European Bank Runs Start Monday
by James Denison - 3/17/13 1:08 PM
10% theft of all deposits in Cyprus by European finance ministers. Remember, Cyprus is an "offshore" haven for tax dodgers and money launderers. The Marshal Gittler mentioned in article is whistling past the graveyard this weekend. Of course he's worried, being in FOREX (foreign exchange of currencies). So, who can you trust? Not the bankers, that's for sure.
"The decision by the euro zone to
force bank depositors in Cyprus to contribute towards a bailout, a first
in the euro zone debt crisis, could hurt other peripheral nations, the
euro and the global stock market rally, analysts warned.
The decision shocked many, including Sharon Bowles, chair of the
European parliament's economic and monetary affairs committee, who
called it a "disaster" for European Union rules and the single market. Euro zone finance ministers forced Cyprus' savers to pay as much as 10 percent of their deposits to help pay for a bailout of the country's troubled banking sector ,
a move which is expected to raise 5.8 billion euros. In return, the
country will get 10 billion euros ($13 billion) in assistance. The New York Times reported on Saturday that savers had already been trying to withdraw money from banks via ATMs and that many machines had run out of cash .
But it might be too late already. Cyprus has declared a bank holiday on
Monday to prevent such a run on the banks and banned electronic