Gold and What Moves it.
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Gold and What Moves it.
Tracking all things that relate to and affect the price of gold.
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Expect Stunning Global Expansion Of Government Theft

Expect Stunning Global Expansion Of Government Theft | Gold and What Moves it. | Scoop.it

In the aftermath of the disaster in Cyprus and escalating fears from investors around the world that their savings will be confiscated, today King World News spoke with Michael Pento to ask him what people should expect going forward.  Pento spoke candidly about the frightening situation the West faces going forward. 


Eric King:  “Obviously (after Cyprus) people are worried that governments are going to go in and start to steal money right out of their bank accounts.”


Pento:  “This is the truth.  Governments follow something called, ‘The Rule of Law.’  But it is also true, Eric, that the rule of law is mutable.  By that I mean the rule of law changes with the whims of politicians.  In normal times what the government will do is they will steel the purchasing power of your currency surreptitiously.  In other words they will just print money and steal the purchasing power of your money without your permission.


What’s happened now in Cyprus is they have actually taken a more honest step, a more overt means of taking away your money.  They are taxing your deposits in the bank.  Now, when you have an insolvent bank, and you have an insolvent nation, the only thing you can do is to go into the private sector and take their money.


Normally that is done via money printing, but now the governments are getting aggressively in the business of stealing your money directly. ...


Hal's insight:

Click through for the full interview. The market action today would seem to be saying that things are solved in reguard to the Cyprus theft, but I don't think so, and I get the impression from all the others who are far more knowledgable than me apparently feel the same.

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Why China Is Tunneling a Mind-Boggling 800 Miles in 2 Years | Frank Holmes | Safehaven.com

Why China Is Tunneling a Mind-Boggling 800 Miles in 2 Years | Frank Holmes | Safehaven.com | Gold and What Moves it. | Scoop.it

Would it surprise you to discover that China is planning to add 800 miles to its subway system over the next two years? That's the distance equivalent to building a network from Dallas to Chicago in less time than the U.S. Congress can resolve a budget!

 

In 2015, when the infrastructure build-out is complete, China's subway track alone will be a mind-boggling 1,900 miles, according to JP Morgan.

 

The Asian giant has been in the midst of constructing the world's largest transportation system, laying mile after mile of high-speed rail and subway track. According to the World Metro Database, Beijing and Shanghai currently have the longest metro and subway systems, with about 275 miles each. The city of Guangzhou in China also falls in the top 10, with 144 miles of rail, beating Paris' network length of 135 miles. ...

Hal's insight:

I read this and it's a bit mind blowing. Now consider too how such a project will affect the metals, some of them precious, for electronics and such that will be required in the mamoth project. 

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Russian business looks to capitalize on Cyprus bailout — RT Business

Russian business looks to capitalize on Cyprus bailout — RT Business | Gold and What Moves it. | Scoop.it

Cyprus’s rejection of the European Union’s tax levy plan to finance the country’s bailout has piqued the interest of Russia’s biggest and most important businesses.

The proposed levy put over $31 billion of Russian money at risk of taxation, sent Russian stocks to a three month low on March 18.

Russian depositors would be especially hard hit by any levy, but so would Russian business, as Russia is a major player in the Cyprus banking industry.

According to rating agency Moody’s, Russians hold $31 billion in Cyprus banks and could lose more than $3 billion in the levy.  Nearly a third of the money in the Cyprus banking sector is Russian.

Cypriot Finance Minister Michael Sarris flew to Moscow and met with his Russian counterpart Anton Siluanov to discuss loan extensions and bailout options. But as of Wednesday the talks didn’t lead to any result yet.

 

According to Moody’s, VTB  group is ‘the most exposed’ to the credit crisis in Cyprus. VTB's subsidiary, Russian Commerce Bank, operates in Cyprus and is one of few to possess a full banking license. However the Bank is an active member of the deposit insurance system of Cyprus and VTB has only 3% of its capital tied up in Cyprus, which, according to First Deputy Chief Executive Officer Vasily Titov is ‘insignificant’ and should not be ‘dramatized’, as he told reporters in Moscow on Wednesday. ...

