Sunday, March 17, 2013

Cyprus Bailout: First Confiscation and “Corralito” in Eurozone





So bankers are being bailed out while the people of Cyprus (and thousands of expats) that worked hard, made sacrifices for years are left to pick up the tab.  If you saved over € 100.000, you get a 10% “tax” (some people in the streets of Cyprus are calling it stealing), if you have less than  €100.000, its  6.25%. Lets suppose you just got a loan for € 100.000 to start a new business, same thing happens, you lose 10% and still have to pay back in full.  Its noticeable how ordinary people that save money, try to invest or start a new business get punished while banks, and make no mistake the banks in Cyprus are branches of the exact same banks that are found in the rest of EU and USA, those get to steal people’s money.
Walk into a bank with a gun and demand money and you are a bank robber. Make a few phone calls and steal billions worth of people’s savings and you’re an Executive Board member.

How to Orchestrate Mass Theft:

The mechanism that takes place is the same one so often discussed here.

1)The measure is usually announced Saturday Morning. When people rush to those banks operating on Saturdays for a few hours, they find those branches conveniently closed. Oh, by the way, there’ just happens to be a Bank Holyday on Monday.

2)The limit on ATM is € 1000. Its not the banks fault if people empty those ATMs in a matter of minutes, or if they … “forgot”… to top up some ATMs the day before. Oops!

3) You cant use online banking and transfer your savings out of there.  For the thousands of ordinary people, and especially for many Russian millionaires and those in Greece that though of Cyprus as safe off shore banking safe haven for their savings, you’ve just been punk’d!

Cyprus, cash machines
A closed cooperative bank shop in Limassol, Cyprus.

19 comments:

Anonymous said...

I wonder if this makes you feel any differently about having moved into the Eurozone?

Anonymous said...

Not a good thing for the people of Cyprus -- but if the banks are all the same, how soon 'til something similar hits here? (In the US, I'm guessing they go after 401ks instead of savings accts -- they'll lump them them in with Social Security to "save" all of our pensions together. A haricut's a haircut. I loathe these guys.)

Greek Caste System said...

Eurozone is de facto dead.
1000 euros earned in Greece, is not of the same value as 1000 euros in Holland, because of the higher taxation in Greece.
1000 euros in a bank account in Cyprus now worth less that 1000 euros in a bank account in Germany.
You cannot have common currency without common taxation. You cannot have common taxation without common legislation. And you cannot have common legislation without common mentality of the people in euro-countries. Mentality differs and that's why I consider the midterm future of the euro unsure.

DB said...

They are doing a light-pole test. If no politicians end up swinging this test run can be expanded throughout Europe.

Maldek said...

There have been software updates in all EUR countries during the past 2 years that gave direct, centralized control to reek in money from bank accounts.

The tools are in place, now it is only a matter of time until they are put to use.

Zyprus is a test. If people do not withdraw lots of money on MO/TUE in germany, france and italy it will be considered a success.

As for the US. Watch closely how Mr. Obama mimics every move from Mr. Hollande (President of France) and than ask yourself if he too, is not in the need of money to fund big goverment? Only a matter of time...

Don Williams said...

1) I find the situation amusing --except for the little depositors being hurt.

Since the Russian Mafia probably stole most of the money from the Russian people that the Mafia deposited in the Cyprus banks, the Mafia has just fallen victim to a superior thief--government.

2) On the other hand, we may see an unusually high number of accidents befalling the politicans of Cyprus in the coming months.

3) And since Cyprus has been making money by helping foreign crooks steal from their native countries, my sympathy for the little people of Cyprus is limited as well. Lie down with dogs --you get fleas. It's that simple.

http://blogs.reuters.com/hugo-dixon/2013/03/18/cyprus-deposit-grab-sets-bad-precedent/

4) Although Cyprus is nothing in this regard compared to the City of London. And probably New York if the full truth was known.

Don Williams said...

See, e.g,
http://www.forbes.com/forbes/2006/0424/090.html

http://trueeconomics.blogspot.ie/2013/03/832013-cyprus-russian-bail-in-dilemma.html

Anonymous said...

Yes definitely a beta test for USA.

cryingfreeman said...

