Europe: Taxing Savers to Fund Cypriot Bailouts

[Kirk Freeman]

Out of the pages of an L. Neil Smith novel, taxes by fiat, frozen assets, bank "holidays", theft of the assets of the saving and producing class and bank runs.

Coming to a country near you.

Europe Does It Again: Cyprus Depositor Haircut "Bailout" Turns Into Saver "Panic", Frozen Assets, Bank Runs, Broken ATMs | Zero Hedge

 

[dross]

Why should some people get to hoard all that money when others need it more?

 

[zippy23]

wow, charging people who deposit money 6.75%?? my goodness, the good people get screwed while the cheaters get away with millions. so sad, cant wait for the gov't to take over 401k's and steal our interest as they are planning to do. awesome

 

[tirebay1997]

Nice to see some ZeroHedge stuff on INGO. This is something everyone should think about. If you don't have posession of it, you don't own it.

 

[mrjarrell]

Read this earlier on the BBC. What a bloody shame. Can't wait to see Russia's reaction, considering the number of Russians who have funds in those Cypriot banks. This could easily happen here, too. Don't think it couldn't. US banks are heavily in bed with government and already do their bidding on any number of levels. Something like this, or worse, could happen overnight here. Let's just hope that this doesn't give any of the usual suspects any ideas.

 

[EvilBlackGun]

My Leo wife is an Ifrish FRed-head ...

... and thought I was NUTZ for following the Birch Society, Glenn, Rush, and many Conservative newsletters. But she loves CBS news. All of a sudden, last year she saw how most of the "News" she watched was exactly what I had been remarking on, only a week or a month earlier. It really sank in when Euro-zone politics began following my same opinions. (I NEVER 'tell' her what to do, you understand ... I CAN'T!) Just this last Tuesday she changed her 401k over to tangible asset Gold! I did not tell her to !! I just happy that she swapped. All my assets are "machined steel," lead/brass, and silver. Nows it's time to just hide and watch.

Read this earlier on the BBC. What a bloody shame. Can't wait to see Russia's reaction, considering the number of Russians who have funds in those Cypriot banks. This could easily happen here, too. Don't think it couldn't. US banks are heavily in bed with government and already do their bidding on any number of levels. Something like this, or worse, could happen overnight here. Let's just hope that this doesn't give any of the usual suspects any ideas.

 

[tirebay1997]

Our own Attorney General has stated that our banks are already too big to prosecute for wrongdoing. It reminds me of something Henry Ford once said about how banks operate.

 

[Degtyaryov]

Time for a good old fashioned bank run.

 

[ZombieApocolypse]

Read this earlier on the BBC. What a bloody shame. Can't wait to see Russia's reaction, considering the number of Russians who have funds in those Cypriot banks. This could easily happen here, too. Don't think it couldn't. US banks are heavily in bed with government and already do their bidding on any number of levels. Something like this, or worse, could happen overnight here. Let's just hope that this doesn't give any of the usual suspects any ideas.

Lookike Putin thinks this will be "unfair" and "dangerous"


'Unfair, Dangerous' Cyprus Deal Whacks Rich Russians

 

[smokingman]

EU wide bank run in 3...2....

When your deposits can be taken at the whim of a distant banker would you leave anything in a bank?


Cypriot Outrage Over Tax Could Derail Euro-Area Bailout - Bloomberg

 

[OneShotFOGE]

Well, this is why you want to diversify. Have some money invested in stocks, or gold or what ever. Lead? One of my recent investments mostly due to my newfound hobby. I think this will encourage a lot of people to move money around, to different investments.

Might have an adverse effect on the economy though as it will make it more challenging for people/ businesses to get loans with the sure to come withdrawal on the banks.

 

[rvb]

I've said for 10 years that'll be the next thing to happen here once they've pushed the big earners to their "fair share" on income. Only I don't think here they'll start w/ bank savings as that's too obvious... I think it'll start w/ 401ks and other investments. Most folks later in life may have hundreds of thousands in retirement and 401ks but only a few thousand in the bank. And current rules prevent you from donig a run on your 401k vs a bank where you can pull it all out and put it under the matress.... makes for a captive pool to drain from.

