Cyprus, Troika (ECB) Agree to Bail-in March 24, 2013

+Mods, if this has been reported before or is in the wrong forum, do your stuff.

Well, apparently Cyprus, after much arm-twisting, has agreed to a very messy deal hashed out between the European Central Bank, the president of Cyprus, and the IMF.

Cyprus, Troika Agree to Bail-in, Bank of Cyprus to See 40% Haircuts for Deposits Over €100,000, Deposits At Other Banks WILL BE WIPED OUT!

www.silverdoctors.com...-23838

According to this same article, a bomb has already been detonated at a bank at the Limassol branch of the Bank of Cyprus. Looks like people are getting pretty angry over this.

Per a Bloomberg report:

The agreement calls for Cyprus Popular Bank Pcl (CPB) to be shut down and split. The Bank of Cyprus Plc would take over the viable assets of the failed bank along with 9 billion euros in central bank-provided emergency liquidity aid, according to three EU officials who asked not to be named because talks are ongoing.

Deposits below the EU deposit-guarantee ceiling of 100,000 euros will be protected, and a loss of no more than 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said.

www.bloomberg.com...

Anyway you slice it, it is not a haircut, but outright theft. They deliberately closed the banks and didn't allow people to remove their money before they could steal it. Cyprus had to make a deal or the banks would be closed indefinitely.

This is the first domino. Expect others to follow in short order. Things might be getting dicey all over, so consider carefully if you want to leave a lot of money in your bank.

Video of the bomb attack of the bank there:

Great info! I also heard on the radio that people are now only allowed to withdraw up too 100 euros per day.

reply to post by ReleaseThePressure


Yes, they are limited withdrawls so that they can rip them off as much as possible. I fear bank runs due to contagion....and frankly, I don't blame the people. They didn't make the bank give risky loans which caused all this trouble, but now they're being made to pay for the bank's mistakes.

I'm suddenly wondering if my money is safe in my small regional bank here in the US......

Ironically they are trying to prevent a bank run over there, but the whole world (i hope) is watching.

Is it out there to see it as an attack on the middle class? They said under 100.000 euro accounts won't be affected under European principles but i'm not sure what or where to look for there. The really rich won't have their money there so to me that leaves the middle class.

Up to 40% of blood, sweat and tears down the drain is not a pretty picture to wake up to in the morning. I remember somebody pointing out how they always do this on the weekends then people get to wake up to what has been laid out for them.

reply to post by ReleaseThePressure


What they're really going after, besides the big fat accounts, are the "uninsured accounts". I had one of those before, it was a mutual fund account. They warn you can lose some or all of your principle and it is not insured through FDIC.

Sure enough, 9/11 happened and I lost the vast majority of it, as airlines were part of the investment portfolio.

Instead of losing it through market action, those poor souls are losing their life's savings through theft.

If this were an isolated incident, it would be worthy of only a footnote in modern history. But since Cyprus is part of the EU, expert more of this insanity in the next few months.

I also read somewhere on silverdoctors.com that banks in the US will cut back to only being open 2 days a week for 5 hours a day, minimum staff with a heavy security presence. This is reported to be occuring in the next 60 days Yikes!

reply to post by FissionSurplus

I'm suddenly wondering if my money is safe in my small regional bank here in the US......

The rumors around Russia is that it is not safe www.abovetopsecret.com...

There has been concern about a global bank run if the bank actions in Cyprus do go ahead. When comparing the risk of a government default to a bank run it is appearing that a bank run is the better of the two options and more manageable.

reply to post by kwakakev


Good point....and thanks for the link!

Strange times we're living in!

reply to post by FissionSurplus


Every month for the past 2 years I wonder if this is the last morgage payment I'm going to make.

Knew it was coming - but didn't know when. This could be it.

reply to post by FissionSurplus


This will get worse before it gets better...considering the news
that they are going to sacrifice a few banks.

Thinkin its not too late to shuffle down to the Gold and Silver Guy and buy some of his wares on my plastic bank card...
Should be an easier way to get the funds out of their hands......just a major purchase......

reply to post by Happy1


Could be.....but I read today that US banks are going to be more aggressive about downsizing their losses. Say, for instance, you have two residences, and one is paid for in full. The other, you have a mortgage on, and you default They will take both properties. I think in some states there is a "homestead exemption" to where you cannot have your primary residence taken from you if you default on a loan on another property. Hope those who could filed a homestead exemption!

