Cool. Then you also know that Slovenia has bank deposits equal to less tan 40% of GDP and bank assets of a measly 130% GDP. Which makes it highly improbable that they will end up striking at any depositors at all for reasons far too obvious to bother typing.

Deposit flight may turn a bank illiquid, but Central Bank liquidity injections fix that quite easily. Insolvent banks are dealt with through bailouts, restructuring, and asset write downs that make them solvent by definition, and in the interim liquidity injections keep them going. This is perfectly standard stuff. It's not a good thing to do unless we must, but its inarguably better than collapsing an entire economy IMO.

Slovenia might be less of a risk, but the real problem European banks are still there and they will still destroy the economy. France is my current concern. It has two big and very weak banks which are close to insolvent. Both are too big to save and too big to fail. They have big losses all across southern Europe. Deposit flight is almost certain to return because of the mismanagement by the ECB. Now that there are even hints of a problem governments might simply have a bank holiday and shut the borders. As for solving deposit flight with liquidity that will no longer work, because they failed to provide liquidity to Cyprus, and certainly not without strings that will cost many their jobs. Also asset write downs are not even being considered in much of Europe because it would show most of the European banking system to be insolvent. QE is the way to avoid taking those losses. Yet they are all ending up on the central banks balance sheets instead. In fact the latest policy in the Budget to get people to buy with a government guarantee is nothing more than a way to hold asset prices higher than they are to avoid bank failures.

I am hearing of local job losses because small software houses had the majority of their bank assets seized. It makes investing in Cyprus right now too risky and so they are moving and laying off their Cypriot staff. Every policy for the last 5 years has been to extend and pretend to give the banks the opportunity to rebuild their finances. It has started in the UK but no where near enough. Still huge write offs to come. You can tell that they have no idea because every year the government extend their forecast by another year of when we will be back in balance and the debt will finally fall.

Wonders which country will be the first to adopt BitCoins as a currency.

This is interesting...

I don't read Greek but apparently this is a list of the balances of many Cypriot company accounts one month ago, and then the day before the banks were told they couldn't allow any withdrawals. Notice something strange?

Could obviously be fake, but I'd imagine there are some disgruntled Bank of Cyprus employees as well...

welcome to the real world of the 'banksters'

they don’t care about anything, except MONEY (finance)
yours, mine or anybodies else’s and especially themselves and their own

they (banksters) created this mess, we only are required to pick up the bill
welcome too the world of the 'banksters' that we have the (so sad) misfortune of living with ...

I did a google translate on the page


Basically insiders were given a warning that there would be a new tax and they emptied their accounts.

that’s why the banks were closed for over a week, to get certain account holders money out of all the banks ...

No they would have had to remove the money before the lockdown. The extended bank holiday was to sort out who gets hit with the tax, organise security and get the money from Frankfurt, and that was not going to happen until everything had been approved by the ECB.


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and the money going out of the back door by security vans for over a week had nothing at all to do with this ...

It did not get out during the shut down. It left in the days before. They were tipped off to withdraw everything before the lockdown. Don't forget that the banks would have been in touch with the president re a bailout before he declares a bank holiday.


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