Cyprus

[zubs]

The story out of Cyprus is that their banks bought a bunch of Greek bonds that are not performing, and so their banks are about to go under.  To stop bankruptcy, the Euro overlords will lend the banks money if bank depositors agree to a hair cut of 6.6% for 100,000 euros or less and 9.9% for 100,000 euro +.

Cyprus bank depositors tried to get their money out this weekend, but banks will be closed until THUR.

The new plan that just came out on MON is the people with less than 100,000 euros will take no hit, but the people over 100,000 euros will take a 15.6% hit.

The leadership of Cyprus says if they do not take this deal, everyone will get a 40% ~ 60% cut in their deposits due to bankruptcy.

In the USA, we can just print more money to make our banks whole.  Lucky us.




I just thought about Jon Corzine.  This is similar to his swindle where he bet on Greek bonds and lost, and used MF Globals depositors money to pay back JPM.

 

[ps99472]

I thought this was about the new village in Irvine..

 

[zubs]

I brought up Cyprus because last year, I bought a house.  I did not buy the house thinking housing was at the bottom.  I bought it because I wanted to transfer fiat money into a tangible asset.  The Cyprus situation only proves to me that my decision was correct (plus low inventory and housing having gone up 10% from then).

I looked at all the "stuff" I could exchange fiat money for, and housing was the best choice, because I could mortgage even more fiat money to get this asset.  Plus it is more useful than investing in gold or stocks.

So this just proves to me that cash is not king when everyone is printing money.