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Notes From Underground: There Must Be Some way Out Of Here, Said The Joker to the Thief (Bob Dylan)

Notes From Underground: There Must Be Some way Out Of Here, Said The Joker to the Thief (Bob Dylan) | Gold and What Moves it. | Scoop.it

Yes, another day and the markets had to try to understand the significance of Cyprus. The newswires were filled with analysts claiming this was a “tempest in a teapot” and that the doomsayers were blowing the Cypriot problem into a pseudo crisis. Again, a world that is highly leveraged is subject to a “single spark starting a prairie fire” and the fear of contagion and an electronic bank run are very real if the major policy makers don’t invoke the trust of the electorate and investors. The perceived actions by IMFDirector Lagarde (the joker) and the liquidationist mentality being thrust from Berlin and Chancellor Merkel (the thief) have created a situation where European bank depositors are nervous, especially so in the peripheral banks. THE MAIN COMPONENT OF THIS UNCERTAINTY WAS THE MOVE IN THE FRONT MONTH EURIBOR CONTRACTS,AS THE JUNE 2013 FELL 10 TICKS ON A DAY WHEN OTHER INTEREST RATES WERE LOWER. NOTHING SAYS BANK FEARS THEN A COUNTER MOVE IN THE EURIBOR AND LIBOR MARKETS. An increase in bank yields with equity markets falling is a sign about the fear in the bank deposits market. It seems that the policy makers that are leading the previously “revered” TROIKA(IMF,European Commission and ECB) have initiated fear for a mere pittance. ...

Hal's insight:

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Vietnam banks struggle to find enough gold to payback customers

State Bank of Vietnam has finally decided that commercial banks must stop mobilizing and lending in gold by June 2013.

 

HANOI(BullionStreet): As the deadline of June 2013 fast approaching, commercial banks in Vietnam struggling to gather enough gold to pay back to depositors.

 

State Bank of Vietnam has finally decided that commercial banks must stop mobilizing and lending in gold by June 2013.

 

SBV allowed banks to trade non-SJC gold for them to gather enough gold even after the new regulation on bullion gold trade take effects on January 10, 2013.

 

Observers say the volume of non-SJC gold kept by commercial banks has reached thousands of taels. ...

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Plunderball – The new Euro banking game

Author of THE DEBT GENERATION

 

So who will get shafted next? Will your lucky numbers come up?

We’ve all heard of deposit insurance, but does it mean what we all thought it meant – that up to a given sum we would not lose any money if our bank collapsed? And by the way – who pays the bill?

 

The simple idea we have all believed in was that up to a specified amount our money was guaranteed by a government  deposit insurance scheme. Most countries have one. As long as your bank is in it you’re covered. Or at least you were till this week.

 

Before we get to the rapidly evolving changes lets just go over the details of what used to be the case.

 

It used to be that below the guarentee limit your money was safe. It was only any amount above the guarantee, that you could lose in a restructuring. When a bank went under the normal bankruptcy rules swung into action (I’m leaving aside the TBTF gorilla in the room. Let’s not poke him just yet).TBTF aside – the collapsed banks’ assets would collected in into a pile and all the bank’s creditors (those who bought its debt, lent it money, put their money into it) would be put on a list in order of seniority, with share holders at the bottom, unsecured and Junior bond holders next with Senior insured bond holders at the top. Depositors were always ranked up there with Senior bond holders. Those at top would get most if not all of their money back and not take a loss, those at the bottom would lose everything. ...

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Cyprus Tax: 'Blowing Capitalism's Brains Out'

Cyprus Tax: 'Blowing Capitalism's Brains Out': Steve Keen, professor of economics at the University of Western Sydney, argues that if you destroy the trust depositors have in their bank accounts then you destroy the oil of capitalism [click through for the video]

Hal's insight:

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Just when I thought that this Cyprus saga couldn't get any worse - Ed Steer's Gold & Silver Daily

Just when I thought that this Cyprus saga couldn't get any worse - Ed Steer's Gold & Silver Daily | Gold and What Moves it. | Scoop.it

Ed Steer on Cyprus:


