more or less that the Cypriot deal is the new norm if other Euro Countries need help. WOW again, That is a game changer. Spanish, Italian, Greek people with more than 100,000 euros in savings will be freaking out now.
You can search for it as he gave joint interview with 2 major financial pubs. I'd tell you which ones but then Yahoo prob. wouldn't take post.
Most scary part is that this was all done WITHOUT Cyprus parliment even voting on it.
I'm shocked that Markets aren't down 10%. Perhaps that will come later this week when reality sets in upon bank reopenings and a millionare is now holding $700,000 instead. Where to put it?? Gold, silver, farmland, guns, ammo??? surely not back into a bank.
European and US stock markets have fallen despite the agreement of a bailout deal for Cyprus.
The falls came after the head of the Eurogroup of eurozone finance ministers suggested that the Cyprus model, which involves a tax on bank deposits, could form a template in any future bailout.
Earlier, hopes that the Cyprus deal would solve the crisis lifted shares.
By 15:30 GMT, all major European markets had fallen into negative territory, joined by US stocks.
Markets in Europe and the US moved downwards when Jeroen Dijsselbloem, the Dutch Finance Minister who as head of the Eurogroup played a key role in the Cyprus negotiations, said the deal represented a new template for resolving future eurozone banking problems.
He also said other countries may have to restructure their banks.
Continue reading the main story “Start QuoteThe deal hammered out for Cyprus last night isn't 'fair'. Cyprus has not received the same treatment as other bailed-out eurozone economies”
End Quote Stephanie Flanders Economics editor
Read more from Stephanie
His remarks raised fears that other European countries with struggling banks may face the same solution as Cyprus, which agreed to force those with cash on deposit above 100,000 euros (£85,000), many of whom are Russian, to pay a substantial tax.
Cyprus will receive 10bn euros ($13bn; £8.5bn) in bailout funds, but has agreed to a major restructuring of its banks.
Small savers will be protected but Cyprus's second largest bank - Laiki Bank - will be wound up and split into "good" and "bad" banks, with its good assets eventually merged into the Bank of Cyprus, the country's biggest bank.
The two banks will remain closed until Thursday, while all others will reopen on Tuesday after being closed for more than a week, Cyprus's central bank says.
Continue reading the main story “Start QuoteThe bailout and rescue of Cyprus by the eurozone and IMF will not feel like much of a rescue to its people, who face economic misery”
End Quote Robert Peston Business editor
Read more from Robert
The Cypriot government suggested that account holders with deposits of more than 100,000 euros should expect to lose about 30% of their balances.
The UK's FTSE 100 index ended the day down 0.2%, while Germany's Dax gave up 0.5%, and France's Cac lost 1.1%. In New York, the Dow Jones was 0.5% lower.
In Madrid, the market slipped 2.5% while the Milan index was down 2.27%.
The euro was also driven lower, falling to a six-week low against the pound. The euro was down 0.6% to 84.74 pence.
The new deal for Cyprus, unlike previous agreements, does not require the approval of the Cypriot parliament.
The uncertainty over the future of Cyprus in the eurozone was sparked a week ago when its parliament rejected an earlier bailout deal, which also included a controversial bank levy.
Despite the Cypriot economy's relatively small size, many analysts had been concerned that the crisis would spread to the wider eurozone, had Cyprus been forced to give up the single currency.
There were fears that the country's possible exit from the euro would trigger a loss of confidence across the single currency bloc, and prompt investors to withdraw from other troubled economies, such as Greece.
However, while Cyprus is now likely to remain in the eurozone, the country still faces significant obstacles as it attempts to recover from the crisis.
The EU-IMF deal involves a massive restructuring of the Cypriot banking system, as well as austerity measures and tax increases.
There has also been significant public anger in Cyprus at the intervention of European authorities, and the credibility of the Cypriot government has been questioned.
"We see a risk that Cyprus' sovereign debt burden post-bailout might not be sustainable, as the country is likely to enter a deep recession caused by the shrinkage of the banking sector and severe deleveraging," warned Reinhard Cluse, an economist at UBS
Just gets better. After his remarks, World markets started falling. His spokesperson just came out and said:"Comments by Jeroen Dijsselbloem, head of Eurogroup of euro-zone finance ministers, were not intended to say that the Cypriot bank bail-in agreed by ministers last night should be a model for the future, his spokeswoman said Monday"
Just too hilarious that they would try and backtrack now. Cat is out of the BAG!!.....no-way you're gonna catch that cat again.
He also referenced that they would in future that would talk to shareholders and bondholders, even the depositors!??....Really, how do you talk to the depositor..."WE have frozen your bank account and am going to steal 20% of it"???
This is just plain sickening!
besides, The bondholders and shareholders still didn't get hit on the Cyprus theft, well not as bad as the depositor.
I'm not saying what they proposed wasn't completely messed up......but wasn't it rejected? Or did I miss something? I thought I read that the tax on deposits was rejected and it wouldn't go through?
I can't reply to your post for some reason, so I will replay here (Yahoo has been sucking bad lately!!!)
I just read the article on Yahoo. It's hard to believe some of the stuff going on over there. Very scary indeed.
Not a tax, but outright theft. Anything over 100,000 Euros is going to be penalized. I think figure is greater than 20% and may be up to 30%. Details still unclear. Yahoo has good interview on front page with adviser and it's scary.
In just 10 short days the norm is now "We can steal from you as long as you're above insured protection"...just insane crazy stuff.
If they can steal outright from savers and there isn't riots, what's one have to think when they steal our IRA accounts or profits in regards to minerals or ammo, etc....lot less of us than savers. We're a very small minority. Can't wait until I can empty my IRA. May not come soon enough:(
Yes, I remember the good old days of legging 3,6 and 12 month CD's paying over 10%.
I presently have 3 cars financed at 1.9% being the top interest rate. Use the cash to buy gold and silver. Just have to adjust to the times I guess. Hope I have $1million of long term debt at 4% and lower when the musical chairs stop and interest rates shoot back into double digits. Still won't trust any bank with my money though, so that will be a problem.
Most of the big money accounts left belonged to crocks/drugs. Other corporate/rich types who had money there just to avoid taxes, was told to withdraw their funds weeks and months ago. Banks take care of their own.
Think about how much money was stolen from middle class elderly in the last 4 years who typically keep their money in US banks. Say 30 million trying to live on a fixed income at close to zero interest.
Good job newsy!
on topic Cyptus President now says they're gonna begin Probe to investigate people responsible for crisis. What?....just incredible. Did these geniuses think this was a 2 week conspiracy? Try looking at Ben and EU Central bankers. sheesh.
I received letters back from agencies about spam - pump and dump. One agency in particular agreed with everything that I stated and did so in great detail. Different internet sites and companies were mentioned by them as well, including investigated reasons why some spam is removed and other spam has not. It was a very long letter and they said that they have acted and will continue to watch activity. Several agencies have set up teams to control internet manipulation. It was pleasing news about sites discussed by you, hariwonder and myself.