are watching this very carefully. Europe is their template.
Time to transfer your savings to a mason jar.
Anyone that is not truly spooked right now is really dense.
Wow — I can’t think of a better, more effective way to crash banks than to create hysteria about savings account confiscation.
Oh Dear Lord in Heaven protect us. The EU is falling apart and John Kerry is our Secretary of State.
What - do they think people will just leave their savings in banks vulnerable to confiscation?
No, they’ll pull it all out, and the government will have to steal it the way our government is stealing it - debauching the currency through the printing of money.
Same place as Christine LaGarde and other IMF “diplomats” keep their tax-free salaries
IMF slogan: Tax free, Not for thee, but OK for me
Psst: I wonder if the Russians have heard that Puerto Rico is for sale?