Just when I thought that this Cyprus saga couldn't get any worse...it does.  The government in that country just voted down the idea which, in reality, was no surprise.  So now what?  The stage is set for a massive run on the banks in that country.  When the banks finally do open, every person with a bank account and two synapse to rub together will be standing there to withdraw their money...all of it...and if they don't withdraw it, they'll wire it out of the country and out of reach.  Then there's the not-so-little matter of where all the cash is going to come from when the depositors rush the wickets.  They'll soon discover the true meaning of the term "Fractional Reserve Banking."  What the %#&@ were the IMF, ECB and the U.S. Fed thinking about?  This is what happens when you put a bunch of sociopaths in a room together. ...

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Price Of Gold Under The Last 4 Fed Chiefs

Price Of Gold Under The Last 4 Fed Chiefs | Gold and What Moves it. | Scoop.it

In his testimony to the Senate this morning, Fed Chairman Ben Bernanke had a relatively heated exchange with Senator Bob Corker. The Fed chairman claimed to have one of the best records of keeping inflation in check among Fed chairmen in the post-WWII period.

 

While CPI may have been contained under Bernanke, the price of gold sure hasn't. ...

Hal's insight:

LOL You need to click over for the chart. Remember, Bernanke is the one who said gold is'nt money.

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SECOND HAND SILVER - The Prospector Blog

SECOND HAND SILVER - The Prospector Blog | Gold and What Moves it. | Scoop.it

Buying physical silver or gold is easy these days. Unfortunately, finding more PM (precious metal) in the future will become increasingly difficult, but possible. I don’t have a crystal ball, what I do have is an ability to understand what motivates folks to seek monetary protection….. and what doesn’t. Silver, especially silver, is the metal to watch as more folks realize a rising DJIA and housing market is nothing more than a temporary spike spurred from piles of fiat currency. Use ounces of gold to determine true value and it’s obvious neither the DOW nor real estate should be viewed with optimism.  ...

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Gold ETF Outflows Paint Only Half the Picture - Casey Research

Gold ETF Outflows Paint Only Half the Picture - Casey Research | Gold and What Moves it. | Scoop.it
Why you should cheer the sell-off of gold ETFs.

 

By Alena Mikhan and Jeff Clark, Casey Metals Team

 

Since January 1, the holdings of gold-backed exchange-traded funds (ETFs) have dropped by nearly four million ounces (125 tonnes). February turned out to be the worst month for the world's largest ETF, the SPDR Gold Trust (GLD), which saw its holdings drop to 39.7 million ounces (1,236.73 tonnes), its lowest level since October 2011.

 

If this were the only data investors looked at, they might conclude that "everyone is selling" and maybe even that the bull market is over. But these data are misleading.

 

That's because while ETF holdings are declining, the physical market is seeing robust support. In fact, the US Mint – the bellwether for measuring demand of physical gold in the Western world – reports that sales of gold and silver coins are soaring. ...

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Charles Hugh Smith: What's Supposed to Happen, and What Might Happen: 3 Baseline Scenarios

Charles Hugh Smith: What's Supposed to Happen, and What Might Happen: 3 Baseline Scenarios | Gold and What Moves it. | Scoop.it

What might happen: printing money and issuing propaganda lose their effectiveness.


We all know what's supposed to happen in the global economy: we get more of everything: more stuff manufactured, more coal dug up and burned, more "aggregate demand" i.e. insatiable desire for more of everything, more innovation, more wealth, more money printed, more debt taken on to buy more stuff and more education, more tourists occupying more beaches sipping more drinks, more strip malls built, more airports expanded, more jobs created, more taxes collected-- more "growth" of everything, in every way and every day. Beneath this expansive more-of-everything splendor, the power structure is supposed to remain unchanged: a small political-financial Elite holds all the reins of power, a manufacturing-consent propaganda machine (a.k.a. mainstream media) persuades the masses all is well, wealth continues to accumulate in the top 1/10th of 1%, money is printed/created and distributed to the State-financial partnership's fiefdoms and cartels, moderate inflation eats away at the value of wages but makes debt cheaper to service, and the Upper Caste of technocrats continue their well-paid enabling of the Aristocracy's dominance. The dream of tens of millions of young people is to join the Upper Caste of lackeys, factotums, toadies and apparatchiks serving the Aristocracy's cartels and fiefdoms. In sum, the pie of wealth is supposed to expand so fast that the 10% left for the bottom 90% will be enough to satisfy their high expectations of endlessly rising prosperity. ...
Hal's insight:

Click over for the three scenarios.

