Thank god your money is not in a bank account in Cypress

They had something akin to our FDIC insurance on bank deposits too.
But they're waking up this morning to learn how meaningless that is when a lot of shit hits fans.
The government is now about to decide that the only way to keep guaranteeing that the money
in those accounts has value, is to levee a big fee on the balance. In other words, if you
have up to $129,000 in an account, the government is going to take 6.75% of it. And for
amounts above $129,000, the government is going to take 9.9% of it. That's how they're gonna
fund a bailout of the whole banking system which is in insolvency.
There is fear that this could cause bank runs even outside of Cypress in places like Spain.

I guess that's better than just printing more money.

That is all kinds of shitty, but EE is right... it's better than printing more money. Man, bank runs would just make that situation about 99 times worse. Yikes.

Scary stuff!

UPDATE - http://www.reuters.com/article/2013/03/19/us-cyprus-parliament-idUSBRE92G03I20130319

Quote :

(Reuters) - Cyprus's parliament overwhelmingly rejected a proposed levy on savings in banks as a condition for a European bailout on Tuesday, throwing international efforts to rescue the latest casualty of the euro zone debt crisis into disarray.

The vote in the tiny legislature was a stunning setback for the 17-nation bloc; lawmakers in Greece, Portugal, Ireland, Spain and Italy have all accepted unpopular austerity measures over the last three years to secure European aid.

With hundreds of demonstrators facing riot police outside parliament and chanting "They're drinking our blood", the ruling party abstained and 36 other lawmakers voted unanimously to reject the bill, bringing the Mediterranean island, one of the smallest European states, to the brink of financial meltdown.

EU countries said before the vote that they would withhold 10 billion euros ($12.9 billion) in bailout loans unless depositors in Cyprus, including small savers, shared the cost of the rescue; the European Central Bank had threatened to end emergency lending assistance for teetering Cypriot banks, which were hard hit by the financial crisis in neighboring Greece.

The demonstrators were unbowed: "This is a great decision for Cyprus," said Andreas Miltiadou, a 65-year-old pensioner among the crowd. "The voice of the people was heard."

So...what will happen?

nekochan wrote:

So...what will happen?

I don't think I want to know. (It isn't going to be good for the EU.)