A run on the banks has started in Cyprus

[bacpacker]

I can see that taking place in the not too distant future.

[prepguide]

It has been announced that Cyprus banks will be closed until Thursday while a decision is reached regarding the bailout. Bank holiday anyone?

[NWPilgrim]

The pitiful thing is, no matter how they end up stealing the private funds, the banks will keep on making the bad loans, buying the debt of a govt that will keep overspending. Six months from now they will be back for an even larger confiscation.

Homeowners, hide the livestock and womenfolk before it is too late.

[ladyhk13]

The vote from their Parlimont today decided not to do it.

[izzyscout21]

The vote from their Parlimont today decided not to do it.

that was probably a smart move on their part.

[greg48]

good read bacpacker! wonder how many in the US are moving funds as we speak?

[bacpacker]

Greg, my bet is several million in both Europe and the Americas already have or are making plans to.

Here is a follow up after last nights vote by the Cypriot government voting down the bailout/levy. The part I found very interesting was the German chancellor warning Cyprus not to enter talks with the Russians. I had been under the impression that the two had been working together on various issues over the past few years. Anyway, I guess we will see where all this goes. The banks in Cyprus are suppose to open up tomorrow, I just wonder how bad the rush on them will be? Here is the link to the story.

http://www.ifaonline.co.uk/ifaonline...n-bank-savings


Cyprus turns to Russia after parliament rejects levy on bank savings
Author: IFAonline
IFAonline | 20 Mar 2013 | 08:20

Cyprus turned to Russia for help on Tuesday night after the country's parliament overwhelmingly rejected a tax on the deposits of bank savers.

With protesters celebrating in the streets, the rejection of a draconian levy left a planned £8.5bn eurozone bail-out to save the Mediterranean island in chaos, according to the Telegraph.

The country's finance minister defied explicit warnings from Angela Merkel, the German chancellor, and left Cyprus for urgent talks in Russia.

Michael Sarris flew to Moscow to plead for aid, despite Merkel warning Cyprus not to enter into negotiations with Russia, raising the spectre of eurozone disintegration.

"The chancellor once again emphasised that the negotiations are to be conducted only with the troika (the European Union, European Central Bank and the International Monetary Fund)," said her spokesman.

Not a single Cypriot MP voted in favour of a eurozone rescue package that had been made conditional by Germany on the Cypriot government finding £5bn to pay off its debts by raiding bank deposits, including the savings of up to 60,000 Britons.

Under the original eurozone deal at the weekend, Cyprus agreed to impose a levy of 6.75% on bank accounts up to €100,000 (£85,000) and 9.9% for larger deposits.

Despite a compromise proposal not to tax any bank deposit less than €20,000 (£17,000), the country's 36 MPs rejected a deposit tax that has rattled financial markets and threatened the island's future as an offshore banking haven for Russian investors, with 19 MPs abstaining from the vote.

"There can only be one answer: no to blackmail," Yiannakis Omirou, the speaker of the Cypriot parliament said.

"This decision is no more than a raid on bank funds. Our demand must be that this deal must be renegotiated. If we pass this tax there will be no foreign investor who will keep their money here."

Read more: http://www.ifaonline.co.uk/ifaonline...#ixzz2O7F8Zqmy

[ladyhk13]

I can kind of see why they would run to Russia in such a panic considering Russia moves so much money (call it laundering or whatever you want) through their banks. Russia would have to be involved at some level or at least assured that their money won't be taxed I would think.

[bacpacker]

This is coming from my phone so I will only post the link. Apparently Russia has turned down the Cyprus government for any loans. According to this report the Russkies may be trying to bring down the Euro. At the least I feel like it bears keeping an eye on the situation.

http://www.reuters.com/article/2013/...92GO3120130322

I hope this link works. If not I will fix it tonight.

[Richarddbeck]

yet I think the damage is done. Who is going to trust the Cyprus banking system now? They just told the entire world they planed to steel their depositors money. lol It is my personal opinion that they have sealed their inevitable fate now. I believe the Cyprus banks will probaly fail anyways. Or they will print Euros which is the exact same thing as steeling the depositors money.... Money printing just steels the value of the asset instead of the physical asset.