What's The Betting On A Eurozone Wide Banking Crash By Friday?

[hboy]

Europe Announces Stunning Bailout For Cyprus — Bank Depositors To Get Instant 10% Tax Before Banks Reopen This Week

 

Whilst this is nothing less than the state stealing money off hundreds of thousands of dodgy Russian depositors who have more cash sat in Cypriot banks than Cypriots themselves, it really sends a bad message out across the Eurozone that if you have too much money in the bank and things get worse the EU will nick it:

 

http://www.bbc.co.uk...siness-21812853

 

http://www.businessi...out-deal-2013-3

 

You can almost see huge withdrawals this week across all the weaker Eurozone banks that might serious affect already weak solvency. In fact this might actually force cash back out to places like here as people empty out domestic accounts and aren't too bothered about depositor protection schemes if the state is going to steal 10% of your money anyway.

 

This seems to be the most mental way ever to create stability - steal money off people with money in banks.

 

Edited to add:

 

This is also a state tax on 'hot money' if what the politicians are saying to deflect from the argument. Its ok to have hot Russian money in the banking system as long as you pay the EU 10% to clear it for you. Two truly appalling political messages!

[Lxxx]

Bankrupt Cyprus imposes a bank account levy of 9.9% on all accounts over 100,000 Euro's

 

Whilst this is nothing less than the state stealing money off hundreds of thousands of dodgy Russian depositors who have more cash sat in Cypriot banks than Cypriots themselves, it really sends a bad message out across the Eurozone that if you have too much money in the bank and things get worse the EU will nick it:

 

http://www.bbc.co.uk...siness-21812853

 

You can almost see huge withdrawals this week across all the weaker Eurozone banks that might serious affect already weak solvency. In fact this might actually force cash back out to places like here as people empty out domestic accounts and aren't too bothered about depositor protection schemes if the state is going to steal 10% of your money anyway.

 

This seems to be the most mental way ever to create stability - steal money off people with money in banks.

 

Edited to add:

 

This is also a state tax on 'hot money' if what the politicians are saying to deflect from the argument. Its ok to have hot Russian money in the banking system as long as you pay the EU 10% to clear it for you. Two truly appalling political messages!

 

I wondered how long it would it take before the holy grail of bank deposits was breached. You think this is the first and last time it'll happen?? If I was Italian/Greek/Spanish/Portuguese et al, on Monday morning I'd be ringing in sick and spending the day at the bank and seeing about diverting my cash elsewhere. Bet Fast Eddie will have Athol Street on speed dial Monday morning!

[hboy]

Its absolute madness that could bring the system down. I appreciate that they basically want to steal money off Russians who have flooded cash into Cypriot banks but the message it sends to the average Joe depositor across Europe is potentially devastating.

[Lxxx]

Its absolute madness that could bring the system down. I appreciate that they basically want to steal money off Russians who have flooded cash into Cypriot banks but the message it sends to the average Joe depositor across Europe is potentially devastating.

 

I see the Cypriot Finance Minister has been summoned to Moscow. Think it'll be a one way ticket? Faulty plane maybe? Cyprus turned down a Russian bailout in favour of an EUSSR one. There will be some very pissed off oligarchs and mafiosi wanting some form of revenge. Who supplies the majority of europe's gas?

[cheesypeas]

There was a post in here somewhere about six months ago detailing how the UK banks would do the very same thing.

I understand that regulation in the UK is somewhat different to that of Cyprus. But is it possible that UK PLC could rob the accounts in the same way ?

[cheesypeas]

Its absolute madness that could bring the system down. I appreciate that they basically want to steal money off Russians who have flooded cash into Cypriot banks but the message it sends to the average Joe depositor across Europe is potentially devastating.

 

I see the Cypriot Finance Minister has been summoned to Moscow. Think it'll be a one way ticket? Faulty plane maybe? There will be some very pissed off oligarchs and mafiosi wanting some form of revenge. Who supplies the majority of europe's gas?

Let's not forget that the Cypriot leader was educated where? - Moscow. There's a shock.

[Tugger]

If they hadn't stepped in, the depositors would have got nothing. So it's less theft in my view, than just a smaller handout.

 

Cyprus pisses the EU off too much by being a tax haven for Russians

[Lxxx]

There was a post in here somewhere about six months ago detailing how the UK banks would do the very same thing.

I understand that regulation in the UK is somewhat different to that of Cyprus. But is it possible that UK PLC could rob the accounts in the same way ?

 

UK Plc reserves the right to do whatever it wants in a 'national crisis.' A banking meltdown would constitute such a crisis, real or otherwise.

[Lxxx]

If they hadn't stepped in, the depositors would have got nothing. So it's less theft in my view, than just a smaller handout.

 

Cyprus pisses the EU off too much by being a tax haven for Russians

 

Seems like the EU don't like tax havens do they. When's it the island's turn to get shafted?

[hboy]

Its absolute madness that could bring the system down. I appreciate that they basically want to steal money off Russians who have flooded cash into Cypriot banks but the message it sends to the average Joe depositor across Europe is potentially devastating.

 

I see the Cypriot Finance Minister has been summoned to Moscow. Think it'll be a one way ticket? Faulty plane maybe? Cyprus turned down a Russian bailout in favour of an EUSSR one. There will be some very pissed off oligarchs and mafiosi wanting some form of revenge. Who supplies the majority of europe's gas?

 

Bet he's shitting a brick - I'd be making sure I went on a commercial airliner with 300 other people. Not that this would guarantee you much. He's fucked.

[Thomas Jefferson]

Seems like the EU don't like tax havens do they. When's it the island's turn to get shafted?

 

 

It's not that they don't like tax havens, it's that they don't like competitor tax havens.

[oldmanxfella]

 

This seems to be the most mental way ever to create stability - steal money off people with money in banks.

 

 

I would agree that this is mental and will likely lead millions of people to take money out of the banks. It seems the most crackpot decision ever - your bank fucked up so we'll steal 10% of what you have in the bank to pay for it.

[thebees]

Best topic title since the one that caused all that bother with yer man.

[P.K.]

There is a side of the argument that runs "What are you actually doing when you deposit your cash in a bank?"

 

The answer is that you are "investing" in that bank to use your money wisely and make more money with it that you receive as interest.

 

So the next question is then "What happens if they don't use it wisely?"

 

The answer is that you could pay for your very poor judgement in choosing them by losing 6.7% to 9.9% of the money you invested in them.

 

However your cash has to go SOMEWHERE so unless it's in gold or in a sock under the bed or whatever it's likely to just end up in another bank.

 

In a way I think it's good news as it's a sort-of indicator that the Euro is more stable now than it has been for a while. Otherwise they just wouldn't have risked this heavy-handed approach.

[Tugger]

I'm not sure I see this as the scandal it is being painted to be. In essence, the EU has just agreed to bail the banks out, but not to the full extent of their liabilities. Depositors are still doing better than they would without a bail out, so it's not theft, it's a gift, just a smaller one than they would like. As with KSFIOM depositors, unless there is an express guarantee of a bank's liabilities, you are not entitled to think you will get it all back if it goes bust.

 

That said, I do not know whether there was some express national or supranational guarantee in place. If so, my view would alter