Galt's Gulch

Cyprus Bailout Risks Europe Bank Runs - Business Insider

Posted by UncommonSense 12 years, 8 months ago to Economics
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If anyone thinks such a situation couldn't happen here, consider this: Cyprus debt to GDP ratio is 87% ~ Much better than that of Spain and Greece. OUR debt to GDP is over 100%. Germany is demanding the $$ from Cyprus. Who's our 'Germany'? China. Imagine waking up tomorrow to find either 6.7% or 9.9% of your personal wealth gone. Just FYSA (For Your Situational Awareness)
SOURCE URL: http://www.businessinsider.com/cyprus-bailout-risks-europe-bank-runs-2013-3

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  • Posted by MrSelfish 12 years, 8 months ago
    The Euro/Cyprus bailout, inevitably leads one to wander back to the days after WWII and the implementation of the Marshal Plan.

    The USA expended untold billions and the lives of hundreds of thousands of Americans to defeat fascism, and we've seemingly ended up with socialism winning the day, after all.

    When Premier Khrushchev banged his shoe on the rostrum during his 1960 UN speech, and said that 'we will bury you', his wasn't talking about military conquest.

    If I may paraphrase, the definition of insanity is repeating the same self-destructive behavior over and over again, until - - -
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  • Posted by fivedollargold 12 years, 8 months ago
    By the way, if the GOP screws up and loses the House in 2014, look for the Demoscats to pull something like the Cyprus deal. I'd put money on them going after 401Ks and IRAs first.
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    • Posted by $ rockymountainpirate 12 years, 8 months ago
      401Ks and IRAs first. There's already been a lot of talk about that. Gold and silver too. It's not like there hasn't been a precedent set in this country already for seizing gold and silver. The First National Bank of the Mattress is sounding much safer at this point.
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  • Posted by fivedollargold 12 years, 8 months ago
    The author made an excellent point, in that, bank depositors in Greece, Italy, and Spain have got to be worried and might start a run on those banks. It is interesting that the EU didn't force Cyprus to take money from stockholders or bondholders, which is the normal course of business in bankruptcy. My guess is that some well-heeled EU politicians and their families own such investments. Just thinking....
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  • Posted by Non_mooching_artist 12 years, 8 months ago
    It would be a cluster-f#%{ of devastating proportions. This is a very volatile situation at best. The banking system is so screwed if this spills over, and has a ripple effect here. Slowly start pulling your money out. Slowly being the operative word.
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