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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (13906)	3/17/2013 7:30:46 PM
From: ggersh	3 Recommendations Respond to of 33421

Hi John, So far Iceland said no thanks and didn't pay anything. The PIGS have been bailed and only Greece took a haircut to their bondholders. Supposedly the only real losers in the Cyprus situation are depositors under 100K Euro's @ 6.75 while those above are @9.99%. The hedge funds who gambled have won, the banks, bondholders, ECB and the big players haven't lost a penny. These are the very people who should be paying for the bailout, it shouldn't fall on the depositor's especially those under 100K for whom the accounts are meant to be insured to that amount. Europeans at best trust each other, not. WWII remains a scar to Europe from what I learned while living in London in the 1990's. The people of the PIGS might see this as a test. It happened once over there and it can happen again. In 1937 with the handwriting on the wall, no one thought it could happen and it did. I hope I'm wrong but imagine that being our account and we woke up with a 10% levy on it.

To: John Pitera who wrote (13906)	3/18/2013 1:40:58 AM
From: Hawkmoon	5 Recommendations Respond to of 33421

Couple of ways to look at what the fallout will be from Cyprus. It's sending a HUGE signal that if you have cash savings in the bank, you might as well... 1.) spend it, turning cash into hard assets.. 2.) withdraw it and stuff it in your mattress.. 3.) give it away, before it's taken away.. (which really is the same as 1 and 2 above) Right now, people are making less than 1% in their bank accounts and/or CDs.. If they have a 6% tax on their savings for the purpose of saving these banks (really a "debt to equity" conversion, since all deposits are, in effect, money loaned to the banksters), it's going to take 6+ years to make that up given such low interest rates. This is tantamount to confiscating gold, and I'm wondering if it's not an intentional plan by the big bankers designed to flush excess savings out of savings and into assets and economic consumption.. So are we going to see a flight of capital into US markets and the USD? Gold, Silver? Real Estate? Energy? That's a lot of money sitting over in Europe, looking for a new home.. So much it created negative interest rates in Switzerland.. But it was definitely coordinated among the central bankers involved.. (probably not the Russians.. LOL!!) Hawk