What; you mean other than their disgraceful Director's fees?
Did anyone see 4 Corners the night before last?
That Rubin a-hole from Citibank was pulling down a lazy $115mill per year....
Cyprus raids banks accounts
- Thread starter joeExpat
- Start date
Did anyone see 4 Corners the night before last?
That Rubin a-hole from Citibank was pulling down a lazy $115mill per year....
That is what is happening in the USA now. Who is buying? They have posponed repayments for like 2 years with a higher interest kicking in afterwards.
quoted for truth and hopefully further discussion.
Cayman Islands to the USA is what Cyprus is to Russia.
They have delayed opening the banks now until next Tuesday...
"The people of Cyprus will have to wait until at least Tuesday of next week till their banks open. But there's a possibility they might not open at all, with warnings from Germany that Cypriot banks might become insolvent if the country can't negotiate a deal with the European Central Bank. And after a day of emergency talks between Cypriot parties and an approach to their benefactors in Russia, the country seems no closer to finding an alternative rescue deal after parliament rejected the EU's proposal."
http://www.abc.net.au/news/2013-03-21/cyprus-banks-delay-opening/4585476
"The people of Cyprus will have to wait until at least Tuesday of next week till their banks open. But there's a possibility they might not open at all, with warnings from Germany that Cypriot banks might become insolvent if the country can't negotiate a deal with the European Central Bank. And after a day of emergency talks between Cypriot parties and an approach to their benefactors in Russia, the country seems no closer to finding an alternative rescue deal after parliament rejected the EU's proposal."
http://www.abc.net.au/news/2013-03-21/cyprus-banks-delay-opening/4585476
how do you escape that? no money, no ability to buy food or fuel?
understand their plight but they better not come here - they're just economic refugees - it's not up to me to help them.
damn immigints.
understand their plight but they better not come here - they're just economic refugees - it's not up to me to help them.
damn immigints.
Scary stuff. Banks didn't open after the 1930 depression either.
This one event, really is a wild card. What happens when the GFC affects a country small enough to fail.
France, Italy, Greece et all are big enough to get out of any/the hole in time but Cypress. It is only 200km long x 100km wide, we are talking Hawaii only size!
A bank run (also known as a run on the bank) occurs in a fractional reserve banking system when a large number of customers withdraw their deposits from a financial institution at the same time and either demand cash or transfer those funds into government bonds or precious metals or a safer institution because they believe that the financial institution is, or might become, insolvent. As a bank run progresses, it generates its own momentum, in a kind of self-fulfilling prophecy (or positive feedback loop) – as more people withdraw their deposits, the likelihood of default increases, thus triggering further withdrawals. This can destabilize the bank to the point where it runs out of cash and thus faces sudden bankruptcy.[1]
If they leave EU then GREECE will be under pressure to do same and then ?????
I am glad I am in property and lower end.
Regards Peter
I think IF they reopen, it will be the end of the bank,
no matter what is decided by the government.
I'm just wondering what event will be the 'straw that breaks the camel's back'.
There is so much going on in the world, with so much debt.
Not only countries, but the personal debt levels.
I'm really concerned.
no matter what is decided by the government.
I'm just wondering what event will be the 'straw that breaks the camel's back'.
There is so much going on in the world, with so much debt.
Not only countries, but the personal debt levels.
I'm really concerned.
Read this extract on the Depression from the History Channel link and acknowledgement to:
http://www.history.com/topics/bank-run
The Great Depression in the United States began as an ordinary recession in the summer of 1929, but became increasingly worse over the latter part of that year, continuing until 1933. At its lowest point, industrial production in the United States had declined 47 percent, real gross domestic product (GDP) had fallen 30 percent and total unemployment reached as high as 20 percent.
In the wake of the stock market crash of October 1929, people were growing increasingly anxious about the security of their money. Wealthy people were pulling their investment assets out of the economy, and consumers overall were spending less and less money. Bankruptcies were becoming more common, and peoples' confidence in financial institutions such as banks was being rapidly eroded. Some 650 banks failed in 1929; the number would rise to more than 1,300 the following year.
The First Bank Runs
The first of four separate banking panics began in the fall of 1930, when a bank run in Nashville, Tennessee, kicked off a wave of similar incidents throughout the Southeast. During a bank run, a large number of depositors lose confidence in the security of their bank, leading them all to withdraw their funds at once. Banks typically hold only a fraction of deposits in cash at any one time, and lend out the rest to borrowers or purchase interest-bearing assets like government securities. During a bank run, a bank must quickly liquidate loans and sell its assets (often at rock-bottom prices) to come up with the necessary cash, and the losses they suffer can threaten the bank's solvency.
The bank runs of 1930 were followed by similar banking panics in the spring and fall of 1931 and the fall of 1932. In some instances, bank runs were started simply by rumors of a bank's inability or unwillingness to pay out funds. In December 1930, the New York Times reported that a small merchant in the Bronx went to a branch of the Bank of the United States and asked to sell his stock in the institution. When told the stock was a good investment and advised not to sell, he left the bank and began spreading rumors that the bank had refused to sell his stock. Within hours, a crowd had gathered outside the bank, and that afternoon between 2,500 and 3,500 depositors withdrew a total of $2 million in funds.
