Cyprus steals 10% of all depositors money, trigger bank runs.

[kingjason]

I'd try to burn down so many buildings....

I am not sure you would run into much opposition.

[stevo]

It was just announced that the banks will now be closed till Thursday.

I'd try to burn down so many buildings....

I bet there are many there that totally agree with you. I know I would.

Stevo

[Denny]

Now I don't feel like such a looney.

[Strychnine]

[LANTIRN]

It is the investment side that lost all the money. Consumers are shielded if investment banking was separated from commercial ones.

We used to have this in our country under the Glass Stegal act. One of the reason our economy went to shit in 2008 is because that act was repealed in 1998 under Clinton (and a Republican Senate). Since then, many commercial banks were merged with investment banks on Wall Street. That is of the reasons we had so many problems in 2008 when the investment side went straight to hell. All the commercial money dried up and no one wanted to lend anything.

It's actually more complex than that but segregating commercial and investment banks, after the Great Depression, is generally a good thing.

Very interesting to know. Thanks for the info.

[Broncojohnny]

Now I don't feel like such a looney.

They just keep proving you right.

[Denny]

They just keep proving you right.

That's OK. I'll just come up with some wilder scenarios and dare the globalists to match it!

[Broncojohnny]

That's OK. I'll just come up with some wilder scenarios and dare the globalists to match it!

I am afraid they might.

I like how they keep delaying the opening of the banks in Cypress. lol

[Denny]

Germany is definately doing it right this time.

[Strychnine]

http://investmentwatchblog.com/breaking-russian-treasury-unable-to-meet-its-financial-obligations-all-government-agencies-see-asset-freeze-in-cyprus-prime-minister-medvedev/

Russian treasury unable to meet it’s financial obligations. All government agencies see asset freeze in Cyprus-Prime Minister Medvedev

Interesting interview by Medvedev today who admitted that most Russian government agencies use Cyprus for it’s financial transactions.

A few points here:

• -How corrupt does a country have to be for its government agencies to use a tax haven for financial transactions?
  
• -From latest reports, the Cypriot banks might open on March 26th at the earliest. That’s two weeks after being shut down. That’s two weeks of unmet financial obligations, ie government employee salaries, public works financing, unpaid pensions etc etc…Expect unrest on the streets of Moscow
  
• -The EU/Germany are certainly aware that 95% of all Russian money goes through the Cypriot banks. Certainly they were well aware of the consequences this would lead to. Is this the first salvo in the new world war??

Russia complains government accounts blocked in Cyprus

Russian Prime Minister Dmitry Medvedev complained Thursday that accounts of Russian government agencies in Cyprus had been blocked as Cypriot Finance Minister Michalis Sarris was set to resume talks in Moscow to secure aid.

In comments released early Thursday, Medvedev warned that Russia would take a “firm” stand on Cyprus because the accounts of governmment structures had been blocked on the island.


Cyprus ATMs Low On Cash, Credit Card Payments Refused; Medvedev Compares Europe To USSR

So far the market has been largely oblivious of the shattered trust and changed dynamic in European banking dynamics for one simple reason: Cyprus banks have been closed, and likely will be closed indefinitely, preventing the mass media from broadcasting what happens when an entire population, and foreign depositors, decide to clear out the holdings of their bank accounts, either physically or electronically, and the public anger the will result when they find that courtesy of fractional reserve banking, only a tiny amount of said deposits is actually present. In the meantime, retail depositors have had their withdrawals limited through a form of capital controls, allowing them to pull only as much as the daily limit is on given ATMs. So far the banks have had enough cash to keep ATMs stocked up to the daily required minimum, but that may soon be ending. BBC’s Mark Lowen, in Nicosia, reports that “Cyprus’ banks are still giving out cash through machines – although with limits, and some are running low.” Ironically, as physical cash becomes ever scarcer, merchants are now clamping down on electronic payments unsure if they will ever be able to convert electronic euros into actual ones: “Some businesses are now refusing credit card payments, our correspondent reports.”

[sc281]

It's like watching a train wreck in slow motion. The shit is hitting the fan over there with people trying their darndest to get cash out of the banks, and tgey aren't even open. Just wait for the shitstorm to come when people can actually get in the doors!


I will cede that this has been a good thing for me. It reminded to get an extra few months worth of cash to keep around.

[Forever_frost]

The Euro is finished

[slow99]

It is the investment side that lost all the money. Consumers are shielded if investment banking was separated from commercial ones.

... Glass Stegal act ...segregating commercial and investment banks is generally a good thing.

Yep, I'm familiar with the banking system. I'm not disagreeing with you that separating the two is probably a good idea - I just don't see how it applies to the Cyprus situation. I've kept up with it this week and I haven't seen anything that tells me it had anything to do with it.

It's like watching a train wreck in slow motion. The shit is hitting the fan over there with people trying their darndest to get cash out of the banks, and tgey aren't even open. Just wait for the shitstorm to come when people can actually get in the doors!


I will cede that this has been a good thing for me. It reminded to get an extra few months worth of cash to keep around.

I think it could get ugly. Interesting times for sure - we held off on a substantial allocation shift this week b/c we're waiting to see how this unfolds. The ^vix has been remarkably low lately as well. At least I could use a ^vix pop to clean up in my PA, but yeah, potentially very scary IMO.

The Euro is finished

I think you're correct - at least as we know it. What happens when you throw together 17 countries with different cultures, languages, and fiscal policies into a single monetary system? ... here you have it.

[Denny]

I know a guy in Cyprus. He can't even use his credit or debit card even though it is through US banks. Nobody wants anything except cash (for now).

He said whether the banks do have to levy a percentage or not, everybody is pulling their cash once they reopen.

[slow99]

I know a guy in Cyprus. He can't even use his credit or debit card even though it is through US banks. Nobody wants anything except cash (for now).

He said whether the banks do have to levy a percentage or not, everybody is pulling their cash once they reopen.

Yep, similar reports are rampant. Interesting (scary) times ... this weekend and early next week will be interesting.