I wish to thank a reader who, after seeing my post on the very odd effort to seize insured bank deposits in Cyprus, alerted me to a possible similar situation in New Zealand. The first three links below are from a New Zealand blogsite which offers three posts with varying viewpoints on the same subject: that New Zealand’s bank deposits are also subject to being seized by government officials who may want to take such action to bail out big banks. Readers may read the three posts to evaluate the risks faced by people with money in New Zealand banks to the same kind of seizure of those bank deposits as was attempted in Cyprus.
As a follow-up to the Cyprus crisis regarding the attempted seizure of insured bank deposits there, I noticed a media story that the bank holiday in Cyprus has been extended until next Tuesday (see fourth link). This action argues that the banks apparently fear a large bank run as soon as the banks re-open due to fears that it is no longer safe to keep their money in banks. There is a particular fear that large amounts of Russian money will flee Cyprus’s banks as soon as they re-open.
The fifth link is a commentary by Nigel Farage, a British member of the European Parliament, on the banking crisis in Cyprus. I think you will find his comments most informative and interesting. One comment he makes is about the short-sightedness of whoever came up with this scheme to seize insured bank deposits in Cyprus. Mr. Farage states: “I cannot believe this (move to steal money) could have been thought through. Frankly, if you would have asked me on Friday before the announcement, ‘What’s the worst thing you could possibly do that would trigger a run on the banks?’ Well, that’s what they did.”  I agree with Mr. Farage’s comment. This link was also sent to me by an alert reader.
  1. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/3/19_Nigel_Farage_-_Cyprus_Rejection_Sets_Up_A_Crash_In_Markets.html