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  1. 18 Mar '13 13:25
    The robbers say they will repay: Savers who lost money would be compensated by shares in commercial banks, with equity returns guaranteed by future revenues expected from natural gas discoveries

    http://www.reuters.com/article/2013/03/18/us-cyprus-parliament-idUSBRE92G03I20130318

    It is just being replaced by an IOU so they say it is fine, but the fear that this could spread has the potential to cause a massive run on banks. NBC's The Today Show didn't even cover the story when it should have been headline news. Perhaps the corporate news media does not want people to be concerned about it until they are forced to cover the story.

    How bad it this? How much confidence in banks will be eroded and how far will the fear spread?
  2. Donation rwingett
    Ming the Merciless
    18 Mar '13 13:41
    Originally posted by Metal Brain
    The robbers say they will repay: Savers who lost money would be compensated by shares in commercial banks, with equity returns guaranteed by future revenues expected from natural gas discoveries

    http://www.reuters.com/article/2013/03/18/us-cyprus-parliament-idUSBRE92G03I20130318

    It is just being replaced by an IOU so they say it is fine, but the fe ...[text shortened]... How bad it this? How much confidence in banks will be eroded and how far will the fear spread?
    It's all a scam to get the poor to pay for the misdeeds of the rich. That there is ANY confidence in commercial banks and their egregious thievery is a mystery.
  3. 18 Mar '13 13:46
    Originally posted by Metal Brain
    The robbers say they will repay: Savers who lost money would be compensated by shares in commercial banks, with equity returns guaranteed by future revenues expected from natural gas discoveries

    http://www.reuters.com/article/2013/03/18/us-cyprus-parliament-idUSBRE92G03I20130318

    It is just being replaced by an IOU so they say it is fine, but the fe ...[text shortened]... How bad it this? How much confidence in banks will be eroded and how far will the fear spread?
    I cannot imagine how this would not lead to bank runs. In fact, if this actually occurs I would imagine people would be more reluctant to put money in banks and new products that would not be subject to such a tax would become more attractive.
  4. 18 Mar '13 15:06
    Originally posted by rwingett
    It's all a scam to get the poor to pay for the misdeeds of the rich. That there is ANY confidence in commercial banks and their egregious thievery is a mystery.
    The "poor" have lots of savings in banks, correct.
  5. Donation rwingett
    Ming the Merciless
    18 Mar '13 15:19
    Originally posted by KazetNagorra
    The "poor" have lots of savings in banks, correct.
    Insert "middle class", "working class", or "99%" if you prefer any of those terms.
  6. 18 Mar '13 16:19
    When you spend more than you bring in, eventually you are going to fall.

    Europe is doomed to fall, the only question is will it be sooner or later. It now appears it might be sooner. Glad I sold, looks like good investment opportunities in a week or two.
  7. 18 Mar '13 16:26
    Originally posted by rwingett
    Insert "middle class", "working class", or "99%" if you prefer any of those terms.
    How about including "Russian oligarchs off-shoring ill gotten gains" in that list of the exploited.

    "The plan elicited an angry response from Russian President Vladimir Putin, whose nation’s oligarchs may have as much as $19 billion secretly deposited in Cyprus banks."

    Read more: http://www.foxnews.com/world/2013/03/18/cypriots-rush-to-pull-money-from-banks-as-eu-takes-aim-at-russian-deposits/#ixzz2NuRQHlKp
  8. Standard member sasquatch672
    Don't Like It Leave
    18 Mar '13 17:03
    Originally posted by Metal Brain
    The robbers say they will repay: Savers who lost money would be compensated by shares in commercial banks, with equity returns guaranteed by future revenues expected from natural gas discoveries

    http://www.reuters.com/article/2013/03/18/us-cyprus-parliament-idUSBRE92G03I20130318

    It is just being replaced by an IOU so they say it is fine, but the fe ...[text shortened]... How bad it this? How much confidence in banks will be eroded and how far will the fear spread?
    This is going to accelerate. This can get very bad, very quickly. Days, not weeks.
  9. Donation rwingett
    Ming the Merciless
    18 Mar '13 18:12
    Originally posted by JS357
    How about including "Russian oligarchs off-shoring ill gotten gains" in that list of the exploited.

