T Nation

Cyprus Bailout with a Twist

So the tiny island seems “systemically relevant” enough to flush ten billion down the toilet.

But there’s more.
Privat account holders will have to bleed for their home, too.
Up to 10% of savings will be stolen collected to help the financially dazed island get back on its vodka-drunken feet.

http://www.businessinsider.com/cyprus-bailout-deal-2013-3

HEre is a link to the story.

This should end well, lol.

Jesus H, I hope Bam doesn’t read up on this.

Let’s all hope he does.
Tapping the vein directly is way better then letting it dribble from a thousand wounds for centuries, for so many reasons.

Saxo Bank CEO: “This Is Full-Blown Socialism And I Still Can’t Believe It Happened”
Submitted by Tyler Durden on 03/16/2013 15:59 -0400

European Union Eurozone Saxo Bank Switzerland

Authored by Lars Seier Christensen, CEO Saxo Bank; originally posted at his blog at TradingFloor.com,

It is difficult to describe the weekend bailout package to Cyprus in any other way. The confiscation of 6.75 percent of small depositors’ money and 9.9 percent of big depositors’ funds is without precedence that I can think of in a supposedly civilised and democratic society. But maybe the European Union (EU) is no longer a civilised democracy?

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. It is now difficult to expect any kind of limitation to what measures the Troika and EU might take when the crisis really starts to bite.

If you can do this once, you can do it again. if you can confiscate 10 percent of a bank customer’s money, you can confiscate 25, 50 or even 100 percent. I now believe we will see worse as the panic increases, with politicians desperately trying to keep the EUR alive.

Depositors in other prospective bailout countries must be running scared - is it safe to keep money in an Italian, Spanish or Greek bank any more? I dont know, must be the answer. Is it prudent to take the risk? You decide. I fear this will lead to massive capital outflows from weak Eurozone countries, just about the last thing they need right now. Even from the EU as a whole, I suspect, as the banking union is in place in most countries already.

Another open question is what will happen to the huge number of brokerages based in Cyprus? There is about 100 or more FX and other brokers currently operating under the relatively light Cypriot regulation. How will this impact the trustworthiness of these many small institutions? What IS the exact impact on the client deposits they might be holding in Cyprus? Will anyone dare to do business with them going forward?

This is a major, MAJOR game changer and the fallout will be with us for a long time to come. I believe it could be the beginning of the end for the Eurozone as this is an unbelievable blow to the already challenged trust that might be left among investors. Talk about a possible own goal.

Market reaction? it must be very good for gold - and for safe-haven countries like Switzerland, Singapore and economically more healthy non-Euro countries in, for example, Scandinavia. I would think the EUR and associated markets will be undermined by increasing lack of confidence when the full implications become clear for investors.

This is full-blown socialism and I still cannot believe this really happened.

Be careful out there…

[quote]Schwarzfahrer wrote:
Let’s all hope he does.
Tapping the vein directly is way better then letting it dribble from a thousand wounds for centuries, for so many reasons.[/quote]

asinine.

[quote]Schwarzfahrer wrote:
Let’s all hope he does.
Tapping the vein directly is way better then letting it dribble from a thousand wounds for centuries, for so many reasons.[/quote]

There is an article here in the LA Times about how the state’s tax revenue is down by 20% even while raising taxes on the rich.

You cannot tax people enough to pay for the amount of insane spending.

Idiot.
This is actually a way to end what you and your fellow idiots call “socialism”.

[quote]Schwarzfahrer wrote:
Idiot.
This is actually a way to end what you and your fellow idiots call “socialism”.[/quote]

This is idiocy on such a grand scale that I would not even know where to begin addressing it. Therefore, why don’t you begin by telling me how basically destroying property rights leads to the demise of socialism.

[quote]Schwarzfahrer wrote:
Idiot.
This is actually a way to end what you and your fellow idiots call “socialism”.[/quote]

Socialism has it’s own rate of decay, I see no reason to bring others down that sinking ship.

[quote]countingbeans wrote:
http://www.businessinsider.com/cyprus-bailout-deal-2013-3

HEre is a link to the story.

This should end well, lol.

Jesus H, I hope Bam doesn’t read up on this. [/quote]


!!!

!?!

WTF?!?!?!?!?!?! honestly. WTF!?!

How the hell can this be justified? Or even be remotely close to legal?

what difference does it make if they steal your money before it gets deposited into your bank account or after?

[quote]StevenF wrote:
what difference does it make if they steal your money before it gets deposited into your bank account or after? [/quote]

It doesn’t make any difference, because it wasn’t YOUR money to begin with.

The central banks issue fiat currencies that they allow you to use for transactions and paying your taxes.

They don’t actually “collect” anything through taxation, they are just recycling the currency they own out of private hands.

