Add this curious finding to the to do list for the 'task force' investigating who not only circumvented the capital controls, but had advance knowledge it was coming. Surely they will get right on top of that.
http://www.zerohedge.com/news/2013-03-28/so-who-knew-february-cyprus-deposit-outflows-soared-three-year-high
So we’re left with a very different sense of what it means to have money in the bank. Small savers now know that their government will take their accounts if some future crisis makes it politically feasible. Large depositors now know that they’re unsecured creditors of extremely shaky institutions. In other words, a bank account yielding 1% is actually both riskier and lower-yielding than a portfolio of dividend paying stocks – or even a portfolio of junk bonds.
This turns the traditional risk/reward calculus on its head. Which, make no mistake, is a good outcome for the world’s governments and central banks. Cutting interest rates to zero and aggressively lowering the value of the dollar, euro and yen are intended to cause savers to become investors and investors to become speculators. The further out we all move on the risk spectrum the greater the chance that the old, indebted economies will “grow” through the next election cycle.
But turning savers and retirees into growth stock and junk bond investors means that the next 30% stock market correction (now long overdue based on charts like these) will be catastrophic for people who actually need their money. Meanwhile, in the bubbly here-and-now the same process will starve even well-run banks of deposits, since their CDs and savings accounts are now high-risk/low-return and thus not worth the trouble. The near-certain result: more banks will need bailouts, more savers will be expropriated, and more money will migrate towards risk.
The other unintended consequence of all this is — does it even have to be said? — a migration out of paper and into real assets. If there was ever a time to load up on physical gold and silver, this is it.
http://dollarcollapse.com/the-economy/risk-free-is-so-2012/
So Who Knew? In February Cyprus Deposit Outflows Soared To A Three Year High
- Eurozone