In the wake of Monday’s news that Cyprus depositors have official been scalped by the ECB and IMF, Jim Sinclair has sent an email alert to subscribers warning that If you do not exit the system now, you will not be able to exit the system, and that Capital controls and bail-ins will grow and reach your home.
Sinclair warns that DIESELBOOM’S depositor haircut precedent for bank failures is coming to the entire Western banking system, a fact that we have repeatedly driven home here at SD upon uncovering bail-in legislation in Italy, Canada, Switzerland, the UK, and the US.
Sinclair’s full alert on the Cyprus bail-in and on exiting the Western banking system NOW is below:
From Jim Sinclair:
“The raid on uninsured Laiki depositors is expected to raise €4.2 billion, euro group chairman Jeroen Dijssebloem said.
Laiki will effectively be shuttered, with thousands of job losses. Officials said senior bondholders in Laiki would be wiped out and those in Bank of Cyprus would have to make a contribution – setting a precedent for the euro zone.
An EU spokesman said no across-the-board levy or tax would be imposed on deposits in Cypriot banks, although the hit on large account holders in the two biggest banks is likely to be far greater than initially planned”
News on Cyprus’ large depositor’s confiscation of funds is in an MSM black out for obvious reasons. Money knows what herculean event has occurred to large depositors in Cyprus.
A reporting black out will not make the history making event go away
Very temporary capital controls have historically gone on for significant periods. Capital controls and bail ins will grow and reach your home. If you do not exit the system, you will not be able to exit the system.
Bank restrictions on capital ‘very temporary’ says Cyprus president
Step follows last-minute €10bn deal to avoid financial meltdown on island
Mon, Mar 25, 2013, 20:38
Cyprus is introducing “very temporary” restrictions on capital flows when banks reopen this week, the island’s president has said, seeking to reassure panicked Cypriots that a bailout deal struck overnight was in their best interests.
The step follows a last-ditch deal with international lenders on a €10 billion rescue plan to avoid economic meltdown, with Cyprus agreeing to close down its second-largest bank and inflict heavy losses on big depositors.
Without an agreement, Cyprus had faced certain banking collapse today and potential exit from the European single currency. It still risks a run on banks when they reopen their doors this week. The two biggest institutions stay shut until Thursday, but the rest will be open from tomorrow.
“The agreement that we reached is difficult but, under the circumstances, the best that we could achieve,” newly elected conservative head of state Nicos Anastasiades said in a televised address to the nation on his return from fraught negotiations with the European Union, European Central Bank andInternational Monetary Fund in Brussels.
He said the Cypriot central bank would implement capital controls on bank transactions, anticipating a run on deposits by Cypriots and foreigners fearing for the safety of their money.
But the president added: “I want to assure you that this will be a very temporary measure that will gradually be relaxed.”
Many larger investors face steep losses they cannot avoid.
Backed by euro zone finance ministers, the bailout plan will spare the Mediterranean island a financial catastrophe by winding down the largely state-owned Popular Bank of Cyprus, also known as Laiki, and shifting deposits of less than €100,000 to the Bank of Cyprus to create a “good bank”, leaving problems behind in a “bad bank”.
Deposits above €100,000 in both banks, which are not guaranteed by the state under EU law, will be frozen and used to resolve Laiki’s debts and recapitalise the Bank of Cyprus, the island’s biggest, through a deposit/equity conversion.