Europe

Europe’s Bailout Rebound Lasts Three Hours. Reverses Despite Panicked EU Minister Tweet.

"The faceless bureaucrat who heads the faceless, unnamed EuroGroup admitted the truth: the rescue of Cyprus would serve as a model for the next round of bailouts. That sent a clear message: anyone with a lot of money deposited in a bank of Italy or Spain or Portugal is at risk. He may wind up like all those rich Russians who thought their money was safe in Cyprus. Down went bank shares. Down went the stock markets. Down went the euro. Wait! Wait! He then reversed himself again. He tweeted a message that Cyprus was a one-time event after all. Too late. The truth was out. The damage was done. The stock markets did not reverse again. Neither did the euro." Continue reading →

Continue ReadingEurope’s Bailout Rebound Lasts Three Hours. Reverses Despite Panicked EU Minister Tweet.

Saving Cyprus Means Nobody’s Bank Accounts Safe as Europe Breaks Taboo

"The island nation’s rescue sets precedents for the euro zone that may stick in the memory of depositors and bondholders alike as investors debate who will next fall victim to the debt crisis. Senior Cypriot bank bond holders will take losses and uninsured depositors will be largely wiped out. The message that stakeholders of all stripes can be coerced into helping a cash-strapped nation may make investors more skittish they’ll be targeted if Slovenia, Italy, Spain or even Greece again is next in line to need help. The risk is that bank runs and bond market selloffs become more likely the moment a country applies for a new rescue." Continue reading →

Continue ReadingSaving Cyprus Means Nobody’s Bank Accounts Safe as Europe Breaks Taboo

Nigel Farage: Major European Bank Runs Now Taking Place

"The Germans are going to have a vote on it in their Parliament, but the Cypriots are being told that they shouldn’t have a vote on it. If that’s not moving into a German dominated Europe, I don’t know what is. If you happen to be a financial officer for a company, it would be criminally negligent of you to now leave your money or a company’s money in a Spanish or an Italian bank. I think what they’ve done today is to spark a major run on those banks. I see that some of the banks stocks have fallen 6% this afternoon, and I think in their desperation to keep the eurozone propped-up, I really believe that long-term they have made an absolutely fatal error." Continue reading →

Continue ReadingNigel Farage: Major European Bank Runs Now Taking Place

Russians prepare to quit Cyprus; Northern European bankers descend

"There were the two Andorran bankers who called offering to open bank accounts for the Cyprus-based businessman in the Pyrenees, and then Mr Mikhin's Swiss bank, which announced it would be sending representatives to Limassol to poach Russian clients on Tuesday, the day Cyprus is due to reopen its banks for the first time in over a week. While last week saw dozens of well-heeled Russians and their representatives fly down to Cyprus to check on bank accounts and confer furiously with Cypriot officials, they are being closely followed by another wave of visitors: the European bankers who hope Cyprus' loss will be their gain." Continue reading →

Continue ReadingRussians prepare to quit Cyprus; Northern European bankers descend

Top EU official: Cyprus bank rescue new template

"Inflicting losses on banks' shareholders, bondholders and even large depositors should become the 17-country eurozone's default approach for dealing with ailing lenders, a top European official said Monday. Banks' owners and investors must be held responsible 'before looking at public money or any other instrument coming from the public side,' said Jeroen Dijsselbloem, who chairs the Eurogroup gatherings of the 17 eurozone finance ministers. The bailout program for Cyprus marks the first time in Europe's three-year-old debt crisis that large deposit holders — wealthy savers, business people or institutions — will be forced to take losses." Continue reading →

Continue ReadingTop EU official: Cyprus bank rescue new template

Cyprus bail-out leaves ‘bitter taste’ for residents

"Standing in front of a cash machine on a street corner in Nicosia, Andreas Christou could hardly contain his fury. 'My money is in there and they won’t let me take it out!' he said, a few moments after withdrawing a paltry €100 – the maximum allowable after a draconian new capital control measure was introduced on Sunday. The 52-year-old businessman holds an account with Laiki Bank, the hardest hit of Cyprus’s debt-laden lenders. It will now effectively be dissolved under the terms of a deal brokered between international creditors and Nicos Anastasiades, the president of Cyprus, during marathon talks in Brussels." Continue reading →

Continue ReadingCyprus bail-out leaves ‘bitter taste’ for residents

Europe Deploys Next Generation Speed Cameras

"Struggling European economies are investing big money in stealth speed camera technology designed to mail tickets to motorists who have no way of knowing they are being watched. Eurozone economies have been shrinking, with both France and Spain under heightened scrutiny for failure to meet deficit reduction targets set by the European Union. Ratings agency Standard and Poor's called the situation in Spain and France 'socially explosive' in a statement to Neue Osnabrucker Zeitung. Both countries are now deploying the next generation of speed cameras." Continue reading →

Continue ReadingEurope Deploys Next Generation Speed Cameras

The Seeds of War Have Been Sown

"Unless the Troika backs off the weaker, heavily-indebted countries, which is not likely, yes, I believe Europe is headed toward massive civil unrest and war. Vladimir Putin is up in arms over the crisis in Cyprus. He will not stand idly by while Russian money is at risk in Europe. Keep in mind that Russia largely controls the European energy sector. If Putin feels Russian financial losses in Europe are unjust, I don’t doubt for one minute that he would threaten to retaliate by 'turning the lights out' in Europe. War and massive civil unrest in many parts of the world is a very real threat. And it’s already starting to impact the financial markets." Continue reading →

Continue ReadingThe Seeds of War Have Been Sown

Former US Treasury Official: ‘Banks Move To Enslave Humanity’

"What we are seeing, as in Greece, is the response to the effort to make the public responsible for the mistake of private banks. In Greece they forced the people to have wages cut, pensions cut, social services cut, public assets sold off, in order to cover the losses of banks. If they don’t stand with the people, there will be more political and social unrest and more discrediting of governments. What’s happening is governments are revealing that, even if they are democratically elected governments, they do not represent the people. They only represent a very few, very powerful folks. This of course destroys any confidence in democracy. That’s the biggest crisis.” Continue reading →

Continue ReadingFormer US Treasury Official: ‘Banks Move To Enslave Humanity’

Cyprus, lenders reach bailout deal; 40% deposit tax agreed

"Cyprus and its institutional lenders have reached a bailout deal, according to reports citing European Union officials. As part of the agreement the country will impose a 40% haircut on Bank of Cyprus depositors holding more than 100,000 euros ($129,760) in their accounts, Agence France Presse reported. The deal will now be put to the Eurogroup in Brussels for approval, the reports said. The weekend saw tense meetings between Cyprus and the Troika -- the European Commission, the European Central Bank and the International Monetary Fund -- to reach a deal before a Monday evening funding deadline." Continue reading →

Continue ReadingCyprus, lenders reach bailout deal; 40% deposit tax agreed