Banks Start Stealing Deposits

democracynow

Cyprus, you went to bed Friday night and come Monday your account is frozen so the Banks can get a bailout!

No time to dink around with this, the governments and banks are testing the water to just take your money!

From RT News:

Deposits below €100,000 will be shifted from Laiki to the Bank of Cyprus to create a “good bank.” Deposits larger than €100,000, which are not guaranteed under EU law, will be frozen and used to resolve debts. Customers could lose up to 40 percent of their savings in exchange for shares. According to Dijsselbloem, the raid on uninsured Laiki depositors is expected to raise €4.2 billion.

Warren Pollock - a market analyst and financial adviser says the financial turmoil in Cyprus is part of a broader crisis.

“In reality, this is a global problem which has not been addressed since 2007-2008 and previous to that with the issuance of huge amounts of debt and leverage into the system both in Europe and in the United States,” he told RT.

“And when that debt goes bad, the only recourse which exists is to tap remaining collateral in the system which is the savings.”Pollock believes that sooner or later this “sort of stealing” of savings may result in popular unrest. “We can definitely see smaller countries being the test to see whether savings could be stolen on a wider scale.” (stop from RT News)

The play of Chess on World Banks

All the King's Horses all the King's Men,  Cyprus Bank is like the Cayman Islands Banks,  a safe haven for money, well not so safe today.  The accounts on withdrawing for funds to pay this debt are over 100,000 euros which are 128,560 US dollars, but the euro is falling as I write this.  A third of these accounts are said to be held by Russia,  now 1.1 million people live in Cyprus,  the banks held 68 billion euros in deposits, including 38 billion in accounts of more than 100,000 euros,  enormous sums for a nation of people that could never sustain such a big financial system on its own.

This is history of a Financial War breaking out today, this all started with their phrase of "Financial Crisis"  The selling of investment by Banks which the leading provider for Greece was JP Morgan Chase,  now were just not going to leave JP Morgan Chase holding the bag, the names of many Banks worldwide were involved in the Subprime Scandal, Swaps and other Derivatives.  From there we get the collapse right?  But what has happen here the average person is on hard times and he or she is not spending money.  So the Feds bail out the Banks on the backs of the US Citizen (thank you) and it's not enough as your seeing today the freezing of assets.  

So where is all the money?  That's right Pod, in safe haven accounts around the world.  What were seeing here is a Big Boys' play, you sold me some crap paper so I'm taking your money to help pay for damages.  This was bound to happen, look at a "milk pail" as a financial machine and it's top cream always being skimmed before the rest of us get a take.  Now that this bucket is sloshing around the bottom of the pail not much to go after, so what do you do?  Right again Pod, go after the ones who gained from the Subprime Scandal,  you have to park your money somewhere.  68 billion in euros parked in accounts on this Island, wonder what the Cayman Island Banks hold?  Do you realize how many accountants are working late tonight?   Sweet Dreams!      

No need to panic here, we're just restructuring the Banks with your money! 

The head of the Eurogroup said the Cyprus rescue represented a new template for resolving euro zone banking problems and those other countries may have to restructure their banks.

Read More RT News:

From AP to advert Run on Banks

Boris Berezovsky's billions

Wall Street Likes the 40% Haircut!

Cyprus Restructuring and Limits

Like the old Who album, "Who's Next"?  Is it getting chilly in The Cayman's as time for a freeze!  

 New Money, Bit Coins have doubled in market value since March 4th 2013



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Plunderball

PLUNDERBALL games in Europe and how the United Kingdom turned from Aspiration Nation to Asphyxiation Nation.

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Repo 105?

If there has ever been a Betty Crocker  recipe for book cooking it's this Repo 105 and 108 which is the same just a percentage separates the two by 3%.  Now accounting becomes rocket science,  firms are hiring grads from MIT with math majors and you would have to be one to even begin to calculate their books.

Repo 105 is an accounting maneuver where a short-term loan is classified as a sale. The cash obtained through this "sale" is then used to pay down debt, allowing the company to appear to reduce its leverage by temporarily paying down liabilities—just long enough to reflect on the company's published balance sheet. After the company's financial reports are published, the company borrows cash and repurchases its original assets.  Now isn't that clever,  a temporary move to hide your toxic assets until underwriters are done looking your books over and then give the borrowed money back to your buddy.  But oops,  Lehman could not pay back the borrowed money and all hell broke lose.

Same thing happen to AIG when they created insurance for the swaps and derivatives sold to fund managers and other countries throughout the world like Greece,  the rug was pulled because Lehman went BK so AIG could not cover their spread.  Then the bailout started, they all got money from the Feds on the backs of American taxpayers (Thank You) with that there was no demand for what they should do with the bailout money.  So now with all that cash  from the Feds the battlefield has begun.  Wall Street does not want to be regulated and has hired attorneys along with lobbyist with the hundred of millions and even billions to halt regulators from the fat cow profits they designed.

They got the bailouts and instead of helping they bit the hand that feeds them so this shell game that contains no red ball can continue.  Because let's face it, no profit has ever been created like the subprime meltdown, we have a junkie on our hands.  What you need to do is control your own investing, many programs available with the purchase of stocks directly through a company itself,  no need for a broker or fund manager, instead of feeding this junkie cut them off.


traynickel

AIG- Treasury Department Turns a Profit

AIG Stock Price

WASHINGTON (AP) — The U.S. government said Monday it will show a profit of more than $12 billion from its $182 billion bailout of AIG after selling a big chunk of its shares in the insurer.

The Treasury Department announced the sale of almost 554 million American International Group Inc. shares at $32.50 apiece, netting the government about $18 billion.

The sale reduces the government's stake in AIG to under 22 percent from about 53 percent. That puts its holdings in the insurer below a majority stake for the first time since the 2008 bailout.

It will also mean that the $182.3 billion bailout has been fully recovered, and then some. The Treasury Department said it and the Federal Reserve have recovered $194.7 billion so far.

"To stabilize and then restructure the company with a very substantial positive gain for the American taxpayer is a significant accomplishment, but we need to continue the critical task of implementing Wall Street reform so that the American economy is never put in this position again," Treasury Secretary Tim Geithner said in a statement.

AIG, which is based in New York, nearly collapsed at the height of the financial crisis in 2008. As the housing market crumbled, it suffered crippling losses from exotic financial instruments based on mortgage securities.

Its bailout was the biggest of the Wall Street rescue packages.

If there is more demand for the latest stock sale, underwriters have a 30-day option to buy up to $2.7 billion more of the government's stake in AIG. If the option is fully exercised, the government's stake in AIG would drop to 16 percent.

AIG said it's buying back $5 billion worth of the stock.

Its shares closed Monday at $33.30, slipping 69 cents, or 2 percent.

52-Wk High 35.36

52-Wk Low 19.18

TheStreetTV

Jack a true Businessman

Wealth is the abundance of valuable resources or material possessions or the control of such assets. The word wealth is derived from the old English wela, (well) which is from an Indo-European word stem. An individual, community and region or country that possesses an abundance of such possessions or resources is known as wealthy.

Business as usual:

SuperEd86