Stocks around the world fell sharply Monday as investors fretted over a weekend plan to tax depositors in Cypriot banks as part of a bailout of the Mediterranean island nation.
"In the medium term the decision taken regarding the loss on bank deposits could have major ramifications for the eurozone if the European debt crisis re-escalates," said Gary Jenkins, managing director of Swordfish Research. "What I find most surprising is that they are prepared to take such a major gamble to save such a small amount of money."
Europe braced for renewed turmoil as outrage in Cyprus over an unprecedented levy on bank deposits threatened to derail the nation’s bailout. European shares and the euro tumbled.
...the raid on bank accounts risks triggering new convulsions in the financial crisis that began in 2009 in Greece. Moody’s Investors Service said that the move is a significant step toward limiting support for bank creditors across Europe and shows that policy makers will risk financial- market disruptions to avoid sovereign defaults.
Europe’s surprising decision early Saturday to force bank depositors in Cyprus to share in the cost of the latest euro zone bailout set off increasing outrage and turmoil in Cyprus on Sunday and fueled fears that the trouble will spread to countries like Spain and Italy.
Facing eroding support, the new president, Nicos Anastasiades, asked Parliament to postpone until Monday an emergency vote on a measure to approve the bailout terms, amid doubt that it would pass. The euro fell sharply against major currencies ahead of the action, as investors around the world absorbed the implications of Europe’s move.
The government extended a bank holiday it had imposed over the weekend, meaning banks will not open Tuesday as planned. There was talk that they might not open Wednesday, either.
In response, the European Central Bank applied more pressure to have the deal approved, sending two representatives to Cyprus on Saturday night to assure Cypriot banks that the central bank was “here for them — as long as the bill goes through Sunday or Monday morning before financial markets in Europe open,” said Aliki Stylianou, a press officer for the central bank of Cyprus.
Scenes of Cypriots lining up at cash machines raised the specter of capital flight elsewhere and threatened to disrupt a market calm since the ECB’s pledge in September to backstop troubled nations’ debt. With no government in Italy, Spain in the throes of a political scandal and Greece struggling to meet the terms of its own bailout, more turmoil could hamper efforts to end the crisis.
The Euro Stoxx 50 Index fell 1.9 percent and the euro slid as much as 1.9 percent; the currency was trading at $1.2960, down 1 percent at 11:45 a.m. in Frankfurt.
Borrowing costs in other debt-strapped nations rose. Italian 10-year bond yields climbed 9 basis points to 4.69 percent. The rate on similar-maturity Spanish yields jumped 10 basis points to 5.02 percent. Germany led gains among higher- rated nations’ securities.
Also in the news today:
Just one more little headline from this morning Brother Scott :) lol
the Liar-in-Chief made a surprise guest appearance on the History Channels "The Bible" yesterday night...
"Does ‘Satan’ from Sunday’s Episode of ‘The Bible’ Remind You of Anyone?"
Just learned that both Jack Kinsella and Ron Graham passed away on March 14th - last Thursday. Two more great prophecy watchers have gone home to be with our Heavenly Father. I wasn't as familiar with Ron Graham, but loved reading Jack Kinsella's articles. Praying for their families.
Mrs C, thanks for posting that! We thought the same thing while watching the show last night!
Jack K died????
I know his health had been poor for a pretty long while, but I'm not sure if that had anything to do with his death or not. So sorry to hear (obviously same re Ron Graham). Wow - thats unexpected
How fitting the man some on the Left consider to be "the lord and savior" is a dead ringer for the man cast to play Satan. Someone, if not God Himself, certainly has a sense of humor.
But having said that . . .i do hope this doesn't turn some off the miniseries because of perceived political connotations. I sincerely believe this series is being used by the Holy Spirit for a revival of sorts. I know for a fact, people of other faith traditions have been watching.
Stocks hardly dropped. it appears
that bulls are NOT affected but
this Cyprus charade. dow down a
lousy 62. Vote coming up by tonite
I believe in the parliment.
Wave counts still very BEARISH
Scott, what do you know about Syria bombing Lebanon this morning?
oops! forgot to sign the post above... grammie
Updating that story right now:)
Stephen, I suspect there's a reason why Cyprus Banks now aren't opening until Thursday. I wonder how muc the US had to do with getting them to delay? Few will be watching in the US when Cyprus banks open because of the delay and short attention span of Americans.
However, I think there will still be a major bank run that will spread to other countries . . .and I also think that's exactly what Big Banks want. What better excuse would they have for taking over the economies of Italy and Spain? To calm the fears.
Yes, I was listening to Jan Markel's March 9th show and Jan mentioned early in the broadcast that Jack Kinsella had JUST been diagnosed with liver cancer. She was asking for prayer, of course. Here's the interview if you care to listen. It's fairly early in the broadcast:
Then I learned today from a different website that he passed away - very sudden and unexpected, from the standpoint that the cancer was just discovered.
I got a chuckle out of that yesterday. I do hope it does not hurt the series. But I also think the mind had to be open to seeing.... Maybe this was another way to reach those low information people. Idk
After November, I too started addeding stuff to our coffers. I had prayed and woke up with 3 things to do, two carver mentioned.
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