Posts Tagged ‘U.S. money funds’

Notes From Underground: The Europeans and Cyprus … The Idea of 10 Billion Euros = Five Hundred Billion Euros

March 17, 2013

The lunacy of the IMF and German government have pushed the limits of bank bailouts and proceeded to create a need for bank BAIL-INS. The IMF, with German prodding, desired the depositors in Cypriot banks to absorb some of the costs of the long-delayed bailout. It seems at this time that depositor with less than 100,000 Euros will be “taxed” at  6.75 percent while those with holdings MORE THAN 100,000 EUROS will be “taxed” at 9.9 percent. This is wealth confiscation in an effort to  maintain the Cypriot financial system. DEPOSITORS WILL BE FORCED TO ABSORB LOSSES WHILE BONDHOLDERS WILL BE MADE WHOLE. There is no consistency in Europe: Greek depositors were left whole while sovereign bondholders were forced to take large haircuts. The efforts by the IMF and Germany and the ECB to sustain the Cypriot system, an amount of money equal to 10 BILLION EUROS is going to cost the global financial system possibly hundreds of BILLIONS of dollars. The immediate fallout from the weekend lunacy of the Eurocrats is causing large selloffs in global financial markets.