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People with Cyprus bank accounts will lose up to 10% of their savings as the price of a 10 billion euro (£8.6 billion) rescue package for the cash-strapped country from its European partners and the International Monetary Fund.
The bailout was agreed early on Saturday in a bid to keep the island nation from a bankruptcy that could rekindle the region's debt crisis.
Originally posted by stumason
reply to post by n00bUK
I will also point out that over 50% of the money held in savings accounts in Cyprus is from Russians, who the EU suspects are actually laundering money for criminal activities, so in order to get the bailout approved and this save everyone in Cyprus from going broke was to tax these "savers" and make them pay.
EDIT: How is it theft, exactly?
2 options on the table:
- Bailiut the banks, save them from collapsing and let everyone keep 90% of their money
- Let the banks fold and everyone loses 100% of their money
edit on 16/3/13 by stumason because: (no reason given)
Originally posted by stumason
reply to post by bigyin
They only "suspect", although I imagine they have some proof that some are dodgy accounts.
Either way, the rest of the EU didn't have to give Cyprus anything, they made mistakes with their investments.
The fact they are only losing 10% and not 100% of their savings is solely down to this bailout, so they Cypriots should count themselves lucky. Had the EU decided not to approve the loan, then the whole Cypriot economy would have folded without much drama in the rest of the EU given it's tiny size, it's not like this was critical in the same way Spain and Greece were.
Had the EU decided not to approve the loan, then the whole Cypriot economy would have folded without much drama in the rest of the EU given it's tiny size, it's not like this was critical in the same way Spain and Greece were.
Robert Peston. Business Editor
Cyprus may be one of the eurozone's tiniest economies - its third smallest - but for the next 48 hours or so, it may be the single currency area's most important.
The point is that there could be serious repercussions for other financially over-stretched economies, such as Spain's and Italy's, from the nature of Cyprus's 10bn-euro (£8.7bn) bailout - which includes, for the first time in any eurozone rescue, losses imposed directly on depositors in banks.
My Dear Extended Family,
Courtesy of KingWorldNews.com
Today legendary trader Jim Sinclair told King World News we have just witnessed one of the most important events in history and it will have a major impact on the gold market. Below Sinclair, who's father was business partners with legendary trader Jesse Livermore, had to say in this extraordinary and exclusive KWN interview:
"The wire reports on the Cyprus situation are working overtime to try to make the case that 80% of the deposits belong to the people of Cyprus, and only 20% of the deposits belong to the Russians. That's absolutely false. After 1985, when the 'Robber Barrons' of Russia took over the general economics of Russia, that was the transformation from the KGB to private business. The primary place for exported Russian funds was Cyprus.
Now, there is one leader in the world that would be very dangerous to challenge, and that is Putin of Russia....
"What's just happened is the IMF has backed up, lauded, supported, and publicized, as if it were a victory, the taking of 10% of what really turns out to be 80% of Russian 'black money.' Russian 'black money' is KGB money, now in business. The leader of Russia (Putin) was a former KGB official. Who's money do you think they have taken? This is the biggest mistake the IMF could possibly have ever made."
Eric King: "Jim, it's unimaginable to me, but, incredibly, just ten days ago you warned that you don't want to anger Russian leader Putin because he and Russia will punish the West in the gold market. Can you talk about how this is going to impact the gold market beginning on Monday?"
Originally posted by proximo
If there is a true bank run in other countries such as Spain or Italy over this, it really could be the spark that brings down the whole world economy.
If you think I am joking you don't understand how fragile the banking system is, because of the incredible levels of leverage and insane derivative bombs. Really all major banks are insolvent, without government coverups and handouts they would all be shut down.
This is just an incredibly stupid and arrogant thing to have done. This is so blatant even the dumb masses may be spurred to actual action. Probably not, seems 9 out of 10 will just lie down and take anything, but there has to be a breaking point somewhere.