Tuesday, March 19, 2013

Wall Street Bankers Pressuring EU Cyprus Bailout, Causing Run on Banks?

Protesters raise their open palms showing the word 'No' during an anti-bailout rally today outside the parliament in Nicosia, Cyprus. Photo by Yorgos Karahalis/Reuters

From Denny:  What a political and financial mess.  Germany at the helm of insistence and the EU bankers actually thought they could slap a 10 percent tax to fund a bailout for the country's banks on all depositors in Cyprus and not get any real push back.  You see, the cover story was that Germany and the EU bankers didn't want to underwrite the Russian oligarchs since 40 percent of Cyprus' banks contain money from foreigners.

Cyprus is commonly suspected as a money laundering site and tax evasion for Russian criminals.  What these greedy bankers got for their stupid move was a run on the all the banks as people flooded the ATM machines to withdraw all of their cash they could retrieve.  That was the fun on the weekend because the banks had frozen everyone's accounts and then closed on Monday to prevent getting at their own funds.  Wouldn't that make you angry too?


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By today on Tuesday the Cyprus Parliament was meeting to vote this tax into hideous reality which they actually planned to do until the public's run on the ATM cash machines this weekend.  Parliament turned down the excessive tax after riots and demonstrations - and probably some serious push back threats from said Russian criminals Tony Soprano style.

So, what is really going on here?  Does anyone really believe this cover story of wanting to tax Russian criminals and oil billionaires?  Come on.  That would be easy to isolate their accounts.  But no, they unilaterally decide to tax every unsuspecting Cypriot who is not involved in organized crime.  This was nothing but a power play out of control.

Does anyone smell this is a small test case to see just how much the greedy global bankers can get away with here?  Has anyone taken the time to question the real motives behind this unilateral move by just the EU financial sector?  Who could be behind Germany's pressuring them?  Who is pressuring Germany?  Could it be America's Wall Street?  Why is no one investigating this trick play?

Why are Cypriot banks in so much trouble?  They are exposed to large amounts of Greek debt and in dire need of recapitalization.  What better way to access quick easy cash than to steal it from average citizens as well as the criminals and the problem is solved in a flash half way to the goal of $13 billion.  This is also a way for Wall Street bond holders to get out of putting up the 10 percent for the huge loan to get the bailout.  It's make the stupid average guy be the fool paying for it.

Wall Street Big Banks and bond holders from brokerage houses and hedge funds have been pressuring the EU for years since the derivatives meltdown to shore up their weak financials caused by Wall Street's own bad decisions. After all, why take the financial hit when you can pass the problem down the line and pressure someone else to pay for it?

One of those bad decisions was Wall Street folks were bond holders for Greek debt.  Perhaps they are trying to protect their investments in those bonds or maybe recoup their investments altogether once this bailout becomes a reality.  The public does not know the whole truth about the matter yet is expected to pay up without disclosure.

It would appear Wall Street's latest crazy plot - via Germany and the EU financial zone - to avoid taking the financial hit is to force this style of bailout on the backs of the average citizen depositors in Cyprus. Perhaps they thought they could start small in an obscure country like Cyprus to see how much they get away with - and on the weekend when the news media was not watching closely here in America.

The sad truth is that the greed of Wall Street still walks in the back rooms of global political halls, seeking every advantage for profit and gain.  It would also appear this fiasco was a test case to see if they could pull this stunt in other countries, even America.

If you think I'm the only one sounding the alarm, think again.  American economist and Nobel prize winner Paul Krugman commented this move was "a dangerous solution" that could cause mass withdrawals in other countries like Greece, Portugal, Spain and Italy.

An economic council member advising the German government, Peter Bofinger, in an interview with German magazine Der Spiegel said, "From now on Europe's citizens really have to worry about their money."  Do ya think?

Let me share a thought with said greedy banker fools:  try this in America and those 300 million guns owned all over America will start hunting down bankers at will as if it were open season.  Americans are so financially stressed right now that this is the last thing they need - a bunch of greedy bankers thinking they can skim 10 percent off their deposits at will like they are wise guys from New Jersey.

Perhaps it's time President Obama's Justice Department get real and start dealing effectively with these greedy Big Banks both here and overseas.  It's called an outrageous attempt to legalize racketeering.  Do ya think?


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