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Cyprus puts levy on all savings accounts

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stormdog123
3/16/13 10:17 AM
http://www.bbc.co.uk/news/world-europe-21814325


People in Cyprus with less than 100,000 euros in their accounts will have to pay a one-time tax of 6.75%, Eurozone officials said. Those with greater sums will lose 9.9%. Cypriot bank officials quoted by AP news agency said depositors could access all of their money except the amount set by the levy.



I hope this is not the beginning of a trend. To wake up and discover that 9.9% of your savings are gone would devastate me.
WikiPost
3/16/13 10:18 AM
imbatman
3/16/13 10:38 AM
THe other one got locked. WHy is this getting red?
BEEFjerKAY
3/16/13 10:41 AM
imbatman said:   

THe other one got locked. WHy is this getting red?



Becuz that's what the red button is for.
HawkeyeNFO
3/16/13 10:45 AM
This is probably a small test run, before it is attempted on a larger scale, perhaps in Italy or Spain. A tax on wealth, which directly benefits the elite. If this goes down peacefully, we'll see it again.
BEEFjerKAY
3/16/13 10:47 AM
My response to a PM I received on why I gave this red ...

There's always some marginal country somewhere doing this kind of thing.

It's hardly news.

It's hardly meaningful.

It's hardly indicative of any kind of trend.

I'm willing to bet most folks who are scared by such news can't even find Cyprus on a map, much less understand any of the 50 years of history that have led to this recent announcement.

edit:
this is more of a statement on the financial state of Russian oligarchs than any thing else.

If I had to choose a macro global trend to be concerned about, it would be China.

Eurozone banking system is not at all similar to the US.
HawkeyeNFO
3/16/13 10:55 AM
BEEFjerKAY said:   

....There's always some marginal country somewhere doing this kind of thing.....It's hardly indicative of any kind of trend....



Not sure what you are trying to say, but if there's always some country doing this, that to me sounds like a trend. Agree that Cyprus is not a huge country or economy itself, but has this occurred in a eurozone country before? That to me is the telling piece of this. That the beneficiary is a central bank (and those who directly profit from that bank) located hundreds of miles away in a different country.
BEEFjerKAY
3/16/13 11:01 AM
HawkeyeNFO said:   

That the beneficiary is a central bank (and those who directly profit from that bank) located hundreds of miles away in a different country.



If you go back over the past 50 years, or at least past Bretton Wood and perhaps further, you will find that is almost always the case.

It worked the same way with the Weimar Republic.

I'd have to check, but I think the Medici operated in much the same way.

The real story is how Cyprus got co-opted by Russian mafia into the financial equivalent of a narco-state.
neophyte
3/16/13 11:03 AM
Come on, I posted the duplicate thread, but within 2 minutes...

Savers bear brunt of unprecedented Cyprus bailout


In a radical departure from previous aid packages - and one that gave rise to incredulity and anger across the country - euro zone finance ministers forced Cyprus' savers to pay up to 10 percent of their deposits to raise almost 6 billion euros....The deposit levy - set at 9.9 percent on bank deposits exceeding 100,000 euros and at 6.7 percent on anything below that - will take force on Tuesday after a bank holiday on Monday.


There's a lot of unique circumstances here related to Cyprus serving as off-shore for Russian money, but the fact remains a fact: at the whit of some bureaucrats money are being confiscated extra-judiciously.

I think it's a penny-wise solution, will cost European banking system dearly in the long run.

And yes, it gives an ammunition to FIAT critics and gold bugs
BEEFjerKAY
3/16/13 11:05 AM
neophyte said:   

And yes, it gives an ammunition to FIAT critics and gold bugs



You've really got to start reading the part of the news paper that displays the actual price of gold in <gasp> fiat currency.
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