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Blame game: France, Germany insist savings levy was Cyprus's decision — RT Business

Blame game: France, Germany insist savings levy was Cyprus's decision — RT Business | Gold and What Moves it. | Scoop.it
As outrage mounts over an unprecedented bank tax in Cyprus, Europe's biggest economies, France and Germany, have put the blame for the bank levy on Cyprus.
Hal's insight:

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Cyprus Catastrophe Has People Scared To Death

Cyprus Catastrophe Has People Scared To Death | Gold and What Moves it. | Scoop.it

Today John Embry told King World News that the Cyrpus catastrophe has people scared to death.  He says it has frightened people in Cyprus and around the world.  Here is what Embry, who is chief investment strategist at Sprott Asset Management, had to say regarding this ongoing crisis:  “The first time I saw the Cyprus news hit the wire I immediately thought about Einstein’s comment that two things are infinite, ‘The universe and human stupidity.’  I couldn’t believe Western central planners and the IMF would try to do something like this because it represented the tip of an iceberg.”


“If they could steal money in Cyprus, then they could do it anywhere and that would create another disaster.  I think Jim Sinclair shed some light on this situation when he talked about the motivation for it being the fact that they were going to try to get the money out of bank depositors to take care of bank bailouts.

 

"The move to steal money out of banks would be an effort to stop QE to infinity, but this has quickly turned into a disaster that has frightened people in Cyprus and around the world. ..."

Hal's insight:

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Nigel Farage - Cyprus Rejection Sets Up A Crash In Markets

Nigel Farage - Cyprus Rejection Sets Up A Crash In Markets | Gold and What Moves it. | Scoop.it

Today Nigel Farage told King World News the Cyprus government officials would vote out of fear to save their own lives and that’s exactly what happened.  Farage, who is Britain’s popular MEP, told KWN that what just happened in Cyprus is much bigger than the Icelandic revolt, and that it has now set up a crash in markets.  Here is what Farage had to say in this extraorindary interview:  “Even my direst predictions about what the bureaucrats in Brussels would do to prop-up the failing eurozone crisis, even I didn’t predict they would resort to theft, and that is all you can call this.  It is theft.  It is the breach, of course, of their deposit guarantee they put in place in 2008.”


“And perhaps on a higher level it’s actually a breach of the basic principle of the rule of law, which is one of the governing functions of the whole of our Western civilization.  So it is a truly astonishing thing that they (central planners) have done.

 

Have they thought through the consequences of this?  Because if you do it once (steal from bank depositors) in one eurozone country, what’s to stop you from doing it again in another eurozone country? ...


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oftwominds-Charles Hugh Smith: How I Became a Trillionaire (and Some Thoughts on Inflation)

oftwominds-Charles Hugh Smith: How I Became a Trillionaire (and Some Thoughts on Inflation) | Gold and What Moves it. | Scoop.it

... These photos illustrate the fundamentally arbitrary nature of fiat (paper) money.Why do we prefer the $100 greenback over the $100 trillion note issued by the Reserve Bank of Zimbabwe? The purchasing power of the Benjamin far exceeds the purchasing power of the $100 trillion bill. ...

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Sinclair - The Next Danger After Putin Crushed IMF In Cyprus

Sinclair - The Next Danger After Putin Crushed IMF In Cyprus | Gold and What Moves it. | Scoop.it

Today legendary trader Jim Sinclair warned King World News that Putin’s decisive victory in Cyprus over the IMF has left the IMF one misstep away from destabilizing and creating massive bank runs throughout the entire Western world.  Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had this to say in this extraordinary and exclusive KWN interview:


Sinclair: “The concept that our financial leaders are in some sense geniuses that foresee the future and calculate every move based on their ability to divine what will be the result of their actions, is absolutely false.  The IMF made a massive mistake here.

