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The Cyprus deal is now a template for the rest of the eurozone, Eurogroup President Jeroen...

The Cyprus deal is now a template for the rest of the eurozone, Eurogroup President Jeroen Dijsselbloem tells Reuters' Luke Baker. He's naturally referring to bailing-in uninsured depositors, but does he also mean capital controls and border checks for cash? Other eurozone countries need to work quickly, he says, to overhaul their own banking sectors.
Comments (33)
  • Kyle Spencer
    , contributor
    Comments (998) | Send Message
     
    The wonderful thing about Europe is that the market is that the politicians are dictating to the market, rather than vice-versa. The market is inherently unpredictable in the near term, but the Europe's politicians aren't (especially when they're being led by Berlin!)
    25 Mar 2013, 12:24 PM Reply Like
  • june1234
    , contributor
    Comments (2492) | Send Message
     
    The TBTFs politicians; they made that deal a long time ago. just follow the money ain't the Europeans benefiting from all this thats for sure, nobody is in the long run. Dumb idea that Euro those countries cant compete with Germany juts borrow from them
    25 Mar 2013, 07:53 PM Reply Like
  • Sue Carr
    , contributor
    Comments (67) | Send Message
     
    This guy ought to be shot.
    Such a remark is just irresponsible.

     

    What does he want, a Europe wide bankrun ?
    25 Mar 2013, 12:30 PM Reply Like
  • minecanary
    , contributor
    Comments (411) | Send Message
     
    That's right. How can we expect to steal deposits to pay bonuses and cover for our stupid mistakes if we tip the innocent customers off first.
    25 Mar 2013, 02:42 PM Reply Like
  • css1971
    , contributor
    Comments (870) | Send Message
     
    Already in progress.
    25 Mar 2013, 03:36 PM Reply Like
  • dieuwer
    , contributor
    Comments (2255) | Send Message
     
    Only an idiot would have more than €100,000 left in any eurozone bank by the end of today.
    25 Mar 2013, 12:43 PM Reply Like
  • markrpat
    , contributor
    Comments (197) | Send Message
     
    What happens when all accounts are spread out not to exceed 100k? The banking problems are still there. The rules will change overnight, and include capital controls and a reduction or further complication of "EU Deposit Guarantee Schemes (DGS)".
    25 Mar 2013, 01:24 PM Reply Like
  • Stephen Aniston
    , contributor
    Comments (2269) | Send Message
     
    Next time the limit will be 50K
    25 Mar 2013, 02:15 PM Reply Like
  • minecanary
    , contributor
    Comments (411) | Send Message
     
    Wait until the withdrawals show how weak the banks really are....and people realize the gov't guarantee is meant only to cover for a few bad banks when economies are booming. Does anybody really think deposits are insured? Got gold, bitchez?
    25 Mar 2013, 02:49 PM Reply Like
  • jabberwaukie15
    , contributor
    Comment (1) | Send Message
     
    If you read all the details of this "deal" with the Troika, the Cypriot banks are CLOSED and deposits FOZEN until further notice, i.e., until the government says they may OPEN again. You cannot ACCESS your funds if you are an investor. It is outright THIEVERY and this could happen ANYWHERE...so? Start counting your dabloons while you still have 'em, mates.
    25 Mar 2013, 02:56 PM Reply Like
  • markrpat
    , contributor
    Comments (197) | Send Message
     
    It doesn't need to be insured if it's locked up. Redemptions can be hindered by banks and brokerage accounts by simply not answering the telephone or shutting down a website.
    25 Mar 2013, 03:08 PM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    Official EU "template" denial to break in 3...2...1....
    25 Mar 2013, 12:57 PM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    And there ya go:

     

    http://bit.ly/11Efe13
    25 Mar 2013, 04:42 PM Reply Like
  • Stephen Aniston
    , contributor
    Comments (2269) | Send Message
     
    They don't use "templates" because Wiki leaks hackers hacked their Powerpoint and stole the template files :)
    25 Mar 2013, 04:49 PM Reply Like
  • minecanary
    , contributor
    Comments (411) | Send Message
     
    It would have been fun to watch Draghi soil himself when that hit the air waves. A la BB, Mario will be the only one authorized to speak to the media going forward.
    25 Mar 2013, 02:02 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8346) | Send Message
     
    Dijsselbloem is a rank moron.

     

    Seriously!
    25 Mar 2013, 03:21 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (1998) | Send Message
     
    Imagine the shock and grief, and the untold heartburn that Cypriot depositors, foreign and domestic are going to come to grips tomorrow March 26, 2013 when they access their accounts!

     

    Confiscation Communist Style in disguise!

