{
    "href": "/post/2013/03/16/cyprus-depositor-haircut-bailout-turns-into-saver-panic-frozen-assets-bank-runs-broken-atms/",
    "relId": "2013/03/16/cyprus-depositor-haircut-bailout-turns-into-saver-panic-frozen-assets-bank-runs-broken-atms",
    "title": "Cyprus Depositor Haircut \"Bailout\" Turns Into Saver \"Panic\", Frozen Assets, Bank Runs, Broken ATMs",
    "author": "pmjones",
    "markup": "html",
    "tags": [
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            "relId": "collapse",
            "title": "Collapse",
            "author": null,
            "created": null,
            "updated": [],
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        {
            "href": "/tag/economics/",
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    "created": "2013-03-16 21:36:25 UTC",
    "updated": [
        "2013-03-16 21:36:25 UTC"
    ],
    "html": "<blockquote>\n<p>Late last night, after markets closed for the weekend, following an extended discussion the European finance ministers announced their \"bailout\" solution for Russian oligarch depositor-haven Cyprus: a \u00e2\u0082\u00ac13 billion bailout (Europe's fifth) with a huge twist: the implementation of what has been the biggest taboo in European bailouts to date - the  impairment of depositors, and a fresh, full blown escalation in the status quo's war against savers everywhere.</p>\n<p>Specifically, Cyprus will impose a levy of 6.75% on deposits of less than \u00e2\u0082\u00ac100,000 - the ceiling for European Union account insurance, which is now effectively gone following this case study - and 9.9% above that.</p>\n<p>...</p>\n<p>Congratulations Cyprus savers - you were just betrayed by both your politicians, and by Europe - sorry, but you are the \"creeping impairments\" in the game known as European bankruptcy. And so is anywhere between 6.75% and 9.9% of your money, which you were foolish enough to keep with your banks (where at least you were compensated with a savings yield of... 0%).</p>\n<p>More importantly, as of this morning Europe has finally grasped that there is a 6.75% to 9.9% premium to holding physical cash in your mattress rather than having it stored with your local friendly insolvent bank.</p>\n<p>Luckily Cyrpus is so \"small\" what just happened there will never happen anywhere else: after all in Europe nobody has ever heard of \"setting an example\". Or so the thinking among Europe's unthinking political elite goes.</p>\n<p>And congratulations Europe: just when people almost believed you things are \"fixed\" you go ahead and prove to the world that you are as disunified (because size doesn't matter in a true union), as confused, as stupid and as broke as ever.\u00c2\u00a0</p>\n</blockquote>\n<p>Don't worry, it can't happen in the US.  (/me rolls eyes) Via <a href=\"http://www.zerohedge.com/news/2013-03-16/europe-does-it-again-cyprus-depositor-haircut-bailout-turns-saver-panic-bank-runs-br\">Europe Does It Again: Cyprus Depositor Haircut \"Bailout\" Turns Into Saver \"Panic\", Frozen Assets, Bank Runs, Broken ATMs | Zero Hedge</a>.</p>\n"
}