Contrary to rumors that a background "Russian reckoning" may be taking place, in the aftermath of this weekend's Berezovski suicide which was followed this morning by a rumor that his arch nemesis Putin-backed Roman Abramovich, it appears that for now any 'hopes' of a wholesale retribution against the Russian oligarchs are just that for now:

•*ABRAMOVICH NOT DETAINED IN U.S., SPOKESMAN MANN SAYS

The Cypriot finance minister has ordered all the country's banks to remain closed until Thursday, the country's central bank announced.

Just hours before the announcement late Monday, the central bank said all but two country’s largest banks would open on Tuesday morning.


The postponement could be a sign that the country's banks are even lower on cash than they believed at the end of last week.

An SD reader has submitted a boots on the ground report on the escalating crisis in Cyprus, as the entire Cypriot economy is now on the verge of collapse:

Nowhere in Cyprus accepts credit or debit cards anymore for fear of not being paid, it is CASH ONLY. Businesses have stopped functioning because they cannot pay employees OR pay for the stock they receive because the banks are closed.

If the banks remain closed, the economy will be destroyed and STOP COMPLETELY. Looting, robberies and theft are already on the rise.

If the banks open now, there will be a massive run on the bank, and the banks will FAIL loosing all of its deposits, also causing an economic crash.

From SD Reader tzy:

Another letter from Cyprus :

A friend from Minneapolis has a son who is in Cyprus now. Here is an email that he wrote home, describing the chaotic situation there:

Hey fam! Things are getting pretty crazy over here in Cyprus. I don’t know if you guys have been watching the news or seen things online, but Cyprus is on the verge of economic collapse.

Over the past 5 years the Cyprus stock market has lost 98% of its value and the country has recently entered into a severe economic crisis, considered worse than Greece, Italy, Spain, Portugal etc.. As of last week the two largest banks in the country have completely shut down and froze all wire transfers out of the banks. Walking outside every day this week I have seen massive lines of people at the ATMs trying to withdrawal the maximum amounts. Today there was a man who was trying to get money out and when he realized it was out of cash he shook the machine violently and punched the display while cursing in Greek. If these banks go under (and this may happen) ALL money and all deposits will be lost, which will completely destroy the economy and way of living here.

Last week the European Central Bank offered a multi-billion Euro bailout package to Cyprus in exchange for a massive tax on all civilian bank accounts in the country. If this goes through (and I hope to God it does NOT) It will also devastate the economy and cause a giant run on the bank. Cyprus has also looked to Russia for help because Russians hold tens of billions of euros of investments in Cyprus (and the majority of bank deposits), however, Russia declined.

As it stands now, nowhere in Cyprus accepts credit or debit cards anymore for fear of not being paid, it is CASH ONLY. Businesses have stopped functioning because they cannot pay employees OR pay for the stock they receive because the banks are closed. If the banks remain closed, the economy will be destroyed and STOP COMPLETELY. Looting, robberies and theft are already on the rise. If the banks open now, there will be a massive run on the bank, and the banks will FAIL loosing all of its deposits, also causing an economic crash. TONIGHT there are demonstrations at most street corners and especially at the parliament building (just 2 miles from me).

Many are thinking that the ECB and EU are allowing Cyprus to fail as a test ground for new financial standards.

Just wanted all you guys to know the real story of whats going on here. Prayers are appreciated (although this is very interesting to watch) many of my local friends have lots of money in the banks.

The cypriots now have a golden opportunity. Oust the "leaders", set aside ingrained differences, co-operate and build a new model. No doubt they will need a currency so create one that is managed with the sole intent of enabling trade. Skill up, assess silly wants and desires and build a sustainable and equitable future...

Or descend into chaos and allow the perpetrators of this heinous crime to carry out the next phase of their total enslavement...

I wasn't implying that there's a realistic chance they WILL take the opportunity Jane. Sadly.

09.25 Reuters has done a factbox detailing all of the capital controls that have been imposed in Cyprus. Here are some of them:

Cash
• Individuals cannot withdraw more than 300 euros per day from any one bank, unless they have withdrawn less than 300 euros the previous day.
•Cheques cannot be cashed, unless they were issued by a bank in another country.

Transfers
Non-cash payments or money transfers are prohibited unless:
• They are for commercial transactions. Payments below 5,000 euros have no restrictions. Payments from 5,001 euros to 200,000 euros must be approved by the central bank, which will consider the liquidity of the bank involved and make a decision within 24 hours. Payments above 200,000 euros will be decided upon on a case-by-case basis.
• They are for payroll, and supporting documents are presented.
• They are for living expenses or tuition fees of students who are close relatives of Cyprus residents. Transfers for living expenses are capped at 5,000 euros a quarter, and supporting documents must be supplied.
• They are for credit or debit cards. Payments are capped at 5,000 euros per month.

Exemptions
The capital controls do not apply to:
• Any new money deposited from abroad after March 27
• Cash withdrawals via debit or credit card from an account in another country
• Diplomatic missions

knobmeup wrote:
Didn't Iceland have the same opportunity? I appreciate things have 'recovered' over there...but has anything REALLY changed...I don't believe so. The only thing the Cypriots have in their favour is that they are Greek'ish...so they might just go back to the roots of what a democracy is.

Anyway, here's a link to ongoing updates of todays events as they unfold...page refreshes itself every 90secs

www.telegraph.co.uk/finance/debt-crisis-...us-bailout-live.html

Jane

paulmasonnews Paul Mason
At a Co-op bank in Nicosia, savers queue: one man's lost 50k, and will lose 2x properties; another's ISA matured but has been frozen

The Greek people are anarchic and difficult to tame. For this reason we must strike deep into their cultural roots: Perhaps then we can force them to conform. I mean, of course, to strike at their language, their religion, their cultural and historical reserves, so that we can neutralize their ability to develop, to distinguish themselves, or to prevail; thereby removing them as an obstacle to our strategically vital plans in the Balkans, the Mediterranean, and the Middle East.

(As reported in the popular Greek magazine, Oikonomikos Tachydromos on 14 Aug. l997, Henry Kissinger, while addressing a group of Washington, D.C. businessmen in Sept.1974)