“What Cyprus makes clear is the realization that there is not enough money in the world to bail out the banks. So to keep the political experiment called the European Union alive, the oligarchs in Brussels have now resorted to stealing depositor money.
The important point here is if they can steal it in Cyprus, they can do the same in Spain, Italy or any other country where the banks are insolvent, and the reality is that most of the global banking system is insolvent. But sometimes it takes a while for a lesson to sink in. Some people began recognizing the counterparty risk that comes with bank deposits when Northern Rock collapsed in 2007, and the point was driven home again in 2008 with the Lehman debacle.
More details about the Cyrus bank collapse are starting to emerge, Eric, and it is not a pretty picture. Depositors in those banks are going to lose a lot of money. At Laiki Bank, which was the second biggest in Cyprus, the confiscation of depositor money went from 9.95% to what officials are now saying will be 80%.
Depositors with over 100,000 euros in the Bank of Cyprus, that country’s largest bank, are being told to expect to lose 50% of their money, and what they don’t lose will be tied up for months with the capital controls imposed by the EU to prevent what money is left in the banks from being withdrawn.
Full article: Turk – Unspeakable Financial Destruction Is Headed Our Way (King World News)