From Panic to Recovery
The last wave of bank runs continued through the winter of 1932 and into 1933. By that time, Democrat Franklin D. Roosevelt had won a landslide victory in the presidential election over the Republican incumbent, Herbert Hoover. Almost immediately after taking office in early March, Roosevelt declared a national "bank holiday," during which all banks would be closed until they were determined to be solvent through federal inspection. In combination with the bank holiday, Roosevelt called on Congress to come up with new emergency banking legislation to further aid the ailing financial institutions of America.
On March 12, 1933, Roosevelt gave the first of what would become known as the "fireside chats," or speeches broadcast over the radio in which he addressed the American people directly. In that first fireside chat, Roosevelt spoke of the bank crisis, explaining the logic behind his closing of all banks and stating that "Your government does not intend that the history of the past few years shall be repeated. We do not want and will not have another epidemic of bank failures." He reassured the nation that banks would be secure when they reopened, and that people could trust that they could use their money as they saw fit at any time. "I can assure you, my friends," Roosevelt intoned, "that it is safer to keep your money in a reopened bank than it is to keep it under the mattress."
Roosevelt's words and actions helped to begin the process of restoring public confidence, and when the banks reopened many depositors showed up ready to deposit their currency or gold, signaling the end of the nation's banking crisis.
But do we have a Roosevelt? Peter 14.7
it could be another 1907 Banker's Panic - I saw the similarities for this to occur a long while ago now.
We had a random event within a recession (failed attempt to corner a market) leads to a finance insolvency (knickerbocker trust insolvency) creating more than required widespread panic and bank runs (NYCH needed to step in to provide liquidity to end it, with JPM money).
We currently have in Cyprus...
- Random Event (10% tax on savings to allow a bailout)
- Recession (been hiding under a rock?)
- Financial Insolvency (no money to bailout banks)
- Run on banks - large banking collapse (playing out now)
- Leads to.....?
Yep - Fascism.
We had a random event within a recession (failed attempt to corner a market) leads to a finance insolvency (knickerbocker trust insolvency) creating more than required widespread panic and bank runs (NYCH needed to step in to provide liquidity to end it, with JPM money).
We currently have in Cyprus...
- Random Event (10% tax on savings to allow a bailout)
- Recession (been hiding under a rock?)
- Financial Insolvency (no money to bailout banks)
- Run on banks - large banking collapse (playing out now)
- Leads to.....?
Yep - Fascism.
New proposal.
Good Bank - Bad Bank split.
Under a proposal hammered out by Cypriot authorities and troika representatives, Cyprus’s second largest bank, Laiki may be closed and split into a “good” and “bad” bank.
The proposal could see Laiki’s “good” bank, comprising deposits of €100,000, merge with the country’s largest lender, Bank of Cyprus. The remaining, larger deposits would be hived off, leaving uninsured depositors facing potentially much larger write-downs than the 9.9 per cent levy proposed in the original EU-IMF deal proposed last Tuesday
Good Bank - Bad Bank split.
Under a proposal hammered out by Cypriot authorities and troika representatives, Cyprus’s second largest bank, Laiki may be closed and split into a “good” and “bad” bank.
The proposal could see Laiki’s “good” bank, comprising deposits of €100,000, merge with the country’s largest lender, Bank of Cyprus. The remaining, larger deposits would be hived off, leaving uninsured depositors facing potentially much larger write-downs than the 9.9 per cent levy proposed in the original EU-IMF deal proposed last Tuesday
One of my wealthy students just sold some land outside of Moscow for $13 million and the money for the sale was transferred to their account in Cyprus...It should have only been there for 2 weeks and the money should have been sent to Russia on Monday.. Talk about bad timing.. He will never use Cyprus again... Apparently Singapore and some other Asian countries will take its place according to him.
They will likely have to use capital controls in order to avoid the run collapsing their banks... limiting the size of withdrawals and transfers. We saw similar controls on some mortgage funds here in Australia when they got in trouble a few years ago.
Got back from SE Asia a couple weeks ago, was talking to some Aussie, Brits and euro expats, they were mentioning how a lot of them keep their funds in Cyprus. They're all 40/50 yr old retirees living off their spoils.
Ouch.
Singapore ? Out the pan & into the fire ?
http://www.zerohedge.com/news/2013-03-20/pop-quiz-answer-presenting-countries-x-and-y
FYI I was told by an educated friend that approximately.
For every man woman and child in Cyprus there is $80M in the bank.
For the same in Australia there is $100k.
If this you can see why they did this.
Now they are taking 40% of those above 100KEU it seems the locals are ok and the Russians are footing the bill.
Peter 14.7
For every man woman and child in Cyprus there is $80M in the bank.
For the same in Australia there is $100k.
If this you can see why they did this.
Now they are taking 40% of those above 100KEU it seems the locals are ok and the Russians are footing the bill.
Peter 14.7
except their primary industry is now gone never to come back.
It'll be interesting to see how the $80M "in the bank" number was worked out??
Specially when the banking industry was leveraged approx 8 times country's GDP...Similar threads
