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Post by Sir John on Mar 17, 2013 16:27:54 GMT -5
Cyprus is stealing/confiscating 7% or 10% off each depositor in Cypriot Banks.
They will front up on Tuesday morning and see the result in their bank book.
What would you do, suck it up and withdraw what is left and put it under the mattress? I certainly would, there is NO guarantee that it will not happen again next month or next year.
What would you do if you were a Spanish or Italian, Portuguese, or Greek bank customer? Whip it out tomorrow just in case? What have you got to lose or gain by sitting pat? What happens if the next country thinks that confiscation is a good idea and 20% sounds even better.
Europe is in GRAVE danger of a 'RUN' developing across the entire EU, and who would open a new account anywhere in the EU.
Not 100% certain yet, but this could be SHTF Day dawning. This decision is INSANE!!
Tighten seat belts! Brace for impact.
SJ
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Post by Swampy on Mar 17, 2013 19:00:10 GMT -5
Good point about a run on European banks.
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Post by Sir John on Mar 17, 2013 20:32:29 GMT -5
The usual reaction to a 'run' is a bank holiday, and then a restriction on withdrawals.
Can't keep them closed forever.
SJ
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Post by Swampy on Mar 17, 2013 21:01:59 GMT -5
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Post by Sir John on Mar 17, 2013 23:01:50 GMT -5
It would not surprise me to see a backdown on this.
Stupid idea that is very dangerous, confidence is a fragile thing and could die at a moments notice.
Stupid Europeans.
SJ
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Post by Sir John on Mar 17, 2013 23:05:32 GMT -5
PS,
An afterthought.
I wonder what out good friends the Russians will do. Will they get Putin to turn off the gas? Make an offer the EU idiots cannot refuse?
Interesting times.
SJ
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Post by mcnoch on Mar 18, 2013 1:17:03 GMT -5
Most of the money in bank account in Cyprus is illegal money from tax evaders anyhow. And the money needed by Cyprus is just for resstoring the banking-sector, not the country itself. Without intervention the banks might have to close and you loose 100%, so you loose 7% or 10% and can keep the rest. I think it is fair to let those that caused the banking-bubble (the super-rich UK and Russian tax-evaders) to contribute their share for the resuce. But I'm in favor of excluding the small deposits of the normal people, below 25 000 €, they are not the cause of this speculation bubble.
Of course we will see some nervous people take out their money, but where to go with it? When the Greeks were so stupid to withdraw their money from the banks two years ago we saw an extreme spike in robbery and burglary with the result that often 100 % of the money is lost.
Russia is in favor of this deal, it has no mercy with its own tax-evaders. Same with the UK government.
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Post by Sir John on Mar 18, 2013 2:35:57 GMT -5
In ANY banking system, the bank lives and dies on one thing - CONFIDENCE!
In particular it dies because of a 'run', which is the result of loss of that confidence. There is no bank on this planet that can repay its depositors over the counter, it has all been lent out!
Even a customer in Spain or Italy knows damned well that his banking system is shaky at the best of times, and if he then knows that the government (or the ECB) can simply declare that 10%, or even 20%, or maybe 30% is forfeit, then he will NOT take the risk. He will take his money and run!
United States 1933.
SJ
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Post by mcnoch on Mar 18, 2013 12:06:20 GMT -5
So far there was no bank run. Banks in Cyprus will be closed until Thursday, the expected re-negotiations regarding the deposits of the normal people have started and their exemption is expected soon. It might hit the big tax-evaders and money-launderers a bit harder in compensation. Even the stock exchanges are calm again after a bumpy start because of all the doom-sayers.
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Post by Sir John on Mar 18, 2013 12:56:00 GMT -5
How can there be a bank run if the banks are closed until Thursday?
As pointed out in #4, a back-down will not surprise. Plan B will be some form of ECB printing I think. No matter what EU rules say, they will in the end print the TRILLIONS needed, they have no real choice.
SJ
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Post by Swampy on Mar 18, 2013 20:21:17 GMT -5
How can there be a bank run if the banks are closed until Thursday?
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Post by Sir John on Mar 18, 2013 23:25:07 GMT -5
If the Europeans do NOT get their money out of the euro banks, then they are even slower than I thought. They should keep in mind that their money is an UNSECURED loan to the bank. The 'guarantee' is worthless.
Even if the politburo backs down on this, it is still in their minds.
SJ
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Post by mcnoch on Mar 19, 2013 0:40:08 GMT -5
How can there be a bank run if the banks are closed until Thursday? Only in Cyprus and Greece, the rest of Europe had a normal day and nowhere was a run on a bank, not in Italy, nor Spain nor Portugal or elsewhere. And with the exceptions of the small bank customers coming - as expected - the biggest unfairness is deleted too.
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Post by Deleted on Mar 19, 2013 2:25:51 GMT -5
No our exchange was down
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Post by Deleted on Mar 21, 2013 2:20:10 GMT -5
I've heard this gloom and doom forever , the Queens still in her Castle , the Wasington monument still stands , the money printers still work , what is the problem ? .
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