-rvb

 

[OneShotFOGE]

I've said for 10 years that'll be the next thing to happen here once they've pushed the big earners to their "fair share" on income. Only I don't think here they'll start w/ bank savings as that's too obvious... I think it'll start w/ 401ks and other investments. Most folks later in life may have hundreds of thousands in retirement and 401ks but only a few thousand in the bank. And current rules prevent you from donig a run on your 401k vs a bank where you can pull it all out and put it under the matress.... makes for a captive pool to drain from.

-rvb

I agree. Saving accounts are too obvious in America. Plus, so many people dont have savings anymore. The economy has taken its toll on people and so many are living in debt. I think 401ks are a good possibility and perhaps even more likely is Social Security. Which is projected to run out of money by 2033.

 

[lucky4034]

... and thought I was NUTZ for following the Birch Society, Glenn, Rush, and many Conservative newsletters. But she loves CBS news. All of a sudden, last year she saw how most of the "News" she watched was exactly what I had been remarking on, only a week or a month earlier. It really sank in when Euro-zone politics began following my same opinions. (I NEVER 'tell' her what to do, you understand ... I CAN'T!) Just this last Tuesday she changed her 401k over to tangible asset Gold! I did not tell her to !! I just happy that she swapped. All my assets are "machined steel," lead/brass, and silver. Nows it's time to just hide and watch.

Smart man... I've been trying to get my parents to do the same thing.

 

[smokingman]

I agree. Saving accounts are too obvious in America. Plus, so many people dont have savings anymore. The economy has taken its toll on people and so many are living in debt. I think 401ks are a good possibility and perhaps even more likely is Social Security. Which is projected to run out of money by 2033.

There is no way Social Security lasts until 2033.Have you looked at the CBO projections? What is the only investment the social security trust can make?US Treasury notes,by law.
With the Federal Reserve holding rates near 0 and a 10 year note earning less than 2% interest,the CBO estimates using historic averages of 5.8%....see the problem? ZIRP is killing social security MUCH faster than anyone thought possible.It will be done long before 2033.With current interest rates on treasuries it will be lucky to stay funded until 2020.

 

[OneShotFOGE]

There is no way Social Security lasts until 2033.Have you looked at the CBO projections? What is the only investment the social security trust can make?US Treasury notes,by law.
With the Federal Reserve holding rates near 0 and a 10 year note earning less than 2% interest,the CBO estimates using historic averages of 5.8%....see the problem? ZIRP is killing social security MUCH faster than anyone thought possible.It will be done long before 2033.With current interest rates on treasuries it will be lucky to stay funded until 2020.

I wont argue that. I just googled the year a moment ago. I dont put any stock in that particular year. The point is that Social Security is unsustainable. And we will see a change in some fashion or another, or Social Security will simply stop paying out money.

 

[2ADMNLOVER]

Umm , so how does this effect amerikan idiot or x factor ?

Seriously , that's the only way to get the obummer supporters to understand how much of a mess we're collectively in .

 

[smokingman]

From Lehman to Cyprus - NYTimes.com

The European decision not to honor deposit insurance in Cyprus, by making all depositors contribute to the cost of a bailout, reminds me of the decision to let Lehman Brothers go under. Moral hazard is being avoided. The question is what that will cost.

But Europe should have learned from Britain’s fiasco at Northern Rock that deposit insurance matters, particularly for relatively small accounts. If they can wipe out such insurance in Cyprus, why not Spain? Or Italy? Or even France?

There is a risk that a lot of money will flow out of troubled countries’ banks. Those flows had started to reverse last year, after the European Central Bank stepped up to print money and reassure investors in government bonds. Now, there is every reason for depositors to seek out banks in the safest countries

 

[zippy23]

Why arent the people rioting in the streets and using their guns to take action......ohh ohh my bad, it slipped my mind they are liberals and basically have no protection from their own gov't. so sad, and by the way, this WILL happen here, its only a matter of time, we are bankrupt and they will take the money when they need it, they have already admitted they will go after 401k's. oh its gonna be ugly

 

[mrjarrell]

It just got worse. Their bailout has gotten even bigger now and they're going to have to scramble to come up with their share of it. Yikes!

BBC News - Cost of Cyprus bailout 'rises to 23bn euros'