The Germans don’t want to leave the Euro. They want the peripheral countries to leave, one by one. This is the first salvo in that campaign: the tax on depositors is to be so outrageous and unfathomable (and politically difficult) that the country has no choice but to leave the euro.
I know they don’t, they’re mercantilists who mistake their use of an artificially weak currency as “efficiency” and “vorsprung durch technik”. This ignorance, combined with incessant paranoia of the hyperinflation phantom, are destroying the periphery; the solution for the Euro is to jettison the Germans.
If does not spark a bank run across Europe in the next couple of days , then nothing will .
Merkel does not want any bailouts before the September elections. Don’t forget there is precedent Argentina has already seized private pensions and the Irish government continues to raid private pension funds. The state will take whatever it wants to stay in power. Most of the bank runs in Europe have already happened, now if the Germans were to apply the same standards they demand of others to their own banks then the shit would hit the fan… I expect that the Irish state at some point will either compel your pension fund to buy Irish government bonds or convert your savings to bonds in order to fund yet another bailout.
The Deeper Meanings of Cyprus - Charles Hugh Smith -> oftwominds.com/blogmar13/cyprus3-13.html
The Botching of the Cyprus Bailout: Worse Than Lehman Brothers - Eamon Fingleton -> forbes.com/sites/eamonnfingl … -brothers/
The Cyprus Bank Bailout Could Be A Disastrous Precedent: They’re Reneging On Government Deposit Insurance - -> forbes.com/sites/timworstall … insurance/
videos Cyprus shellshocked as savings tax imposed for EU bailout: cash machines EMPTIED 60,000 British savers face losing MILLIONS EU bank Raid - -> countdowntozerotime.org/2013/03/ … -machines/
Cyprus’ savers bear brunt of unprecedented bailout - -> reuters.com/article/2013/03/ … 2220130316
Germany And IMF’s Initial Deposit Haircut Demand: 40% Of Total -> zerohedge.com/news/2013-03-1 … d-40-total
Cyprus bailout a major game changer - Lars Seier Christensen-> tradingfloor.com/posts/cypru … 1728597128
The Banking Panics in the United States in the 1930s: Some Lessons for Today -> www2.warwick.ac.uk/fac/soc/econo … _1930s.pdf
Bank of United States -> en.wikipedia.org/wiki/Bank_of_United_States
Treasury reassures British savers over funds held in Cypriot banks’ London branches - James Quinn -> telegraph.co.uk/finance/fina … nches.html
Cyprus bailout - Your stories - Jeremy Gahagan -> bbc.co.uk/news/world-europe-21812436
Gazprom Offers Cyprus Restructuring Deal to Avoid EU Bailout - -> greece.greekreporter.com/2013/03 … u-bailout/
Russian Navy to send permanent fleet to Mediterranean -> rt.com/news/fleet-mediterranean- … ships-390/
Tonnes of stuff in the media about this today. Most are in shock.
The background to this is the instance of germany/finland that 7bn should come from cypriot pockets
How it was done is was down to the cypriots
If the 7bn is not on the table the threat is virtually wiping out all deposits
The deal will not be the end of it for Cyprus. In 2 years time there will be another ‘bailout’ with further conviscation of deposits in what remains of the country.
The best article i could find is below
Megan Greene update -https://theprodigalgreek.wordpress.com/2013/03/18/cyprus-current-state-of-play/
The EU just made all guarantees expensive extravaganses
Was there ever a guarantee?
So THIS is it.
This is how the game ends. Stay tuned ladies and gentleman…we are about to witness extremely historic stuff unfold before our eyes.
What country are pinsters gonna move their money to?
I’m thinking Canada.
Good post from Joseph Cotterill on FTA - ftalphaville.ft.com/2013/03/18/1 … he-system/
You know back in September 2008 I here never believed Irish politicians when they warned us, “that the ATMS would have stopped working”, as a justification for their actions. From the last 72 hours I think it’s clear he real reason was they would have had to go rifling Irish deposit accounts for what they could get and until they had been satisfied, accounts would have been inoperable to the owners.
THis is the very scenario predicted by many here. You do not always get the time and place right…
Should we panic, probably not. Will people panic. Yes. Question should you panic now or panic later or where you an early panicked! Is it a panic bubble? Suffering financial panical fatigue… well the Irish probably are and too hungover to care right now as the rest of the world bolts upright for a collective awww WTF!?
"We believe investors should remain aware of the key differences in national resolution frameworks – noting the riskier frameworks in place in Switzerland, the UK, the Netherlands, and Germany’
I don’t know what “riskier frameworks in place in Switzerland” means, but here must be a basic risk in putting money into a country where you have neither citizenship or a vote. When push comes to shove, governments are accountable to their own electorates.
Wherever you put cash you face either FX risk or redenomination risk (from a Eurozone collapse), and then there’s the inflation risk.
An unintended consequence of all this is that people with cash will seek “safe” places to park it, including property.
Looks like the Assad regime in Syria will be a big beneficiary of this move.
The russians have the use of a port in Syria. If they are sending a permanent fleet to Mediterranean, they will do what it takes to keep Assad in power.
Basically, Cyrpus have cancelled the vote today because they know that the outcome with be a no vote.
Bank holiday tomorrow+ with vote any time between tomorrow and Friday.
The longer this goes on, without ATM access, the more likely some Cyrpus MPs will cave and vote yes.
High stakes game being played.
A Bank holiday week! I was joking about this last night…
Financial Franz Ferdinand I hope not!
IT headlines today,