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The Confiscatory Cyprus Bank Tax Idea Destroyed European Bank Confidence ???

Is This Theft?


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DaveFagan

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The Confiscatory Cyprus Bank Tax Idea Destroyed European Bank Confidence - Seeking Alpha

"In Cyprus, the ECB had forced a tax upon the bank deposits. The plan was to force Cyprus banks to exact a 9.9 percent tax on accounts with more than 100 thousand Euros and a 6.5 percent tax on accounts with less than 100 thousand Euros. Those latter accounts are protected by deposit insurance."

"But confidence is waning in the Eurozone, and if there could be a bank run in Cyprus, there could be one in Spain, Italy, etc. Contagion often starts with banks not trusting each other. The ECB had planned to use the 5 plus billion euros collected along with new loans to stabilized the nation's banks. Now it could be up to the Germans to bail out Cyprus, and if so, bigger demands could be forced upon the wealthy nations of Europe."

Isn't this theft?

Could it happen here?

Is the EUBank the same as the Federal Reserve?

Can Big Banking be trusted?

Is this a scheme to steal money from Russia?
 
It would most definitely be theft, and I have no doubt that it could happen under the right circumstances here in the United States. That's why I have little to no faith in the Government OR the Banks.
 
This action, once the fallout is factored in by the end of this week, will be another boost to unencumbered dollars flooding into the US stock market and to a lesser extent the Canadian stock market, particularly those companies with large stashes of cash on their books waiting for a better climate for business expansion.

US stocks could well reach into the upper teens and perhaps all the way to 20,000 - even with a drag in the White House, US markets and dollars will always be the safest haven in the world.
 
I thought European bank confidence was already destroyed.
 
This situation is just so ridiculously crappy for everybody, but particularly for residents of Cyprus that have done little, if anything, to warrant having their money taken.

Apparently, there's a lot of Russian money in Cyprus banks (it's kind of like the Caymen Islands of Russia's wealthy, from what I read), and if that's the target here I really don't see any reason to put up a blanket confiscation of money. If you want to stop Russians from using Cyprus banks to avoid...whatever...then change the policy for foreign depositors. But using the money of those who didn't create the problem as a means of leveraging a bailout...that's just screwed up.
 
It is no different than what the US did at the start of this financial crash.. push the burden of repair onto the public... The only difference is that in Cyprus they went directly for the bank books, where as in the US and elsewhere they did it by loading on debt on debt and creating deficits in the public sector and then crying "oh we must cut because we are spending too much"...

In the end it is the average Joe that pays and the ones who caused the problem are laughing all the way to the bank while living a life of luxury in tax haven some where.
 
The Confiscatory Cyprus Bank Tax Idea Destroyed European Bank Confidence - Seeking Alpha

"In Cyprus, the ECB had forced a tax upon the bank deposits. The plan was to force Cyprus banks to exact a 9.9 percent tax on accounts with more than 100 thousand Euros and a 6.5 percent tax on accounts with less than 100 thousand Euros. Those latter accounts are protected by deposit insurance."

"But confidence is waning in the Eurozone, and if there could be a bank run in Cyprus, there could be one in Spain, Italy, etc. Contagion often starts with banks not trusting each other. The ECB had planned to use the 5 plus billion euros collected along with new loans to stabilized the nation's banks. Now it could be up to the Germans to bail out Cyprus, and if so, bigger demands could be forced upon the wealthy nations of Europe."

Isn't this theft?

Could it happen here?

Is the EUBank the same as the Federal Reserve?

Can Big Banking be trusted?

Is this a scheme to steal money from Russia?

Yes, it's theft.

Yes, it will happen here (think of Cyprus as a trial balloon for the rest o Europe and then America).

I'm not certain about the eu bank, but I believe yes.

Yes, they can be trusted to take your money if "it's needed to save the economy".

Not sure about how Russia fits in.

What we see in this is step 3 in the "IMF riots"... The next step is the actual riots, destroying whatever is left of confidence, then the big money steps in and buys up the economy for pennies on the dollar. Finally the riots are suppressed and the people come to accept a lower standard of living, but they are happy because there is a semblance of a return to normalcy.
 
