Great example of how the people of freaking out
Best 2 mins of freaking out I’ve seen in a while!
This is insane
Osborne vows to protect Britain’s armed forces in Cyprus as cash machines are EMPTIED and 60,000 British savers face losing millions in 10% bank account tax
One furious customer reportedly parked his digger outside one such branch in the seaside resort of Limassol, claiming the government had “tricked” him into believing deposits were safe.
Cyprus – which accounts for just 0.2 per cent of the combined eurozone economy – is the fifth country to secure a debt rescue package from its eurozone partners in the three-year debt crisis.
Germany And IMF’s Initial Deposit Haircut Demand: 40% Of Total
Saxo Bank CEO: “This Is Full-Blown Socialism And I Still Can’t Believe It Happened”
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.
EURO ZONE ORDERS CYPRUS TO SEIZE 10% OF BANK ACCOUNTS
ATMs drained as bailout tax triggers run
Cyprus Banks may be Closed until wednesday or till the end of the week if necessary Fear of Bank Runs
There Is No Surer Way To Destroy A Banking System Than Giving Depositors A Haircut
No, not that kind of haircut.
I’m talking about the kind of haircut where depositors lose a portion of their money. This can destroy confidence in a fractional reserve banking system, as depositors in other banks and other countries fear that they too might be forced to take a haircut, leading to mass withdrawals, leading to illiquidity.
CONFISCATION: Panicked Europeans Rush ATMs as Leaders Move To Seize Funds Directly From Bank Account Holders
You read that right.
The European Union has made the determination that the people of Cyprus are now responsible for the hundreds of billions of dollars in bad bets made by their government and bank financiers, and they are moving to confiscate money directly from the bank accounts of every citizen in the country.
“Fear of a run on the banks: Cyprus government is the island’s banks also hold still closed on Tuesday to forestall a run on the banks. This Cypriot state radio reported after the end of a cabinet meeting in Nicosia on Sunday morning.
The government would close the bank if needed to be longer, there should be no decision in Parliament on the controversial special levy on all bank accounts of the island, the report said. On Monday, the banks are closed for a holiday. ”