    "The plan elicited an angry response from Russian President Vladimir Putin, whose nation’s oligarchs may have as much as $19 billion secretly deposited in Cyprus banks."

    Read more: http://www.foxnews.com/world/2013/03/18/cypriots-rush-to-pull-money-from-banks-as-eu-takes-aim-at-russian-deposits/#ixzz2NuRQHlKp
    Uh...no.
  10. 18 Mar '13 18:41
    Originally posted by rwingett
    It's all a scam to get the poor to pay for the misdeeds of the rich. That there is ANY confidence in commercial banks and their egregious thievery is a mystery.
    Its not a mystery at all. Its little different from the stock market in that if everybody seems to be in it, we feel safe, regardless of what logic tells us.
    Further, many people have to keep their money in banks whether they trust them or not, its a requirement for most of us in the modern world.
  11. Standard member DeepThought
    Losing the Thread
    18 Mar '13 18:48
    Originally posted by Metal Brain
    The robbers say they will repay: Savers who lost money would be compensated by shares in commercial banks, with equity returns guaranteed by future revenues expected from natural gas discoveries

    http://www.reuters.com/article/2013/03/18/us-cyprus-parliament-idUSBRE92G03I20130318

    It is just being replaced by an IOU so they say it is fine, but the fe ...[text shortened]... How bad it this? How much confidence in banks will be eroded and how far will the fear spread?
    It's bad for Crete as they will find it hard to attract foreign capital and depositors for years, it does the Eurozone no good as it's yet another bail-out which the rules for the Euro don't allow. The spread between PIIGS Euro denominated bonds and the Bund has widened, and Eire and especially Portugal don't need that at the moment. That Putin is complaining is natural enough, and he's right to. Depositors are being forced to do a cash for equity swap, and equity in the Bank of Epimenides isn't so great. It probably won't cause a run on any banks outside Crete though.
  12. 18 Mar '13 18:49 / 1 edit
    Originally posted by rwingett
    Uh...no.
    I suppose we do have to keep the exploiters and exploited sorted out.

    edit: adding

    http://business.financialpost.com/2013/03/18/welcome-to-cyprus-a-sunny-place-for-shady-people/
  13. Donation rwingett
    Ming the Merciless
    18 Mar '13 19:05 / 1 edit
    Originally posted by twhitehead
    Its not a mystery at all. Its little different from the stock market in that if everybody seems to be in it, we feel safe, regardless of what logic tells us.
    Further, many people have to keep their money in banks whether they trust them or not, its a requirement for most of us in the modern world.
    I don't know how it is in the rest of the world, but here you can put your money into a local credit union instead of one of the big commercial banks.
  14. 18 Mar '13 21:50
    Originally posted by JS357
    How about including "Russian oligarchs off-shoring ill gotten gains" in that list of the exploited.

    "The plan elicited an angry response from Russian President Vladimir Putin, whose nation’s oligarchs may have as much as $19 billion secretly deposited in Cyprus banks."

    Read more: http://www.foxnews.com/world/2013/03/18/cypriots-rush-to-pull-money-from-banks-as-eu-takes-aim-at-russian-deposits/#ixzz2NuRQHlKp
    Good point. Why is it that if some group which we happen to see as less than desirable get shafted, it is time to celebrate? Once the shafting starts, everyone is a target.
  15. 18 Mar '13 21:51
    Originally posted by rwingett
    I don't know how it is in the rest of the world, but here you can put your money into a local credit union instead of one of the big commercial banks.
    What do you think makes credit unions immune to whatever is infecting banks. From what I've heard, it is the government, not the banks that is ripping people off. Calling it a credit union is not going to stop a government.