 

The IMF has now put itself into a very difficult position.  The IMF must now support Cyprus, even in the face of the rejection of the attempted confiscation of partial bank deposits, or let the Cyprus banking system seek its own solutions to its banking problems, which would be Russian Corporations, or Russia itself.

 

If Russia was to save the Cyprus banking institutions, then, basically, a sovereign nation has trumped the IMF....

 


Hal's insight:

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India central bank may ban Gold coin sales by banks

RBI early this week said it has undertaken a thematic study in respect of banks that are active in selling gold coins or wealth management products to examine whether there are systemic issues and to plug deficiencies and legal loop-holes, if any.

 

NEW DELHI(BullionStreet): India's central bank,Reserve Bank of India's move to study gold coin selling by banks is yet another attempt against gold in the world's largest gold consumer,analysts said.

 

The move is a clear indication that the central bank extending it's fight against gold to another level and likely to prevent banks from selling gold coins in near future .

 

RBI early this week said it has undertaken a thematic study in respect of banks that are active in selling gold coins or wealth management products to examine whether there are systemic issues and to plug deficiencies and legal loop-holes, if any. ...

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Dominica releases Gold cargo to Canada

Caribbean island nation Dominican Republic finally released a #gold cargo to Canada.

 

ST.DOMINGO(BullionStreet): Caribbean island nation Dominican Republic finally released a gold cargo to Canada.

 

Customs authorities in the Dominican Republic have released a Canadian joint venture's detained gold shipments amid an ongoing dispute over how much the company should pay the government to operate one of the world's largest gold mines.

 

The announcement came hours after officials had warned that the shipment valued at nearly $12 million could be detained longer because the source of the gold and silver had been incorrectly labeled as the United States instead of the Dominican Republic. ...

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Eric De Groot: Bullish Earthquake In Silver

Eric De Groot: Bullish Earthquake In Silver | Gold and What Moves it. | Scoop.it

There's two ways in which silver will be realigned with gold.

"Out the back door" through massive short liquidation into price weakness."Out the front door on a stretcher" via forced short-covering rally into strength.
Hal's insight:

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India's Gold jewellery imports from Thailand drops

Thailand is also a part of ASEAN-India Agreement on Trade in Goods where gold jewellery is included for concessional trade.

 

NEW DELHI(BullionStreet): India's gold jewellery imports from Thailand dropped to $95.48 million in the first three quarters of this fiscal.

 

According to official figures from India's commerce ministry, gold imports from the south east Asian nation was $109.79 million.

 

India and Thailand have signed a Framework Agreement for establishing an India-Thailand Free Trade Agreement. ...

Hal's insight:

Is it any wonder given the moves India's government has made to in regard to gold? Sheesh.

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Lear Capital - The Raiding of Private Funds in Cyprus: Extreme Bailout Measure or the Look of Things to Come?

Lear Capital - The Raiding of Private Funds in Cyprus: Extreme Bailout Measure or the Look of Things to Come? | Gold and What Moves it. | Scoop.it

by Scott Carter:

 

Who can forget the scene from "It's a Wonderful Life" when the citizens of Bedford Falls rush the local Savings and Loan en masse demanding to withdraw their money? This Hollywood style "run on the bank" features a compassionate and free-lending George Bailey contrasted with the overly wealthy and avaricious businessman Henry Potter.

 

Well, it's not a "Wonderful Life" for the people of Cyprus and their recent "run on the banks" is very real. In what is being called a "stability levy," the European Union has proposed a planned tax on bank depositors in an effort to financially rescue their smallest state. The €10 billion bailout of Cyprus is being called absolutely necessary to avoid complete bank collapse. If passed, those holding more than 100,000 Euros in Cypriot banks will be immediately hit with a 9.9% tax on their monies and those holding less than 100,000 Euros will be assessed a 6.75% tax.

