Cyprus bank holiday extended to Tuesday, maybe Wed.

[dixiegrrrrl]

Cyprus banks were scheduled to open Tuesday.....

But...

The Cypriot cabinet has declared Tuesday a bank holiday, for fear of capital flight, and this may even be stretched to Wednesday, as depositors are certain to withdraw huge sums from the Cypriot banks after the haircut imposed.

Nicosia postponed from Sunday to Monday the tabling in Parliament of the bill including the measures for the Cypriot bailout – including a bank account haircut and a tax hike on interest and corporate earnings – but the European Central Bank insists on a rapid voting because there are already signs a domino effect will follow across European lenders and markets from Monday.

There is genuine fear of market unrest on Monday morning when stocks may crumble in the eurozone and bank accounts in other southern European bank may suffer.

( this is most of the story....
but here is link)
http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_17/03/2013_488273

[dkf]

1. Cash is no longer the safe asset. Better to be in stocks, bonds, gold or land.

Well that's one way of moving people out of their cash hoards.

[amandabeech]

3. Well, at least keep your cash stuffed in your mattress at home

instead of in a bank in the Eurozone, where it appears that the Eurozone economic authority can force your government to tax your bank accounts.

No wonder the article speaks of problems in the European forex and bond markets next week.

[FreeJoe]

2. Scary

I wouldn't be surprised at all if this collapses Cyprus and puts a serious hurt on some other European banking systems. I'm having a hard time seeing how the Euro survives something like this.

[dixiegrrrrl]

6. Anastasiades does not have the votes to pass the law, yet.

Double dumb...announce the law, close the banks, THEN try to pass the law in the midst of the backlash.
And annouce the law is intended to 'strengthen" the banks.

Yeah...that'l work.

[CK_John]

4. Since money at the national level is just a concept, the concept will be adjusted as needed.

[Honeycombe8]

5. Uh-oh. Sounds like our market crash and Great Depression. nt

[Dawson Leery]

7. Precious metals may be an alternative to holding cash in the bank.

Last edited Sun Mar 17, 2013, 06:13 PM - Edit history (2)

The situation in Cyprus deems precious metals as well as land, to be a valuable alternative.
As another poster said, stocks and bonds may be an alternative too.

You still will need cash/currency at some point. Cypriots may have to hold their cash in their homes.