time to start stuffing my dollars in my mattress.

Even more fun on the way... which country could be next?

http://www.zerohedge.com/news/2013-03-16/europe-does-it-again-cyprus-depositor-haircut-bailout-turns-saver-panic-bank-runs-br

@Vitaliy_Kiselev Worryingly, some of the things you've been saying are starting to happen. Who are the real big guys here?

Maybe Italy will be next with the "wealth tax"...

http://www.zerohedge.com/news/2013-03-17/german-commerzbank-suggests-wealth-tax-italy-next

If it's not too late ... the only proposal I have heard that might avert the total melt-down of the global banking system is for the US (and then Europe) to implement Glass-Steagall legislation which will split and quarantine the activities of banks -- quarantining the "real deposits and basic lending" activities of the banks from the speculative activities (e.g. derivatives exposure). Effectively this would be an "orderly bankruptcy re-organisation" rather than a chaotic melt-down.

Glass-Steagall is named after two US congressman from the 1930's and this banking legislation was implemented by Roosevelt to clean up the banks after the 1929 crash. It provided for relatively stable banking up to the 1990's when Wall Street managed to convince the US government to repeal the laws in order to keep the speculative bubbles going.

I am not sure who is pushing this reform in Europe, but the US push is lead by Lyndon Larouche. They have the legislation on the floor of the congress. Video background at:

I am curious if anyone on this forum has ever heard of this stuff and/or formed any opinions?? In terms of a political cause that could use some smart movie makers, social media and intelligent advancement, maybe this could be of relevance. I am not affilliated with any political party, but I like the sound of Glass-Steagall.

it's not too late ... the only proposal I have heard that might avert the total melt-down of the global banking system is for the US (and then Europe) to implement Glass-Steagall legislation which will split and quarantine the activities of banks -- quarantining the "real deposits and basic lending" activities of the banks from the speculative activities (e.g. derivatives exposure). Effectively this would be an "orderly bankruptcy re-organisation" rather than a chaotic melt-down.

It is good known old fuck and his proposals. That are absolutely useless now.

Sadly though, not all of the problems can be laid at the door of GLB. Instead, the real issue was the unrestricted investments in residential mortgages and residential mortgage-backed securities--which GLB never really affected.

This is not true. This question had been discussed here many times, so called "unrestricted investments" had been, in fact, solution, not problem. And no, chenging things in this department won't help.

Things are getting even more interesting in Cyprus. Forgetting the fact that leaving the money under your mattress looks like the best investment at this time (even though that is eroded through both inflation and currency risk.)

And now they are planning to change the % for the deal. Latest rumors suggest:

• Under 100k: lose 5%

• Under 500k: lose 10%

• Over 500k: lose 13%

The Germans really want to start by taking $2bn.

More quote from BBC:

"This simply looks like confiscating money that doesn't belong to you," Mr Medvedev said on Monday.

"This practice was unfortunately quite well known and familiar from the Soviet period, when money was exchanged at certain ratios or not returned," Mr Medvedev said.

"But here we are talking about a country that's supposed to be a market economy and an EU member."

He added that Russia would have to "make some adjustments to [its] position" in Cyprus, without elaborating.

Glass-Steagall worked so well that the Banksters hated it and finally got rid of it under Clinton.

This thing is pretty minor in present situation.

Vitaliy you seem to think Glass-Steagall is not an option (for reasons unspecified). Do you think that the whole situation is absolutely destined for hyper-inflation, riots and war? Or do you think there is scope for reasonably peaceful reorganisation? As you are on the ground in Europe, what specific political/economic events do you think may unfold in coming weeks/months? Who will flex what muscle?

Vitaliy you seem to think Glass-Steagall is not an option (for reasons unspecified). Do you think that the whole situation is absolutely destined for hyper-inflation, riots and war?

Whole situation is limited from above. By energy and resources (and degraded elites consisting from criminals).

Or do you think there is scope for reasonably peaceful reorganisation?

Reasonable peaciful reorganisation is possible if you could find reasonably peaciful method of killing hundreds of millions. I don't know one.

As you are on the ground in Europe, what specific political/economic events do you think may unfold in coming weeks/months? Who will flex what muscle?

Chris, I am not Vanga and can not predict all future events :-) I can tell only elites will be fucking you, but at this stage they'll be doing it soft enough. I can't tell you exact pose it'll happen.

The same confiscation has gone on in every other country; it just doesn't show up as a "tax". But it's the same loss of wealth, as assets are shifted from ordinary people to large financial institutions.

Consider bank deposits in "safe" countries. Sub-inflation CD rates, sustained only by government guarantees of the deposits, amount to a subsidy to banks, and a tax on savings accounts -- compared to what people would be earning, if the banks weren't "too big to fail" and interests rates weren't kept below market-value by sovereign banks. In four+ years, this loss of savers' income is much higher than the proposed Cypriot tax.

Or what about the zero interest loans offered by governments to investment banks? This is money lost to the general public, as public services are cut because of reduced income to the government.

By some measures, none of the big investment banks would be profitable today, if not for the market value of the "too big to fail" guarantee. And you're paying for it, in the form of increased poverty, reduced government services and lower wages.

At only 5%-10% confiscation, the Cypriots are getting off easy....