 

Word of the bailout sent residents of the island nation rushing to ATM's to retrieve their money as banks scrambled just as quickly to limit electronic withdrawals and restrict all money transfers. As ATM's across the country ultimately ran out of cash ... panic and protests erupted throughout the island nation which sits just east of Greece. ...

Hal's insight:

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Dynamic Funds Manager Rob Cohen Imagines a Gold-Centric World

Dynamic Funds Manager Rob Cohen Imagines a Gold-Centric World | Gold and What Moves it. | Scoop.it

The Gold Report: Robert, you presented a paper at the Prospectors & Developers Association of Canada conference that focused on, among other things, the uses of gold as a monetary asset. Please tell our readers about that.


Robert Cohen: Gold is quintessentially a monetary asset. Many people believe it is the most ideal monetary asset on the planet, given that the world's other monetary assets are fiat currencies that can be expanded at the whim of a government.

 

Every ounce of gold ever produced is still kicking around on the surface, a total of about 160,000 tons. Half of that may be in the banking system. Miners produce about 2,500 tons a year. So only a very tiny expansion of liquid gold accrues every year, especially compared to the global liquidity created by printing money.

 

Imagine that we could remove currency from the world. We would have to think about hard assets such as real estate, oil, primary and precious metals relative to how one has performed with respect to another. If you do that, you see that since 1971 the average gold-to-oil ratio has been about 16.5 barrels of oil per ounce of gold. If you had been paying the gas station attendant in gold every time you filled up, you would have paid the same amount in gold for the last 40 years without noticing any price inflation. ...

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Trader Dan's Market Views: Another European Domino

Trader Dan's Market Views: Another European Domino | Gold and What Moves it. | Scoop.it

Dan Norcini:

 

... First - We are watching the inevitable effects of the experiment in socialism when it reaches its logical conclusion. When generations are either taught or have it implied to them that they can allow their governments to run up ruinous levels of debt and yet suffer no consequences whatsoever, they have little to no incentive to throw out the political leaders who hold the actual purse strings. The cradle to grave policies of the nanny state are not sustainable over the long haul. The reason is clear - politicians make promises to pay that they cannot keep. Eventually there is not enough money to cover the promises and the government is forced to borrow to the point that it can no longer afford to pay the rate of interest that creditors demand to compensate them for the risk.

We all know that the proposal to confiscate up to 9.9% of the savings accounts of those who have worked hard to amass that money is nothing more than government sanctioned THEFT. Spare us the insults of calling it a "tax" and thereby seeking to justify this reprehensible policy. People use banks because of one reason and one reason only - TRUST. Take that away and you have destroyed the foundation of the banking system. 

Put yourself in the place of an average European citizen who is watching this debacle unfold before their eyes. Would you feel the least bit secure if you had now been awakened to the fact that your government's leaders had spent the nation into bankruptcy and were suggesting that as part of the solution to their folly that those same fools who ran up the debt in the first place now be permitted to raid your personal savings account to somehow solve a problem of their creation? What would you do ...

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Record Bank Heist In Cyprus Spells An End Game For Your Wealth

Record Bank Heist In Cyprus Spells An End Game For Your Wealth | Gold and What Moves it. | Scoop.it

by Jeff Berwick:

 

The emergency bank holiday in Cyprus has been extended through Tuesday and Wednesday in what as far as the team at Dollar Vigilante has researched, will be the longest emergency bank holiday in Europe or North America since the Second World War.

 

Marking the first time during the five-year-old global credit crunch, depositors may be forced to pay upfront for their nation's bailout. European finance ministers are reaching into Cypriot savings accounts to backstop a 13 billion euro bailout for Cyprus. The decision was made public early Saturday morning, shortly after which Cyprus banks closed to slow down withdrawals.

And then, news hit Monday that the bank holiday has been extended till Thursday.

 

I had prepared comments on the Cyprus bailout-by-bank-account-robbery on Saturday evening and Sunday, but something told me that Monday would bring potentially even bigger news (what's so surprising about governments and banks stealing from their serfs, anyway?), either market-wise or politically. Well that news came in the form of a nearly week-long bank holiday. To be fair, the papers have not exactly made it clear which Thursday we can expect the banks to re-open. ...

Hal's insight:

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