http://news.yahoo.com/cyprus-savers-bear......569.html

http://www.cyprus-mail.com/bailout/saver......20130316

http://www.cyprus-mail.com/baolout/incre......20130316

This bit about the Russians surprised me:

"In a radical departure from previous aid packages, eurozone ministers forced Cyprus' savers, almost half of whom are believed to be non-resident Russians, to pay up to 10 per cent of their deposits to raise almost €6 billion."

Has it ever

This is not a new thing at all.

Many houses in Bulgaria were built, but left unfinished. This was because, under the old communist era, for every (say) $1000 you had in the bank, they left you $100. Hence the reason that people abandoned their building projects, and why, today, Bulgaria looks like the aftermath of an atom bomb !

There has been already a run on ATMs in Cyprus. Large accounts are being taxed 10%, but even small accounts will be taxed almost 7%. It's hard to believe that the European banking system will long survive this sort of confiscation.

Well they would not listen.

The plan is on hold, due to public outrage.

http://www.bbc.co.uk/news/world-europe-21819990

Furthermore, it seems the forced withdrawals were an exchange for bank shares, which I do not recall reading before.

What did they expect ????

These socialistic liberals are not humans are they ????

By which you mean the capitalist bankers, leaders, and finance ministers in the Eurozone, particularly those in Northern Europe and especially in Germany, trying to force this sacrifice on Cyprus in exchange for a bailout? See my next post, though ...

A bit more about the Cyprus banking fiasco ... apparently Cyprus is a well known money launderer, which is said to be part of why the Eurozone is taking such a hard line.

http://www.telegraph.co.uk/finance/comme......ple.html

"With the eurozone considering a possible €17bn (£15bn) bail-out for the stricken nation, the BND warned politicians that the beneficiaries would ultimately be, as Der Spiegel put it, “Russian oligarchs, businessmen and mafiosi” ... Cyprus’s status as a recognised tax haven and suspected money laundering state is central to Brussels’ apparently ruthless handling of the country. It is one thing to rescue a country in distress, altogether another to prop up alleged criminal enterprises."

It appears the Eurozones hypocrisy knows no bounds.

By the way, how is seizing 10% of your savings materially different than increasing the money supply by 10% or so with worthless paper?

It depends on if they put it into circulation or not I think. It seems to me here in England the "money" they are "printing" is not going out onto the street so much as being used to manipulate the market in various ways. But there is no difference if they did put on the street as prices would rise.

Here in Spain the banking system is a joke, if you go overdrawn and your wife has an account in the same bank they will just take it from her account. If you owe money to social security same thing they jut take it. A few years back I went to withdraw money only to be told that I had no money in my account. Social security had taken it, I didn't owe them anything and it was a mix up on their part, but, it took me nearly 3 weeks to get my money back.

I am from Cyprus and what happened in one night is worst than a war. They managed to destroy our economy in one night! There is not a reason to have money in the banks, I always knew it is the biggest scam but system force you to use them one way or another...

Everything is blocked! I can not even transfer money from my savings account to current account! No money in the ATMS!

Somehow I doubt this will increase confidence in the European banking system.

Be careful. Glass houses, and all that.

Europe will fall first, balducci. Of course the American banking system is little better, but Europe will fall first.

Of course, the U.S. banking system failed massively a few years back, as you may recall. The bailout it required was insignificant compared to the one Cyprus is looking for.