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Depositors Could Face 80% Cut in Cyprus
serf
Member Posts: 9,217 ✭✭✭✭
Also Canada writing ambiguous policies on Bank law for unknown seizures of funds?
serf
Canada Includes Depositor Haircut Bail-In Provision
http://www.silverdoctors.com/canada-includes-bail-in-provision-for-systemically-important-banks-in-2013-budget/
http://www.foxbusiness.com/news/2013/03/26/cyprus-finance-minister-uninsured-laiki-depositors-could-face-80-haircut/
Realistically, very little will be returned," Mr. Sarris said.
Asked if, like in other bank closures, it could take six to seven years before depositors get back there money, he said: "maybe yes. And the amount [returned], could be 20%. Certainly, for depositors above 100,000 euros it could be a very significant blow."
serf
Canada Includes Depositor Haircut Bail-In Provision
http://www.silverdoctors.com/canada-includes-bail-in-provision-for-systemically-important-banks-in-2013-budget/
http://www.foxbusiness.com/news/2013/03/26/cyprus-finance-minister-uninsured-laiki-depositors-could-face-80-haircut/
Realistically, very little will be returned," Mr. Sarris said.
Asked if, like in other bank closures, it could take six to seven years before depositors get back there money, he said: "maybe yes. And the amount [returned], could be 20%. Certainly, for depositors above 100,000 euros it could be a very significant blow."
Comments
serf
quote:Originally posted by bigcitybill
What do you suggest we do?
Of course, gold is such a wonderful investment as it's only down 3.93% in the last physical year.
http://www.kitco.com/charts/popup/au0365nyb.html
The key word in the second story is "uninsured." It is very important to make sure your banking institution has FDIC, FSLIC or NCUSIF insurance and to keep your balances below the limits.
Other than that, my best recommendation is to memorize the lyrics to the Beatles "Taxman"
Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman
Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman
If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.
Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman
Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me.
The first story looses a bit a credibility with me as it ends with the following: "Confiscating wealth from depositors will reduce risks for taxpayers??? Only those with 100% of their assets in physical gold and silver, or those Canadian depositors who are somehow not also taxpayers perhaps!" Conveniently, there are several adds for precious metals and the site is even called "Silver Doctors."
Of course, gold is such a wonderful investment as it's only down 3.93% in the last physical year.
http://www.kitco.com/charts/popup/au0365nyb.html
The key word in the second story is "uninsured." It is very important to make sure your banking institution has FDIC, FSLIC or NCUSIF insurance and to keep your balances below the limits.
Other than that, my best recommendation is to memorize the lyrics to the Beatles "Taxman"
Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman
Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman
If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.
Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman
Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me.
Take the gold or silver gimmick sales pitch out the equation and see what are the lawmakers are trying to enforce in times of banks become insolvent due to derivatives unwinding in the world market places.
serf
By the way intrinsic commodities have more value than fiat money with fractional banking with derivatives when and if it unwinds quickly!Think Cyprus and 80% of Fraud taking! Duh?
Other than that I question your ability to think critically.
Buy storable food.Hunger is the one thing that drives people to break the rules of law faster than anything imaginable.No doubt it will be used ruthlessly to take god given rights away from you.With no one to blame it on but fanatical hordes of lawbreakers and surely not the legally elected henchmen in charge at the time.[}:)]
serf
So, since Cyprus is in financial ruin, we should buy non-perishable food, because it's a certainty that we will be set upon by zombies.
Now it all makes sense.
quote:Originally posted by serf
Buy storable food.Hunger is the one thing that drives people to break the rules of law faster than anything imaginable.No doubt it will be used ruthlessly to take god given rights away from you.With no one to blame it on but fanatical hordes of lawbreakers and surely not the legally elected henchmen in charge at the time.[}:)]
serf
So, since Cyprus is in financial ruin, we should buy non-perishable food, because it's a certainty that we will be set upon by zombies.
Now it all makes sense.
How's that? No one has yet explained what all that ambiguous terminology of a Bail In tactic IS with Canada's Banks yet.You guys want the cake and eat it too! Just like the international bankers. Please stay on topic.
serf
The Government proposes to implement a bail-in regime for systemically important banks. This regime will be designed to ensure that, in the unlikely event that a systemically important bank depletes its capital, the bank can be recapitalized and returned to viability through the very rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult stakeholders on how best to implement a bail-in regime in Canada.
Implementation timelines will allow for a smooth transition for affected institutions, investors and other market participants.
I agree with you on the food storage. You can't eat gold or silver.
Other than that I question your ability to think critically.
Yeah that's why you didn't answer the question.Because I do think critically and Nobody here knows what Bail in process is for Canada Banks when those derivatives hit the banks soon! [:D] Without the tax payers that is!
serf
http://www.nakedcapitalism.com/2013/03/worldwide-derivatives-market-estimated-as-big-as-1-2-quadrillion-as-banks-fight-efforts-to-rein-it-in.html
One of the biggest risks to the world's financial health is the $1.2 quadrillion derivatives market. It's complex, it's unregulated, and it ought to be of concern to world leaders that its notional value is 20 times the size of the world economy. But traders rule the roost - and as much as risk managers and regulators might want to limit that risk, they lack the power or knowledge to do so. A quadrillion is a big number: 1,000 times a trillion. Yet according to one of the world's leading derivatives experts, Paul Wilmott, who holds a doctorate in applied mathematics from Oxford University (and whose speaking voice sounds eerily like John Lennon's), $1.2 quadrillion is the so-called notional value of the worldwide derivatives market. To put that in perspective, the world's annual gross domestic product is between $50 trillion and $60 trillion. To understand the concept of "notional value," it's useful to have an example. Let's say you borrow $1 million to buy an apartment and the interest rate on that loan gets reset every six months. Meanwhile, you turn around and rent that apartment out at a monthly fixed rate. If all your expenses including interest are less than the rent, you make money. But if the interest and expenses get bigger than the rent, you lose.
Read more at http://www.nakedcapitalism.com/2013/03/worldwide-derivatives-market-estimated-as-big-as-1-2-quadrillion-as-banks-fight-efforts-to-rein-it-in.html#l4GYEj41tfA2qFmc.99
quote:Originally posted by CDMead
I agree with you on the food storage. You can't eat gold or silver.
Other than that I question your ability to think critically.
Yeah that's why you didn't answer the question.
Excuse me. Your question was, "Duh?"
Between derivatives, quantitative easing, entitlement programs, too big to fail and whatever else, we the populace are basically screwed. We all know this. You and a few others delight in pointing out the finality of our financial existence (BTW - you are going to die at some point) by latching on to every badly written op-ed piece masquarading as news as rabidly tossing it into the center of the forum.
My question is, do you get off on trying to depressing people or are you trying to foment revolution from the comfort of your armchair?
I've been turning into my great grandparents for a while now. I only keep enough money in the bank to pay bills month to month. they cant take what isn't there.
me too...