Cyprus government instigating a run on the banks and a collapse of their banking system

http://www.dailystar.com.lb/Business...#axzz2NjGTeqxx

Their government is raising a tax on savings accounts. So they don't have to cut pensions and salaries.

The average schmuck loses 6.75% of his saving account. Thats gotta suck!

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Originally Posted by BushMasterBoy

The average schmuck loses 6.75% of his saving account. Thats gotta suck!

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I thin you are not catching the implications. If your money is not safe from plunder in the bank what do you do? Pull the money from the bank. A run on the banks in Cyprus could cause a run on the banks in Europe. This would cause the whole European banking institution to collapse. With how linked all our multinational banks are the damage to our economy is potentially very high.

Could be worse then Y2K.

better get your funds secured...

Crap. This really could be bad.

Here comes the bank and bread lines... soviet style!

Just think about it. Wake up one day and the .Gov has just taken 6.75-9.9% of all the money in the banks. Pass a little law late on a weekend and BOOM, Instant $$$$

Declare some strange Emergency like the .gov is going to shut down and with the wave of the scepter take 6% of all the money in the banks. See, debt problem solved. Easy-Peasy for the king. Though it is 99.9% impossible here that .1% scares the crap out of me.

... and this is different from the Chicago Mercantile Exchange and SEC allowing Corzine's company to loot depositor accounts to pay off their bad gambles how? I'd love to be shocked at this but unfortunately, the US of A has already been there.

This is really bad. And if you are holding money in the bank you should re-think it. The depositors got fucked (6.75% to 9.99%) and the bondholders got made whole. Even though depositors rank ahead in law (yeah i know, like law matters)

It's not like they are paying you to keep it in the bank.

But it's ok, because something like this could never happen here.

Quote:

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Originally Posted by tmleadr03

I thin you are not catching the implications. If your money is not safe from plunder in the bank what do you do? Pull the money from the bank. A run on the banks in Cyprus could cause a run on the banks in Europe. This would cause the whole European banking institution to collapse. With how linked all our multinational banks are the damage to our economy is potentially very high.

Could be worse then Y2K.

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I would agree with this, if Draghi hadn't agreed to backstop euro-zone banks last year.