@ Anonymous #1: FerFAL doesn't live in the Eurozone; he's in Northern Ireland which is part of the UK and thus in the Sterling zone. I will go grey trying to explain that NI and the Republic of Ireland are NOT THE SAME COUNTRY.

gaga said...

Even man woman and child in Cyprus has an average of 70K euros in a the bank.

Or maybe the Cypriot banks just happen to be full of Russian Black money and EU tax payers object to bailing out Russian crooks.

FerFAL said...

Hi cryingfreeman! Hope you're doing well my friend.

Greek Caste System said...

@Don Williams
1)If Russian mafia deposited money that stole from the Russian people in Cyprus, there is nothing to blame Cypriot banks or Cypriot people.
2)What about money deposited in German, Swiss, Austrian, Luxemburgian, Liechtenstein or Isle of Man (UK), Virgin Islands (UK) banks???
All this money is "white"???
But all these countries are either friends of Germany or out of the reach of Germany, right???


Greek Caste System said...

@Don Williams
1)If Russian mafia deposited money that stole from the Russian people in Cyprus, there is nothing to blame Cypriot banks or Cypriot people.
2)What about money deposited in German, Swiss, Austrian, Luxemburgian, Liechtenstein or Isle of Man (UK), Virgin Islands (UK) banks???
All this money is "white"???
But all these countries are either friends of Germany or out of the reach of Germany, right???

Anonymous said...

Wow. We just started working on a cash stash. This is an unfortunate, but great motivation to keep prepping with a good supply of food and resources. Praying for the people of Cyprus.

cryingfreeman said...

@FerFAl, thanks amigo! Yes, I've been watching your videos on YouTube, great stuff. I'm ashamed my EDC is so poor... Must do something about it! Will be in touch soon!

Anonymous said...

A NYC businessman friend of mine from Malta knows Cyprus well and agrees with Don's #3. Not much going on there accept living off the corrupt system. Also not a major port at all and low tourism.

Don Williams said...

1) Re Greek Caste System's questions, a few points:
a) Cyprus is a tax haven --see

http://www.aristidou.com/2011/cyprus-tax-haven-arab-investors/

What is the phrase? A sunny place for shady people.

b) I hate tax havens because they let US oligarchs evade taxes and dump the federal debt burden onto the ordinary US citizen like myself. Google, for example, pays around 2.4 percent.

http://www.businessweek.com/magazine/content/10_44/b4201043146825.htm

c) Yet the Google billionaires are happy to enjoy the benefits of US citizenship --including having their persons and wealth protected by US military personnel putting their lives at risk.

I myself think the Google billionaires should be stripped of US citizenship and kicked out of the USA -- after first paying a 25% departure tax on their net wealth.

d) Of course, Google's whores in the US Congress would be the first to draft US citizens into combat if the wealth of US oligarchs was ever threatened by a foreign invader.

The common citizen can be called upon to sacrifice his life for his country -- but the Rich man can't be asked to pay the taxes that the rest of us pay.

Don Williams said...

1) In my opinion, only an idiot would take a Russian oligarch's money.

2) But only an idiot with a death wish would take the Russian money and then invest it in GREECE. ha ha

http://www.theatlantic.com/business/archive/2013/03/everything-you-need-to-know-about-the-cyprus-bank-disaster/274096/

3) Especially when the ensuing losses are a non-trivial percentage of Cyprus's entire GDP.

4) Looks to me like Merkel has already bailed out Cyprus once -- when she bailed out Greece and kept some of those investments of the Cyprus's banks from turning into total dreck.

5) She is even offering the bankrupt Cyprus bank's $13 Bil euros. No one is forcing them to take Germany's money. If they and the government of Cyprus don't like the terms, then let them walk away.

6) Only problem is , what do you tell the Russian depositors on Thursday when they want to withdraw their money?

7) Strange thing is -- there are all those fancy yachts in the marinas of Greece and Cyprus. Why isn't anyone taxing them?

Anonymous said...

Don Williams sure seems to like the notion of taxing people and taking their property.

The world ran fairly well before the West discovered "democracy" and people REALLY started trying to use the government to give them what they want and hand the bill to someone else.

Only morons don't see to where this must inevitably lead.