Yes, it's theft.

Yes, it will happen here (think of Cyprus as a trial balloon for the rest o Europe and then America).

I'm not certain about the eu bank, but I believe yes.

Yes, they can be trusted to take your money if "it's needed to save the economy".

Not sure about how Russia fits in.

What we see in this is step 3 in the "IMF riots"... The next step is the actual riots, destroying whatever is left of confidence, then the big money steps in and buys up the economy for pennies on the dollar. Finally the riots are suppressed and the people come to accept a lower standard of living, but they are happy because there is a semblance of a return to normalcy.

Russian gov't and businessmen have 5-10 billion Euros in Cypress Banks. A perfect target for a quick 10% theft. Gold is where you find it, eh?
 
The Confiscatory Cyprus Bank Tax Idea Destroyed European Bank Confidence - Seeking Alpha

"In Cyprus, the ECB had forced a tax upon the bank deposits. The plan was to force Cyprus banks to exact a 9.9 percent tax on accounts with more than 100 thousand Euros and a 6.5 percent tax on accounts with less than 100 thousand Euros. Those latter accounts are protected by deposit insurance."

"But confidence is waning in the Eurozone, and if there could be a bank run in Cyprus, there could be one in Spain, Italy, etc. Contagion often starts with banks not trusting each other. The ECB had planned to use the 5 plus billion euros collected along with new loans to stabilized the nation's banks. Now it could be up to the Germans to bail out Cyprus, and if so, bigger demands could be forced upon the wealthy nations of Europe."

Isn't this theft?

Could it happen here?

Is the EUBank the same as the Federal Reserve?

Can Big Banking be trusted?

Is this a scheme to steal money from Russia?


Yes its theft.I would be surprised if anyone in Cyprus kept their money in banks after this.
 
It is no different than what the US did at the start of this financial crash.. push the burden of repair onto the public... The only difference is that in Cyprus they went directly for the bank books, where as in the US and elsewhere they did it by loading on debt on debt and creating deficits in the public sector and then crying "oh we must cut because we are spending too much"...

In the end it is the average Joe that pays and the ones who caused the problem are laughing all the way to the bank while living a life of luxury in tax haven some where.


What you said is really true. We had our tax money confiscated and used to subsidize the "too big to fail" banksters. It was and is all very "hush hush." Nothing to see here; move on. We didn't even get a "thank you, mam." Just the ol' wham bam. Is OK. We'uns ignorant and ain't got no notion o' wha's happenin', eh?
 
Yes its theft.I would be surprised if anyone in Cyprus kept their money in banks after this.

I'm surprised anyone would keep any more money than necessary in the banks after this...

Then again, the mentality of "that could never happen here" will ensure that most lose out when it does happen here.
 
I'm surprised anyone would keep any more money than necessary in the banks after this...

Then again, the mentality of "that could never happen here" will ensure that most lose out when it does happen here.

I suspect that there will be a lot of stupid people in Cyprus who will think "Oh that couldn't happen here again".
 
This is extremely foolish in the long run and will harm every country in the EU.

CONFIDENCE in banks is critical to the banking industry and the economy.
 
http://www.nytimes.com/2013/03/22/opinion/krugman-treasure-island-trauma.html?hp&_r=0

"Why are Cypriot banks so big? Because the country is a tax haven where corporations and wealthy foreigners stash their money. Officially, 37 percent of the deposits in Cypriot banks come from nonresidents; the true number, once you take into account wealthy expatriates and people who are only nominally resident in Cyprus, is surely much higher. Basically, Cyprus is a place where people, especially but not only Russians, hide their wealth from both the taxmen and the regulators. Whatever gloss you put on it, it’s basically about money-laundering. "

This might clear up some of the machinations occuring in Cypress. I make note that Krugman is a co-author (Krugman-Wells) of my daughters Macro-Economics textbook. He may have some credibility.
Is it a nest of thieves on Cypress?
 
This is extremely foolish in the long run and will harm every country in the EU.

CONFIDENCE in banks is critical to the banking industry and the economy.

