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Banks In Europe May Now Seize Deposits To Cover Their Gambling Losses

Banks In Europe May Now Seize Deposits To Cover Their Gambling Losses 86

As expected, Cyprus and the EU reached a new late-night bailout deal last night that will reduce the chance that Cyprus’s financial system and economy will completely implode.

The new deal is better than the last deal in one key respect:

  • Deposits under 100,000 euros will be protected

That’s very important. Those deposits were ostensibly “insured.” To seize them, the way the last bailout deal would have, would have been grossly unfair and would have set a truly alarming precedent.

Now, small depositors in European banks can breathe more easily. At least in this case of gross malpractice on the part of reckless bank managers, their life savings have been preserved.

Alas, the good news ends there.

Although deposits under 100,000 euros will be spared, deposits over 100,000 euros will be seized and subjected to an as-yet undetermined haircut–with the confiscated money going to bail out the gambling losses of the aforementioned reckless idiots who run some of Cyprus’s banks.

This seizure, needless to say, will dampen the enthusiasm of rich depositors for keeping money in banks that get themselves into financial trouble.

And because many, many banks in Europe have gotten themselves into financial trouble, this will create a general state of unease among rich depositors throughout the Eurozone.

And it should wig out some bank lenders, as well.

After all, never before in the history of this global financial crisis has a major banking system allowed depositors to lose money, no matter how reckless and stupid and greedy their bank managers have been. And only rarely have bank lenders–those who hold bank bonds–been asked to pony up.

In this case, however, the depositors will lose money. Perhaps a lot of money. And if there had been big bank debtholders in Cyprus, they probably would have been socked with losses, too.

It’s possible that everyone will just laugh off Cyprus, viewing it as an exceptional one-off. After all, the Cyprus banking system was notorious for being the offshore money-laundering arm of many Russian oligarchs, so many folks will likely view this asset seizure as a case of “just desserts.”

But this optimistic view of the Cyprus horrorshow overlooks one key fact:

The main reason that Cyprus depositors will lose their cash is because it has become politically difficult (impossible?) for leaders in Germany and other rich European countries to bail out their brethren in the “periphery” without taking many pounds of flesh.

And it is that precedent, in addition to the fate of big depositors in Cyprus, that should spook Europe’s big bank depositors and lenders.

If Germany is done bailing out countries and banks without having those countries and banks cover some of the cost, it’s not clear why Germany will relent next time Spain, Italy, Greece, and other countries in near-desperately bad financial shape come rushing to the EU with their hands out.

Unlike Cyprus, the banking systems in these countries do have bondholders that can get haircut before the depositors get haircut, but the effect will be the same.

For the first time since the collapse of Lehman Brothers, those who lend their money to banks or keep their money in banks are at risk.

Because the neighborhood loan shark (Germany) is now extracting much more onerous terms.

That’s a sobering precedent.

And it will likely cause many people to wonder and worry about where their money is.

Source: Businessinsider

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Planet Earth

Polar vortex: “wild” winter is coming in the US, Northern Europe and East Asia after the 16th of January

Polar vortex: "wild" winter is coming in the US, Northern Europe and East Asia after the 16th of January 99

In the upper atmosphere above the North Pole, experts saw a rapidly swirling vortex of cold air that could bring severe frosts to the United States, Northern Europe and East Asia. Serious cold snap and snowy weather are expected after January the 16th.

Snowfalls and a cold snap hit South Korea since the start of 2021, hitting historic snow maximums and temperatures. In the country, for the first time since 1964, television and newer communications are sending people cold snap warnings:

The situation is similar in Japan, where a new snow storm hit historic highs:

On January 7, the thermometer In Beijing dropped to -20 degrees Celsius, breaking the 1966 record. In other regions of China, the temperature is also not sugar, and you can only move around in special uniforms:

The cold even reached Taiwan, where the temperature in some areas dropped below freezing point, snow poured down and people realized that rice terraces can be used as a ski jump:

Even more snow went to Spain, where on January 6, 2021, a temperature of -34.1 ° C was recorded – the lowest on record. After that, a snow storm hit the country, which has not been seen for 80 years:

The same thing happens in Canada and in the northern states of the United States:

It seems that after a stratospheric warming, the subpolar vortex began to split:

The vortex itself is a standard phenomenon. However, this time experts were surprised at his movement. It is possible that in the near future it will be divided into two parts. 

Scientists associate the strange behavior with the changed climate in the Arctic, which has become warmer. From September to December, the amount of ice cover decreased significantly.

The polar vortex is a low-pressure region located in the stratosphere and filled with cold air. When the jet stream of air that holds the vortex weakens, the low pressure area moves south. 

As the ice shrinks, more moisture will move inland. It will turn to snow, so snowfalls are expected. Snow, in turn, reflects heat, leading to a cold snap.

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Hospital in Naples was evacuated after a new, huge sinkhole appeared

Hospital in Naples was evacuated after a new, huge sinkhole appeared 100

Eyewitnesses said they heard a loud crash at dawn when a huge hole in the ground formed outside the Ponticelli Ospedale del Mare hospital in eastern Naples.

Early in the morning of January 8, 2021, a sinkhole occurred in the parking lot of a clinic in Naples. The depth of the formed cavity is about 20 meters, the total area of ​​the hole is about 2,000 square meters.

No casualties were found at the scene; firefighters say the sinkhole “affected an area of ​​about 500 square meters” and engulfed several cars parked near the hospital.

As the press writes and as a little can be seen from the videos, rescuers and firefighters were running around the pit together with the governor of the area.  But who should be there in the forefront are Italian geologists, since Naples stands in the very center of the volcanic system known as the Phlegrean Fields.

If the surface collapsed, moreover – the surface reinforced with concrete and reinforced from below with some kind of communications, then we are talking about serious soil deformations caused by the activity of magma.

Italy has been in doubt since the summer of 2020, because swarms were observed there in very atypical places in May, and according to the forecasts of old Italian seismologists, who had witnessed many strong earthquakes, it should have boomed in the August region.

Fortunately, nothing bad happened to Italy and there was no big earthquake. But, since there are swarms, it means that something is being prepared, the magma is gathering strength. 

Following this particular sinkhole event – an obvious sign that a major earthquake in Italy is already very close.

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A new great pandemic cycle has begun (again) in China

A new great pandemic cycle has begun (again) in China 101

In the first months of 2020, the whole world with a certain fright followed the events unfolding in China, where people fell on the streets during the day and astronauts wandered, and in the evening crematoria began to smoke. And now, with the onset of December, the cycle seems to be repeating itself.

Shunyi area in Beijing, where the authorities announced “wartime status” the day before. As you can see in the videos, thousands of people are lined up in the queue for mandatory testing:

Dalian city, where “wartime” is also declared. Neighborhoods are blockaded, people are walled up in entrances, familiar characters of George Lucas roam the streets:

https://twitter.com/UndergroundSilk/status/1341741036297723905?ref_src=twsrc%5Etfw

Chinese ‘rescuers’, before performing a combat mission:

Chengdu City:

Daluo Port, Yunnan – tourists came for adventure and they received the ‘time of their life’ after leaving the ramp:

If something happens in Beijing, it does not mean that tomorrow the same will happen everywhere. However, the trend towards such dynamics is observed and, as the practice of the first wave of the pandemic has shown, all countries and people, to one degree or another, have taken into account the ‘Chinese experience’. 

Therefore, one must think that everything will now be in peace, as in spring – a new global round of the fight against the Covid has begun in China, a new great pandemic cycle!

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