[quote]JEATON wrote:

[quote]Schwarzfahrer wrote:
Idiot.
This is actually a way to end what you and your fellow idiots call “socialism”.[/quote]

This is idiocy on such a grand scale that I would not even know where to begin addressing it. Therefore, why don’t you begin by telling me how basically destroying property rights leads to the demise of socialism. [/quote]

Lol@ property = money. So in your fantasy, banks are the property creating conjurers of our societies?
All hail the mighty Gandalf, capitalist extraordinaire!

Seriously, how can someone interested in property rights not love this news?
These lobsters, for once, FEEL the heat of theft.

I wonder how long your iraqi adventure would have lasted, if Bush would have had the balls to directly shave off money from his sheeple’s bank accounts?
“This week, we’ll have to take another x%, folks. Sorry, but the ‘F-26 Shittybird’ is an espensive jet, but you all know how strong the Taliban airforce is”

So yes, I rejoice when politicians, out of stupid reasons, no doubt, choose to not pickpocket the middleclass [exclusivly] indirectly [edit: with vague taxes and inflation].
Repeat this a few times and the show is over.

[quote]Schwarzfahrer wrote:

[quote]JEATON wrote:

[quote]Schwarzfahrer wrote:
Idiot.
This is actually a way to end what you and your fellow idiots call “socialism”.[/quote]

This is idiocy on such a grand scale that I would not even know where to begin addressing it. Therefore, why don’t you begin by telling me how basically destroying property rights leads to the demise of socialism. [/quote]

Lol@ property = money. So in your fantasy, banks are the property creating conjurers of our societies?
All hail the mighty Gandalf, capitalist extraordinaire!

Seriously, how can someone interested in property rights not love this news?
These lobsters, for once, FEEL the heat of theft.

I wonder how long your iraqi adventure would have lasted, if Bush would have had the balls to directly shave off money from his sheeple’s bank accounts?
“This week, we’ll have to take another x%, folks. Sorry, but the ‘F-26 Shittybird’ is an espensive jet, but you all know how strong the Taliban airforce is”

So yes, I rejoice when politicians, out of stupid reasons, no doubt, choose to not pickpocket the middleclass [exclusivly] indirectly [edit: with vague taxes and inflation].
Repeat this a few times and the show is over.
[/quote]

Where to begin.

Money is one of many examples of what ones property could consist of, halfwit. I can see your are struggling past this as you then begin spewing LOTR nonsense.

Lets just skip to the end bozo. They basically confiscated the property of productive savers and no one else. All the welfare hacks and the gimme gimmes remain unaffected. in fact, they are now probably as happy as a Schwarzfaher with a bag full of dicks because they see an avenue to stick ii to the “rich” while they keep their tickets on the gravy train

The government bureaucrats got their money to keep paying themselves and steering the Titanic. The least productive still get their free stuff. And the savers and productive get the bill.

And you think this is how you end Socialism.

Real socialism would simply nationalize the banks and say “GTFO or we will nuke you” to the main creditors.
Cyprus already had a wall. They would just have to rebuilt it a little.

[quote]TooHuman wrote:

[quote]StevenF wrote:
what difference does it make if they steal your money before it gets deposited into your bank account or after? [/quote]

It doesn’t make any difference, because it wasn’t YOUR money to begin with.

The central banks issue fiat currencies that they allow you to use for transactions and paying your taxes.

They don’t actually “collect” anything through taxation, they are just recycling the currency they own out of private hands.
[/quote]

I had a bank freeze all my accounts, brokerage accounts, and credit cards due to a mistake on there end. THEY deposited a measly 1000 bucks to my account by accident. It took a week to fix and I had to drive 2 hours to the original branch where the account was opened in 1994.

That was 2003. Ive had way too many instances of oops! your money’s gone. 2 weeks ago I deposited my pay cheque. It was there for an hour then it vanished until the next day. No record of the deposit. It literally vanished.

I’m out of the system as much as possible. Bullion, collectables, hard assets, and a little cash.

[quote]nsimmons wrote:

[quote]TooHuman wrote:

[quote]StevenF wrote:
what difference does it make if they steal your money before it gets deposited into your bank account or after? [/quote]

It doesn’t make any difference, because it wasn’t YOUR money to begin with.

The central banks issue fiat currencies that they allow you to use for transactions and paying your taxes.

They don’t actually “collect” anything through taxation, they are just recycling the currency they own out of private hands.
[/quote]

I had a bank freeze all my accounts, brokerage accounts, and credit cards due to a mistake on there end. THEY deposited a measly 1000 bucks to my account by accident. It took a week to fix and I had to drive 2 hours to the original branch where the account was opened in 1994.

That was 2003. Ive had way too many instances of oops! your money’s gone. 2 weeks ago I deposited my pay cheque. It was there for an hour then it vanished until the next day. No record of the deposit. It literally vanished.

I’m out of the system as much as possible. Bullion, collectables, hard assets, and a little cash.
[/quote]

Gerald Celente (love him or hate him) learned a real good lesson from the whole MF Global debacle where he lost hundreds of thousands of dollars with no chance of recovering it. “You don’t own your money unless you have it in your hands.” was the take away lesson from all that.