Again, search for "IMF riots"... They just finished step 2, next is the riots to kill whatever confidence remained... Then the economy gets bought up at fire sale prices, then things will go back to normal just with a much lower standard of living then before the theft.
 
If it's a tax haven to stash money, I can't understand why Cheney and Haliburton are not registered there. A great home for no-bid contract profits and the ilk. Who do you trust?
 
The most recent reports have Cyprus changing its' mind and charging accounts over 100,000 Euros a little 25% tax. Somebody gonna get shot in Cyprus. Tomorrow is supposed to be teh showdown. Should be fun to watch. Unfortunately, we know what rolls downhill and the Natives gonna get the weinie.
 
"Destroyed"? No. We haven't seen an EU-wide bank run.


"Damaged"? I can't imagine how one could argue anything but. The precedent is chilling.
 
"Destroyed"? No. We haven't seen an EU-wide bank run.


"Damaged"? I can't imagine how one could argue anything but. The precedent is chilling.

No no, banks would never take people's money... Not here at least. *sarcasm*
 
I've been reading about this again this a.m. and it reminds me of the defaults by Greek banks that weren't defaults, but writedowns where the owner of the note didn't get paid and couldn't collect on his Credit Default guarantees. The Eurobank and IMF talk about winding down the second largest bank in Cyprus and avoiding the word bankruptcy and I'm smelling some dead fish. Looks like another deal where CDSs owners get boned. Is it OK for the IMF and Eurobank to screw Russians out of Billions of dollars, or am I confused in this matter? Gonna be some nice fire sale buys on "Privatizations" and "who benefits?" Cypriots might pay attention here. Instant 900% tax on privatization buys.
 
This is a test from the multi-billionaires that run everything (banks) to see how much they can steal from those with just a little more than the poor working class. The rich lost some of their money and if we won't spend it they'll just take it. If this doesn't cause a ripple effect in the markets they'll do it again and again.
 
This is a test from the multi-billionaires that run everything (banks) to see how much they can steal from those with just a little more than the poor working class. The rich lost some of their money and if we won't spend it they'll just take it. If this doesn't cause a ripple effect in the markets they'll do it again and again.

Cypriot banks reopen after 12 days -- but customers can only withdraw $383 each - World News

"With just 860,000 people, Cyprus has about 68 billion euros in its banks - a vastly outsized financial system that attracted deposits from foreigners as an offshore haven but foundered after investments in neighboring Greece went sour."

"CNBC sources estimate those with more than 100,000 euros (about $128,000) in accounts in Laiki Bank could lose 40 to 70 percent of their deposits."

I had read elsewhere that deposits from Russians accounted for approximately $40 Billion, ergo the Russians are paying for a EuroBank bailout. It states that these large account holders will lose 40 to 70% of their investment, and be given bank stock or something. Isn't a theft of this magnitude a cause for war. When the US banks crashed in 2008, every traxpayer in the USA is still paying for those losses because the gov't, that's us, bailed them out. It may have saved the banking system, but it is screwing us and the "banksters" are still reaping the rewards. Does anyone anywhere still believe that big banks are anything but a "nest of thieves?" The USA citizens get screwed everyday, the Russians get screwed in Cyprus, and will the Chinese be the next to get screwed by some tricky default. Sounds like business per usual to me. What thinkest thou?
 
I couldn't have said this better or more accurately. It's a terrific read.

Banking with a gun to your head

Banking with a gun to your head - English pravda.ru

"How has it got to his - better still, where is it heading?! Well, firstly it has got to this simply by fiscal policy dictated by the Banksters - ooh, hang on; I can hear the economists and financial buffoons starting on their Keynesian Theory of economics and related theories. The theories are just that - theories, as logical and as true as the Domino Theory which held that if Vietnam fell to the communists, all of South East Asia, Australia and New Zealand would become Communist. The truth of the matter is simply there is no reason or justification for inflation - we are driven by debt and the manufacturing of wealth! All done by the Banksters. Secondly, we are heading to total control of your life by the Banksters - this will be modern Serfdom; you will be owned and controlled by the Banksters. Try living now without a bank - throw away your credit card, dump your EFPOS card, burn your cheque book and switch off internet banking - see how long you last! The Banksters want control of your wealth so that they can steal it - so that you need their loans, so that you need the Banks in order to survive. What amazes me is so many cannot see that.

