Thieves steal money from every bank account in cyprus!

And I thought the phrase was 'something is rotten in Denmark'

ekathimerini.com | Shock in Cyprus as bailout brings bank account haircut [update]





Shock in Cyprus as bailout brings bank account haircut [update]





The Eurogroup reached on Friday night an unprecedented decision for bailing out Cyprus that dictates a haircut on all bank accounts on the island’s banks with immediate effect, while cash withdrawals are not allowed for the time being, generating unrest.
Along with loans adding up to 10 billion euros from the European Support Mechanism, Cyprus will have to find another 7-7.5 billion euros from privatizations and from a 6.75 percent one-off haircut on all bank accounts with a balance up to 100,000 euros, rising to 9.9 percent on accounts exceeding 100,000 euros.
Already bank customers are gathering outside major and cooperative banks, Skai television reported on Saturday morning, as angry depositors demand their money.
Depositors will get shares of the banks they are clients of in return for the capital lost, of the same value as the haircut their accounts have suffered.
This is estimated to fetch some 6 billion euros to the state, bridging most of the gap between the 10 billion euros the ESM is offering to Cyprus and Nicosia’s requirements of an estimated 17 billion.
This is the first time in the eurozone that a levy has been imposed not on the interest of bank accounts but on the capital itself. In addition to that there is a levy on interest, too, and an increase in the 10 percent corporate tax that has been one of the main driving forces behind Cyprus’s financial progress after the 1974 Turkish invasion, generating growth by attracting foreign direct investment.
Notably, the account haircut does not affect bank accounts in Cypriot bank branches based in Greece, according to sources from the Greek Finance Ministry.
Tax on interest will amount to between 20 and 25 percent.
Changes will have to be ratified by the House of Representatives, the republic’s parliament within the weekend, while an emergency cabinet meeting is taking place on Saturday morning in Nicosia to assess the situation.
Finance Minister Michalis Sarris has postponed his official visit by two days and will now go to Moscow on Wednesday.
Cyprus state broadcaster CyBC reported on Saturday that German Finance Minister actually entered the Eurogroup meeting on Friday proposing a 40 percent haircut on Cypriot bank accounts. Sarris stated on Saturday that this had also been the proposal of the International Monetary Fund.
Sarris stated in Brussels that in view of the threat from the European Central Bank for banks in Cyprus to shut down and chaos to ensue, the increase in interest taxation and the haircut to bank accounts became necessary. “A disorderly default, that was a genuine possibility, has been averted,” he said.
“It allows our economy to proceed decisively to a new beginning.”
He also noted that after the dramatic meeting of the eurozone ministers a further slashing of salaries and pensions has been avoided and confidence in Cypriot economy is restored. He qualified the bailout funds loaned to Cyprus as sustainable and manageable and will not constitute an unbearable weight on the next generations. “It spreads the load on this and on the following generations,” he said.
IMF head Christine Lagarde said "the Fund has always said it would support a solution that is viable, and this agreement fulfills this condition, so my recommendation to our board will be for contributing in the funding of the package."
Opposition leader Antros Kyprianou, the General Secretary of leftist AKEL, accused the government of not consulting the other parties, saying that "the government bears full responsibility for developments in the economy as instead of choosing the road of consensus it has decided to go it alone."

 

Big deal going on right now. No mention in the MSM. People will realize what happened come monday morning. Watch what gold does this weekend for a primer as to what it will do on Monday- it could go either way, as the dollar will spike because the euro will tank. OR gold may spike because everyone is walking on pins and needles.

 

I am just waiting to see what happens to Gold, Silver and BitCoin tomorrow.

Guessing that people are going to be scrambling to get money out of banking and into stuff to stuff under the mattress or otherwise.

Either way, I'm going to say that there is sure to be some death that is going to come about due to this decimation of savings.

 

I think they should have gone for 100 percent.
this 10 percent thing probably won't wake up enough sheeple.