It's seriously getting crazy

reply to post by burntheships


You are correct, burn....a whole lot worse. People are going to be very surprised at the theft and cold-bloodedness of the banks. They're also going to be surprised when our justice system turns its back and will not give us redress of our grievances.

reply to post by stirling


I LOVE that idea.....I would run my cards up buying gold and silver, and then default on paying them back...particularly if they start acting like our money is their money.....

I'm heading off to bed, gotta get up early when the market opens to do my daytrading gig.

I will respond to any and all posts when I wake up.

reply to post by FissionSurplus


Yep, and they have a good start on it. This is a pattern now,
in the U.S we have already sacrificed Bear Stearns, Lehman, and MFGlobal....

I predict there will be a number of alleged computer viruses/attacks/issues which will prevent people in Europe and the US from withdrawing their funds. Of course, the average person will never thinkt this might be to stop bank runs.

Either that or banks will close due to potential attacks.

Even if just 10 percent of people start to withdraw their funds, the banks will run out of cash.

As a side note, has anyone notice how positive the MSM is spinning this story. They are leading with "Cyprus is Saved" instead of "40% of deposits are lost".

I remeber this thread from January. There were unusally high withdrawls from banks in January. Perhaps some people knew this type of thing was coming:


US banks shaken by biggest deposit withdrawals since 9/11


www.abovetopsecret.com...

reply to post by FissionSurplus

Strange times we're living in!

Strange indeed...

$5.8 Billion is needed for Cyprus to get it's next $10 Billion bailout money.
$38 Billion is in accounts over $100 000 and looking at a 40% percent tax which will raise $15.2 Billion.
So what is planned for this extra $9.6 Billion?

Source: www.smh.com.au...

If anyone has more accurate figures on just what is going on please present them. Also, why would a government go get a $10 Billion loan when it has $15.2 Billion in its coffers? Are things in such a mess as basic mathematics has become too hard, or basic reporting just become too wrong? Is this like WTC7 and just the tip of something much more sinister or are things is such a shambles that the true state is a lot more complex and dire? So far it is not adding up.

reply to post by Daughter2


Thanks to the miracle that is fractional reserve banking, banks only have to have "a portion" of the money available for withdrawal. The rest is tied up with loans and risky debt.

I have also noticed the spin the MSM is putting on this. Like this haircut solves everything, and it's happy days are here again. Utter insanity. But that's how they operate.....act like these cracks in the dam are just an abberant blip, rather than indicative that the whole system is flawed and ready to give way at any moment.

Originally posted by kwakakev
reply to post by FissionSurplus

 

Strange times we're living in!

Strange indeed...

$5.8 Billion is needed for Cyprus to get it's next $10 Billion bailout money.
$38 Billion is in accounts over $100 000 and looking at a 40% percent tax which will raise $15.2 Billion.
So what is planned for this extra $9.6 Billion?

Source: www.smh.com.au...

If anyone has more accurate figures on just what is going on please present them. Also, why would a government go get a $10 Billion loan when it has $15.2 Billion in its coffers? Are things in such a mess as basic mathematics has become too hard, or basic reporting just become too wrong? Is this like WTC7 and just the tip of something much more sinister or are things is such a shambles that the true state is a lot more complex and dire? So far it is not adding up.

These are good questions. I cannot help but think that the $15.2 billion euros is to cover previous losses and perhaps interest on previous loans from the ECB. The $10 billion euro loan might be to run the government.

I will research this, but yes, the whole thing is just the tip of something entirely sinister and corrupt. Central banks have become wreckless gamblers who expect the innocent depositors to pony up the dough when they lose in the wall street casino. Governments are run on debt, and use more debt to get themselves out of previous debt. Banks play fast and loose, and then demand government money to keep them solvent.

The whole thing is unraveling. It is systemic, world-wide, and incredibly screwed up. This is the End Game.

However, I don't particularly see it happening in the US like in the Eurozone, as those sovereign governments don't have the money printing power like the US federal reserve does. For us, I see a currency crash......same thing as a haircut, only our money will not be worth diddly squat, so it's really the same thing in the end. Impoverishing the people, and the criminals who did this skate away unpunished.