Mar 29, 2013

Cyprus? Humph, I've Got FDIC...

The good folks in Cyprus - which I'm finding out is the Cayman Islands of Europe and specifically Russian Gangsters (Well that's what I heard) - thought they had insurance on their deposits as well. Like those folks in the US.

Guess what? Not as much as they thought. Now they're being "taxed" on those deposits, as part of the bail out once someone noticed that George Bailey lent all the money out to Greece (ooops) ... And they let out so much money, that it was disproportionate to their GDP. Kind of like a magnifying glass on the ant.

Or, if that isn't clear - Let's try this: You have 10 bucks. You borrow another 290, and use it the 300 to purchase securities. Oops. The market collapsed, and you're down 4%, or you owe 12 bucks.

Exactly how the 1929 market crash happened to take out the entire economy - because folks were buying stock on credit.

That's happening right now, in Cyprus. And the savers and good people there are getting hosed. No, sorry, it's being corrected by a "Tax." And to prevent bank runs, security has been tightened and strict limits are set on transactions, to 300 Euros.

"It's been contained," said Cyprus president Nicos Anastasiades. As if it were the Swine Flu.

But it can't happen in the US, right?  Right??

Well let's just take a gander at a little graph I found on the internet...
Uh, nope. No way that can happen in the US. 

Hey, look over there! Mad Men is on Sunday! Let's all look at that handsome man drinking and smoking!

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