Monday, March 18, 2013

What if your bank shut down, then gave 10% of your (and everyone's ) money to the government? This just happened in Europe


What if your bank shut down, then gave 10% of your (and everyone’s) money to the government? This just happened in Cyprus.
March 17, 2013
by Nick Sorrentino

Most Americans don’t know where Cyprus even is. But just know that this island nation has long been a  Mediterranean refuge from the cold for many Europeans. These same Europeans do a good bit of banking on the island also. Cyprus is kind of like the Bahamas for Brits and Germans.

On Saturday, as part of a bank bailout deal with the European Union the Cypriot government seized between 6.75% and 9.9% of the funds from every bank account on the island.

https://www.youtube.com/watch?feature=player_embedded&v=dXRgYeiPltI

Poof! Gone from your account and deposited somewhere back in Brussels. The banks shut their doors and then the EU just took the money. Banks won’t open again until Thursday.

As the attached article explains, this is a a game changer. Why would one hold one’s funds in a Greek, Italian, Spanish, or Portuguese bank with this precedent set? The answer is that one would be nuts to do so. Expect capital outflows (more than what we have seen) from the southern tier European states. Not what they need. Not what the world needs.

(From Tradingfloor.com)

I heard rumours about this when I visited Limassol last week, but dismissed them as completely outlandish. And yet, here we are. The consequences are unpredictable, but we are clearly looking at a significant paradigm shift.

This is a breach of fundamental property rights, dictated to a small country by foreign powers and it must make every bank depositor in Europe shiver. Although the representatives at the bailout press conference tried to present this as a one-off, they were not willing to rule out similar measures elsewhere – not that it would have mattered much as the trust is gone anyway.

Click here for the article.


http://www.againstcronycapitalism.org/2013/03/what-if-your-bank-shut-down-then-gave-10-of-your-and-everyones-money-to-the-government-this-just-happened-in-cyprus/

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