You know how people say you can't eat your precious metals? Well, I'll bet those getting the haircut wish they had PM's. Can't confiscate quite as quickly as freezing your bank account and just subtracting a pound of flesh (or two, three)

Seriously, this does not bode well. Hopefully the Cypriots take some banksters out back and make them disappear. Otherwise, this will just embolden them.

Here we go!

 

I don't quite agree with bitcoin, as you need a working internet connection to play with it. Once that is gone, so is your bitcoin.

Possession is 9/10ths of the law. My father and I used to laugh at that statement- not fully understanding what it ment- until last night when we were discussing the implications of this mess. I unintentionally added "if they had physical possession (of the money) the banks couldn't take it" and it clicked into place, turning 1930's wisdom into 2010's understanding.

Anybody joining me in removing some savings from my local branch and stuffing a mattress tomorrow?

 

One could put their wallet on a memory chip, embed it into an image, print it out or just plain memorize it (not with my memory though)

Bitcoin has jumped 1 dollar to 47.50 since the Cypriat freeze. Mind you that could be just daily fluctuation but if there is a flight from the Euro tomorrow, and BitCoin makes a big move north, I'm going to say, that it is cause and effect.

Yes internet is needed for the network to function properly, but the internet isn't going away in this crisis. So to me, it's just another currency, albeit, not one that governments/corporations control and that's one of the reasons I like it.

Anyway, I think that this is mostly a EU / Eurozone issue currently. I don't see it spreading to other currencies like USD, CAD, AUD, ZAR, JPY, CHF. I'm not too sure about the Brit. Pound. They are members of the EU but don't use the Euro. But they've got their own banking problems.

I won't be grabbing my money out of the bank tomorrow as that's not what I worry about.
It's the money sitting in my 401k that I do. And that can be confiscated by our friendly bankers and government helpers. I've been watching out for our friendly government passing legislation to 'take over' the retirement systems. They introduce a bill to do that, I'm taking out a loan against my 401k and buying PM's.

The international spot gold market opens in about an hour. It's currently at 1593/oz.

Wonder what tomorrow brings?

 

I agree. Seems like a pretty good time to get some more stuffing for the old matress.

 

wonder if Cyprus South will turn out to be the little domino that starts the major fall of other banks - golden jackass was expecting a small bank starting the domino fall.

 

And now I officially worry. AgAuGal hasn't posted since, 2007.
Based on user name, probably interested in PM's and Money in general.
and now a post? Leads me to believe that @AgAuGal is concerned.

Any insights or thoughts @AgAuGal? Why have you been away for so long and now return?

 

I have no doubt that at aomw point in time the Federal gooberment will sieze all retirement accounts. In my personal cas my income has dwindled down to near nothing so I do most all investing with after tax money.

Tax free investing is fine but the reality is it takes alot of your freedom away, and if in a buind you need the money you will loose half of it to the gooberment.

When rich bankers or gooberments can legally steal money from anyone they choose yoou would have to figure the world economy is about to collepse.

 

Or that banksters are going to have an open season on them with no bag limit.
AND, I think that time is coming close.

Cyprus is on a bank holiday (today was the only official holiday) until thursday. This ought to be interesting. If the ECB, IMF and EU get away with this, it's only going to embolden the banks and governments to do the same elsewhere.

I think then there will be huge bank runs all over europe.

At that point, Italy will be next. IMO

 

BTW, BitCoin is at 50.
It's up 6 percent vs the euro since the account freeze in Cyprus.

Gold is up 0.8 % vs. Euro : 0.82% vs USD
Silver is up 1.3 % vs. Euro : 0.66% vs USD

And why the eff is the dollar up? Don't they know that the dollar is just as vulnerable (if not more so) than the euro? We've just got a bigger army to ensure that you take our dollar.

 

Nevertheless, once banks open, there is going to be a run in Cyprus.
7,10,15 doesn't matter the percentage.
The only way to prevent a run is 100% 'Haircut' that way there is no money to withdraw.

this folks is going to be one of those teaching moments for us to learn some new tactics. That are going to be in use upon others in the near future. We watch, we learn.

 

a lot of that stolen money was the property of former KGB goons . . . . real smart

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