Go back to the Cypriot disease. Supposedly, if we are to believe the official line, this problem was created by investors. Well, often the best lie contains an element of truth; and so it is here. The major investors in the failing Cypriot banks were overseas investors and they had pumped million of Euros into the banks. One could rightly argue that should strengthen the banks! But it appears that the majority of these overseas investors were Russians - ooh, here comes the evil Russians. Russians invested their money into the Cypriot banks because of the return that they got on their investment there - a better return than in other Euro Zone states. What the Banksters didn't like, was the Russians prospering on differential banking rates - rates that the Banksters hadn't controlled throughout the Euro Zone and so left this opportunity open for the Russian investors [and any other overseas investor willing to seize the opportunity]. Cyprus was doing very well on the back of overseas investment and was providing a standard of living, higher than other PIIGS Euro countries as a result. In line with the overall aim of the Banksters to reduce personal wealth, Cyprus had to be taught a lesson. This is as much to do with disciplining a nation as it has to do with fiscal policy. Then on the other hand, it allows the modern-day Hitler in Germany to punish Russian investors who had the audacity to prosper in the Euro Zone. Germany, indeed much of Europe, eyes with jaundiced eye, the growing Russian military and financial strength; they do not like being beholding to Russia at all and as Europe now is under the same control of the International Traveller and Banksters, they see that Russia must be brought in from the cold and under-heal.

The Banksters, by forcing a nation to accept terms whereby the country acts illegally; howbeit, retrospectively they justify their actions through passing law, are manipulating the domestic policies of a nation as well as influencing the greater world economy. [See what Medvedev had to say about the illegal tax to be placed on overseas investors]. When one invests, there are agreed terms and conditions applicable to that investment. One expects international law to dictate that those terms and conditions will be adhered too. Money is deposited under certain terms and if those terms are varied, the investor has the right to either withdraw his investment or continue investing. However, when Banks operate as a separate entity [under control of others], then the rule of law is illusionary. When Banks can close and deny access to your private money and can force a penalty tax for investing in the bank - then something seriously is wrong with the banking system. This is Banking with a gun to your head."
 
When the USA Major Media fail to cover a story of this magnitude, then an attempt is being made to contain the pertinent information. This banking scandal is "banking per usual" in the USA. The details need to be examined and publicized for the good of the citizenry. Why is this story being minimized in the Press?
 
Cypriot banks reopen after 12 days -- but customers can only withdraw $383 each - World News

"With just 860,000 people, Cyprus has about 68 billion euros in its banks - a vastly outsized financial system that attracted deposits from foreigners as an offshore haven but foundered after investments in neighboring Greece went sour."

"CNBC sources estimate those with more than 100,000 euros (about $128,000) in accounts in Laiki Bank could lose 40 to 70 percent of their deposits."

I had read elsewhere that deposits from Russians accounted for approximately $40 Billion, ergo the Russians are paying for a EuroBank bailout. It states that these large account holders will lose 40 to 70% of their investment, and be given bank stock or something. Isn't a theft of this magnitude a cause for war. When the US banks crashed in 2008, every traxpayer in the USA is still paying for those losses because the gov't, that's us, bailed them out. It may have saved the banking system, but it is screwing us and the "banksters" are still reaping the rewards. Does anyone anywhere still believe that big banks are anything but a "nest of thieves?" The USA citizens get screwed everyday, the Russians get screwed in Cyprus, and will the Chinese be the next to get screwed by some tricky default. Sounds like business per usual to me. What thinkest thou?

The gov in collusion with the corporate elite have figured out every way to entice people to spend and lose their money that's possible. Now that they can't get the savers to spend it all they're simply stealing it because they can. And it will continue till the masses rise up and raid their luxury homes and accounts, throwing the bums out of office and position. I hate to say it might come to this but I hope not. Greed is a powerful and blinding emotion. The elite think they're indispensable and that we the people are throw away trash.
 
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