How will the Cyprus crisis impact the U.S.?

How will the Cyprus crisis impact the U.S.?

March 28, 2013

By Katy Grimes

Is America headed for a Cyprus-like crash?

Will American bank accounts and retirement accounts be next?

When we put our money in the bank, we are technically lending the bank money. Could this happen in the U.S.?

I don’t know. I’m not a finance expert.

The Atlantic has a very interesting story about banks and their risky investing. “Some four years after the 2008 financial crisis, public trust in banks is as low as ever. Sophisticated investors describe big banks as “black boxes” that may still be concealing enormous risks—the sort that could again take down the economy. A close investigation of a supposedly conservative bank’s financial records uncovers the reason for these fears—and points the way toward urgent reforms,” the Atlantic explained.

“A disturbing number of former bankers have recently declared that the banking industry is broken (this newfound clarity typically follows their passage from financial titan to rich retiree),” the Atlantic found. Herbert Allison, the ex-president of Merrill Lynch and former head of the Obama administration’s Troubled Asset Relief Program, wrote a scathing e-book about the failures of the large banks, stopping just short of labeling them all vampire squids.”

Here is the Atlantic story: Whats’ inside America’s banks?

Leave your comments and thoughts about this.

5 comments

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  1. eyeamok
    eyeamok 28 March, 2013, 08:06

    Is America headed for a Cyprus-like crash?

    If you are going to ask a question like this, in my opinion it would only be fair to mention that President Obama and the US Treasury Dept are in complete control of the Decision making process at the IMF and that this “Plan” is and was put forth by OUR GOVERNMENT. The IMF cannot wipe it’s own Nose without US APPROVAL.

    So to answer your question : YES

    Reply this comment
  2. Hondo
    Hondo 28 March, 2013, 08:52

    Of course what happens in Europe affects Kalifornia and the USSA. Europe is Amerika’s biggest customer and Europe is officially in another recession right now with southern Europe in a depression verging on collapse. That will stagnate Amerikas economy at best.
    Kalifornia is Amerika’s biggest customer. If Amerika wants to sell something, it had better market to Kalifornia. But with Kalifornia having the HIGHEST unemployment rate in the country, the USSA’s economy will be stagnant at best.
    With Cyprus stealing the bank accounts of its citizens, there has been a minor run on the banks in the southern EU. Officials have hinted that similar actions my be tried in Greece, Spain, ect. A run on the banks in Europe can’t be good for the world’s economy, and there for, ours.
    Hondo……

    Reply this comment
  3. Hondo
    Hondo 28 March, 2013, 08:58

    Another commenter here said that it is all ‘vapor paper’. There is no collateral in nearly the whole worlds banking system. Collateral has been re hypothecated so many times that the whole thing is a house of cards. The money in all the banks is
    ‘vapor paper’.
    Hondo….

    Reply this comment
  4. Brown delta trout
    Brown delta trout 28 March, 2013, 09:25

    It’s only paper money, a medium of exchange. It’s the institution supporting the note that give it value. So the question should be, is the institution supporting the dollar acting like Cyprus in the past? Instead of taking large deposits of Russian (foreign) money, we just sell them treasury notes (China). Same-Same.

    Reply this comment
  5. Ulysses Uhaul
    Ulysses Uhaul 28 March, 2013, 14:20

    Yawn……same talking heads….where is the Poodle?

    Reply this comment

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