Government takes 10% out of savings accounts..

Dreamer · Mar 16, 2013

The BBC reported that in Cyprus this morning, the government announced it was removing up to 10% of deposits from banks, as part of a bailout plan for it's failing economy.

Could it happen here? What do you think the response would be to such an announcement?

BBC News - Shock in Cyprus as savers face bailout levy

Dale

Turtle · Mar 16, 2013

People in Cyprus with less than 100,000 euros in their accounts will have to pay a one-time tax of 6.75%, Eurozone officials said.

Those with greater sums will lose 9.9%.

Depositors will be compensated with the equivalent amount in shares in their banks.

That's like McDonald's giving you extra fries for free, because they're all burned.

Or Panther giving you a First Out for running a crappy load, in Belgrade, Montana.

Tennesseahawk · Mar 16, 2013

Talk about having no confidence in neither the government, nor the bank. I would withdrawal, and find another country to bank in.

EnglishLady · Mar 16, 2013

Tennesseahawk said:
Talk about having no confidence in neither the government, nor the bank. I would withdrawal, and find another country to bank in.

You wouldn't be able to get all your money though ...
"Reports suggest that depositors will be able to access all of their money except the amount set by the levy."

Ragman · Mar 16, 2013

EnglishLady said:
You wouldn't be able to get all your money though ..."

What's money?

Tennesseahawk · Mar 16, 2013

EnglishLady said:
You wouldn't be able to get all your money though ...
"Reports suggest that depositors will be able to access all of their money except the amount set by the levy."

That's my point. I would "access" what they would let me, and they'd never see another dime of it.

layoutshooter · Mar 17, 2013

Could it happen here? You bet it could. We are becoming more and more like Europe every day. NOT a good thing. Soon our lives will be controlled to the ninth degree.

LDB · Mar 17, 2013

Would Obama do such a thing? You even have to ask?

davekc · Mar 18, 2013

layoutshooter said:
Could it happen here? You bet it could. We are becoming more and more like Europe every day. NOT a good thing. Soon our lives will be controlled to the ninth degree.

They are broke and part of the euro so that is why they are wanting to do it. Much different here, we can print money when we get low. They can't do that. Comforting isn't it.

moose · Mar 18, 2013

This is just a test,
our Gov. is paying well attention to the fact that the take over accounts accoutred over a 5 days bank holiday.
also to the fact that other EU residents do NOT empty their bank accounts,
nor dose Americans.
having money in the bank nowdays is fullish.
same goe's to ANY sort of saving.
no monitory money can be protected, certainly not the US$.
just this day alone our country unfounded liability's increased in more then 4 Billion $.
just about half of daily Gov. takes over privet property's.
what do you meant by asking 'can it happen'?, it's have been going on for years.
they do not need to take it out, all they need to do is devalue the US$, a process that is happening every time they print{or click nowdays} a $, or make an unfounded liability $.
some of us still think we have money in the bank...
LoL...

layoutshooter · Mar 18, 2013

And it's only the beginning. It goes down hill from here.

Pilgrim · Mar 19, 2013

The politicians in Cyprus are not the first ones to come up with this idea.

The tax breaks for 401(k) and similar retirement savings plans add up to $100 billion a year and will cost the government an estimated $429 billion from 2013 to 2017. That’s more than the mortgage interest deduction.
These plans are also tempting targets politically, because 80 percent of their benefits go to the top 20 percent of earners, according to the Tax Policy Center. That’s why liberal-leaning groups, like the Pension Rights Center, say the plans’ tax breaks should be trimmed...
It’s a little early to say exactly how 401(k)s might be squeezed for their tax juice, but one proposal gaining ground is what’s known as the 20/20 plan. It was one of the deficit reduction proposals from the Simpson-Bowles bipartisan commission of 2010 and a recommendation of the Bipartisan Policy Center’s Debt Reduction Task Force.

http://www.forbes.com/sites/nextavenue/2012/12/29/watch-out-your-401k-is-being-targeted/

Remember the talk from Obama wanting to "close loopholes" and eliminate deductions for "the rich"?? Guess what - if you've got a 401K you could be "rich" and not even know it.

Remember how the income tax got started with the 16th Amendment in 1913? It was 1% on income over $3000 with an additional 6% surtax for income over $500K. The reason for this levy was to finance WW1. After the war was over the govt continued to take more...and more.

Currently we have a socialist POTUS and a lot of politicians who think they're entitled to take whatever they need from the citizenry to enlarge the scope and size of govt and keep themselves in power. Don't think for a minute that what's happening in Cyprus can't be proposed in a different form by our own Congress.