Yes, the game is take deposits, and use X% off the top to buy the lousy equity in the banks.  It is a forced cash for equities swap.  Do the depositors have a say in the matter?  Nope.  Will see how bank runs happen.

The entire depositor driven banking system violates some principles of ownership and comingling of funds.  Individuals pool resources and put all at risk, in one jumbled mess, and are given IOUs in their bank accounts they are supposed to cash out when they decide.  But the money isn't in their bank accounts, it is in a general pool of funds lent out, and only a fraction of the money that is left.

So, let's see, Germany forces this, and cause a run on banks everywhere that take down the global banking system, including their own banks. 

Hmm. Well Cyprus is a tax haven and Russian oligarchs will be pissed of. Still not big enough to cause any major sideffects imo. I think Russians pulled out in time and the cypriots themselfs will be pissed. But its such a tiny economy Lehman brothers was a way bigger deal.

I have an account with Deutsche Bank. If they go down, the whole financial sector goes with them. It was officially categorized as one of 4 Banks worldwide which are too big to be allowed to fail under any circumstance. Equally relevant are HSBC, Citigroup and JPmorgan this are the banks you can trust imo.

That's an interesting news.The bailouts the federal government made several years ago, to keep some large financial firms open and to prevent further fiscal chaos, may have not been as bad an idea as many thought. One of the biggest bailouts was the AIG bailout, which amounted to almost $200 billion being lent to the institution by the working class individuals. So far, the federal government has actually made a profit on AIG, about $18 billion worth. Resource for this article:https://personalmoneynetwork.com/

My two cents:


Cyprus had it great thanks to Russians.   So Russians getting pissed of makes totally sense. 

But people make also a very huge big deal of it for nothing really..

So you lose 10% of your saved money ...but you get 6-10% interest on your savings..

So that would mean that you get your money back in less than 2 years... 

They can take 10% of my account if they can promise me the next 5 year 6-10% interest on it :).

Things are happening there as expected despite the EU deal being rejected.

The ATMs should be pratically empty countrywide by now. And monday the banks themselves are going to open...

As well it should, that particular solution has been rejected but they are still after EU money... and all the EU actually asked for was 4 billion euros. 

They're going to close Laikai for sure, which should get them 1.5.

If they close both that should get them well over the projected 4 bil.

People are worried about there deposits if they do close however.

5.8 billion euros, actually... but yeah. Although it seems like it's the greek banks who are going to take over cypriot banks. Seems like the european Ponzi scheme is running on high gears once again.

Either way, no matter if they end up stealing 1% or 10% of bank accounts, the percentage is going to increase over time and the ECB will be comfortable on pushing for the same on other mediterranean countries.

And to possibly related news...

Russian Billionaire In Exile Boris Berezovsky Commits Suicide - The First Cyprus Casualty?

And even more entertaining things on places like ZH are comments:

- When the 1% start offing themselves, what should the 99% do?
- I am NOT so sure it was a suicide. Things become more and more interesting every single day. The other news: Putin called his national security council to consider the Cyprus affairs.
- A well timed warning to Cypriot MP's.
- He didn't "suidcide"; he collapsed gravitationally due to his girders overheating. Happens all the time.
- If we're lucky, George Soros had a tidy stash in Cyprus too....
- When we have the privilege to read Bernanke's obituary ???

What people miss in this whole story is the second biggest deposit holder. After all, you didn't disappoint me, Cyprus.

The Euro is going to collapse.

The USD is going to collapse.

The world economy is going to collapse.

Civil unrest and marital law worldwide imminent.

Goodbye, I've made my peace and because I was too broke to prepare, I know I'm as good as dead.