HawthorneVillager.com

"I understand that electorates in Germany and northern Europe demand some sacrifice. However, when you accept a solution that basically expropriates 10 percent of deposits, you set a dangerous precedent," Vladimir Dlouhy, former Czech economy minister and now international advisor for Goldman Sachs told Reuters in Berlin. "If we get into deeper trouble, God help us, they may try to take 50 percent."
http://www.reuters.com/article/2013/03/ ... BG20130317

Only in Cyprus you say? Sure hope so.

Got gold?

The argument that was made was that they didnt take out enough money all these years in income tax so the govt is getting their money now. At least its only 10%. In canada we'd be lucky if thats all they took from our paycheck. Whats the difference if the govt takes 50% off your cheque and calls it income tax, vs allowing you to save all your money you earn, then take 50% of your savings.

This isn’t quite like an income vs savings tax.

It’s more like the government saying that in 2012 the income tax rate is X%. So you pay X%. Then in 2013, they say, “hey, we needed more, we actually need an extra 10%, so now you owe us money.”

This is theft, pure and simple. People willingly deposited their money under mutually agreed terms, and now the government is just arbitrarily changing those terms and taking money from people.

This is exactly what governments do, and why it’s so important to keep them small. They set the rules, and there has never been a case in history where they haven’t completely screwed over anyone with a penny to their name when it suits their interests to do so.

One day, this will be us. Might not be in our life time, or could happen next year, but it will happen. Big governments have big expenses, and all it takes is one financial shock to screw up the system and send them sucking up money from every pocket they can find.

Now you see why I hate libraries and publicly run schools so much. Lol

Is that a FACT?

I agree with Cactus Jack. Mo bikes, no problems.

The difference is that when you are working and know a certain % will be taken off in tax, there is an understanding and expectation that this money will be taken. What they are doing now is just coming in and saying you guys didn't pay enough, we are taking your money. That is like buying a TV at Futureshop, and then the next year Futureshop calls you up to inform you that they gave you too good a price and you owe them more money. This plan is theft pure and simple, and things like this are what stirs discontent in society, a very dangerous move IMO.

Furthermore, it severely erodes the public's trust in the safety of their bank deposits, and will discourage people from keeping their money in the bank. Bank deposits play a very important role in the strength of the economy, as banks are huge in wealth generation as they can keep money moving rather than being stagnant. I could do a full economics 101 about it, but just take my word for it, when the public loses trust in the banks, your economy is screwed. This is why we have deposit insurance in Canada, not to protect us, but to make us feel safe entrusting the banks with our money.

Its a hella scary precedent.. you know for sure the next country that is on shaky ground in the EU is going to have all of its residents empty out their savings accounts before the govt imposes this on them...

Exactly, it is an incredibly stupid precedent to set. Just that fear could cause a massive bank run, and collapse their economy just out of fear that their deposits aren't safe. I'm so shocked the euro zone is being this stupid on this issue.

I am shocked to hear the news. Hopefully it never happen here. At the same time I will dig a hole at my basement to store my hard-earn money. No interest but at leaast not losing 10%, God bless us!!!!!

From a U.S. professional stock trader:
" The people of the world should be paying attention to the fate of the Cypriots. Not only because the same fate may befall them, but because confiscation is wrong! Those citizens do not deserve to pay for the sins of the bankers who made themselves rich, yet have not gone to jail from their fraud. Those bankers knew what they were doing when they tranched bad mortgage paper, slapped a high credit rating on it and sold it to the world as high quality securities. The bottom line is that the people of a small country such as Cyprus should not be paying for the banker's Long Island estates.
As I mentioned yesterday, this is bullish for gold and if I was one of those hedge funds short the yellow metal, I would be worried about the size of the exit door when price begins to rise. "

http://caracommunity.com/content/bill-c ... ar-19-2013

http://www.thestar.com/news/world/2013/ ... _runs.html

The parliament of Cyprus has rejected the plan, following major citizen anger over the plan. Not that this resolves things, they still need a bailout, and presumably they wouldn't have come up with such draconian measures if easier options were available. The EU wants to give them the bailout, as letting Cyprus go would also also stoke fears in other countries and increase risks in Greece (major Greek banking investments in Cyprus) Spain, etc.