Wow. EU steals 10% of bank deposits in exchange for bailout

It is not just the South it is the East too.

 

consider it as if cyprus had their own currency. it is a 10% devaluation

 

Yeah it is no different to QE. It is no different to what they have been doing to us the last few years it just has a different name and is easier to notice.

 

There are rumours that Spain and Italy will be forced to do the same as Cyprus.

The problems for Cyprus started in 2008 with the bank crisis. They tried to avoid the strict rules from Europe by lending money in Russia. Because they are not able to pay back the Russian loan they are now back in the situation from 2008.
And now they are forced by Europe to take drastic action.

This will cause problems all over Europe, because banks are no safe place anymore for savings accounts.

 

I wonder if this will have an impact on precious metals prices.

 

http://bit.ly/ZIRbqZ

 

The title of this thread is not really accurate.

Correct one would be "EU refuses to fully bail out depositors in Cyprus banks"

Without the EU money, the banks would have folded, and with the banks being so large relative to the country itself, Cyprus would have been unable to fulfill its deposit insurance guarantee. Depositors would have lost 30 percent, likely more.

 

It is to be expected like I said.

http://www.huffingtonpost.co.uk/peter-morgan/eu-does-not-know-how-much-debt-it-is-in_b_2629126.html

 

EURUSD has dropped since the Fed began QE.

 

Be assured if US depositers woke up with a 10% haircut, there will be hell to pay.