     

    Wonder boy next?
    25 Mar 2013, 04:23 PM Reply Like
  • june1234
    , contributor
    Comments (2492) | Send Message
     
    That template statement was a dumb thing to say even if they retracted it later. Russians will reply not just energy they can mess with lot of european companies there. Going forward pay attention to TBTF stocks like Morgan and GS with heavy european exposure
    25 Mar 2013, 07:51 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8346) | Send Message
     
    If a politician can't even lie then what good is he? Yes, for sure other countries will have deposit "haircuts" in future, but the name of the game is to lie convincingly so that you still have money to haircut. You don't give that away preemptively. What a moron this Dutch Finance Minister is.
    25 Mar 2013, 08:04 PM Reply Like
  • june1234
    , contributor
    Comments (2492) | Send Message
     
    Yes he is. ALL CAP. More than one European right now wondering how much/not to keep in bank in case they change their minds again . French and Italian bank stocks have nosedived. Swaps market is a $700 trillion not billion biz They will need a lot more than $85 billion a month of Ben money to bail out any one of those TBTF's .CNBC thinks all that Euro money will come here; hope they're right.
    25 Mar 2013, 09:37 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8346) | Send Message
     
    That is the only logical conclusion, flight to safety in the USA.
    25 Mar 2013, 09:50 PM Reply Like
  • sideline$
    , contributor
    Comments (14) | Send Message
     
    Hope you're putting faith in anything CNBC says on there shows.
    26 Mar 2013, 02:26 AM Reply Like
  • Alpha Man
    , contributor
    Comments (207) | Send Message
     
    We need some of this in the US of A. Implement austerity, quit giving the banks free money via QE and the take the depositor's money to cover any shortfalls. A conservative's roadmap to prosperity
    25 Mar 2013, 08:07 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8346) | Send Message
     
    It also encourages plain living and high thinking. That has value beyond prosperity. The Great Depression generation reused even cloth diapers. Sadly that lesson is lost now.
    25 Mar 2013, 08:09 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8346) | Send Message
     
    One good thing may yet come out of this. What if, for example, Europeans realize that European banks are not safe and move all their money to American banks?
    25 Mar 2013, 08:47 PM Reply Like
  • markrpat
    , contributor
    Comments (197) | Send Message
     
    MI - the threat is that they won't be able to because of a pressure from the troika for the states to impose overnight laws on their own citizens. If it's big enough, the safe haven of the USD/treasuries will be off limits, due to capital controls. What happens to US treasury auctions? USD? Expatriation of foreign currency into the US stock market?

     

    Don't know myself. Just saying.
    25 Mar 2013, 09:14 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8346) | Send Message
     
    Capital controls across the EU will crush the Euro and cause the dollar to strengthen tremendously. It will also crush the European economy as trade would come to a halt. Think about it - why sell anything in the EU if you can't take the money out?

     

    Then, at some point, EU will need a bailout, from the US. Hopefully, the US will then set the ECB straight, and require massive printing ala QEternity.

     

    That will be a good thing for the EU.

     

    Thing is, countries will leave the Euro far before that.
    25 Mar 2013, 09:23 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (1998) | Send Message
     
    Capitol controls will fail for the same reason that Wage and Price controls failed during enacting by the then Nixon Administration in the 1971-73 era,

     

    The bottom line is that it defeats confidence, in bank consumers here and now, and the wage and salaried workers then.

     

    It is just human psychic:-) hey, there must be something very wrong that they are trying to hide; and that no one wants to be the last jumping ship.

     

    And, in the end, everyone for himself.
    25 Mar 2013, 09:42 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8346) | Send Message
     
    Everyone for himself is indeed the German mode it seems.
    25 Mar 2013, 09:51 PM Reply Like
  • markrpat
    , contributor
    Comments (197) | Send Message
     
    MI - cap controls - agree with your first paragraph, ala Iceland. I need time to think harder on the rest.
    25 Mar 2013, 10:01 PM Reply Like
  • thechaser
    , contributor
    Comments (457) | Send Message
     
    and macro investor, what do you think happens to your up up and permanently up up and up bullish run when the usd strengthens?

     

    oh, i know, the usa is the 'safe' place to be
    26 Mar 2013, 03:34 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8346) | Send Message
     
    You are spot on.
    26 Mar 2013, 06:29 AM Reply Like
  • solojif
    , contributor
    Comments (108) | Send Message
     
    Cyprus is just another scam in history. I highly doubt anyone will be held accountable, go to jail, revolt, or run on banks. The EU just stole peoples money and they wait peacefully to see if the banks are gonna open on Thursday? Ahh....yea I think this worked out great for Germany and the EU.Over a week and no riots. Some genius just got a nice end of the year bonus.
    Consider these events:
    (This is not ment to be a accurate historical timeline) Please feel free to add fuel to the fire and list what I missed
    1920's Ponzi
    1933 Roosevelt Executive Order 6102
    1971 Nixon Gold Standard GONE!
    1973 Hunt Brothers
    80's Savings and Loan
    80's Junk Bonds
    1999 Dot Com Bubble
    1999: Repeal of the Banking Act of 1933 - the Glass Stegal Act
    2001 Enron
    2002: Lowering of the Capital Gains Rate to 15%
    2008 Lehman Brothers
    2009 Mortgage Crisis
    2009 GM Bail Out
    2009Too Big to Fail (AIG)
    2010 Bernie Madoff
    2010 Robo Signing
    2011 MF Global
    2012 Raj Insider trading
    2012 Libor rate rigged
    2012 London Whale
    2013 Cyprus "Tax"
    2008-2013 QE 1,2,3
    2033 Social Security Insolvent ???
    Rob a bank and you go to jail for 20 yrs. Rob peoples retirements, and pensions. You get rewarded w/ stock options and a Million Dollar bonus !
    26 Mar 2013, 04:47 AM Reply Like
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