Now I know that only rich bastards are being affected by this but that is not really the point. If they can steal from them now, how long before they go after everyone? Is our money safe in any bank anywhere now? Perhaps not, as our economies are all being artificially propped up and sooner or later, they will collapse under their own weight. When that happens, will the money junkies not grab everything they can? This is one of the most dangerous precedents set in our banking system and is leading to people trusting banks about as much as the IRS, DHS and a drunken Snooki all wrapped up into one.
Cyprus offshore banking is the main industry of the island, meaning once money starting pouring in, the bankers got drunk with power, manufacturing was all offshored to China, and now they are left holding an empty bag. Sound familiar? It should because that is exactly what all of Europe and the US has done. No country can survive without a manufacturing base especially one competing with slave labor overseas. This scenery always ends badly. And it is.
As the banking sector of Cyprus has been effectively destroyed (would you trust any bank in that country again? No.), a depression is inevitable and they will join Greece, Ireland, Spain, Portugal and Italy in failing economies. The Euro is about to hit a four month low versus the dollar, the Italian and Spanish stock markets are nose diving and trading is being halted for several large banks as their sell options have triggered breakers to stop the slide. None of that is good news for anyone.
Seven Italian banks have stopped trading due to intense stock slides listed here:
Some economists are saying this could lead to a bigger economic slide than the one seen in 2008, something I have been saying for months. Many are still saying that even after all this bank theft nonsense, Cyprus may be ultimately doomed and still have to leave the Euro. As banking is their main industry, no one expects it to continue to be so anymore. Russians are going to flee like their ass is on fire once they can get their money out and move it elsewhere and, most likely, out of Europe entirely. Cayman Islands here they come. This will lead to massive unemployment, more austerity and will be looking just like the PIIGS in no time. The Depression is gaining steam and none of us are safe at this point. Just ask anyone in Greece.
The reason for this total collapse is that faith in the European banking system is wrecked. Banking relies on faith and trust and now, they have neither. Many are going to pull their money completely from the entire system. If banks do not have money to use, they are going to go under and all signs point to a massive bank run across the EU at this point. If your money is no longer safe in your account, plus have no interests accruing due to ultra low rates, why keep it in there? Many are going to keep the bare minimum to pay bills and remove the rest to keep at home. This will collapse the entire banking system worldwide when this occurs. Get ready for it, because it IS coming. Bet on it.
The Cyprus banking system is going to collapse, especially when all the large investors take 100% of their money and leave. I would. Add to that small depositors who see the writing on the wall and remove 90% of their assets. What do you call a bank with no money? A husk. As more and more money gets withdrawn from Cyprus accounts, the more money will be needed to keep it afloat. And that is when austerity rears it's head and, as I am sure will occur, talk of taxing EVERYONE'S account. If you are in Europe and reading this, get your money out of the banking system stat. Unless losing as much as half sounds like a good idea to you. The banks have failed us. It is time for us to return the favor.