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The situation and -- Everest because after nearly two weeks of being closed.
The banks reopened and there are so many restrictions.
You'd imagine people would.
Flocked to the bank's long lines forming but it's actually pretty common Cyprus today in our very -- -- -- Has been there all week.
Talking to people looking to try to get as much money out as possible and keeping a cool head hybrids.
A Lauren and 300 euros today that's all -- -- to take out of banks is they opened it back out.
It's 05 hours ago from now.
So when we started here at 11:30 this morning banks opened at noon local time we -- long lines about forty to fifty folks here.
Took about a half hour to get through that initial line very calm very orderly people there angry there happy that they can take money out but.
They're worried in and quite frustrated with all that's going on in their country the situation hasn't been quite -- -- -- all nice and close.
For twelve days now after opening for the first time today they thought they were going to be open on Tuesday all but two banks.
And then the Central Bank reversed itself after some communication mix up between the government in the Central -- so.
Finally even though there was some speculation last evening that -- wouldn't open today.
They did we talked about some of the limits you can only take out 300 euros a day you cannot catch any checks.
If you're leaving the country with money you can only lead with 3000 euros -- anything more will be confiscated checking.
At the ports of entry and exit in this country so.
There's been a lot going on with with the banking sector here folks here at least in some sense everything gets something out there -- -- take more out.
Some are reluctant to put any money in banks though you talked to some folks they do you say look we're taking steps in the right direction.
At least the banks are open they're more concerned about what this bailout means for their economic future there is supposed to be.
Tax increases in government spending cuts is part of the deal to secure the ten billion euros that -- rescue their banking system and their economy.
And so they're worried about the deeper recession they believe is Emma is coming -- also questions as to whether or not this country slips into a depression.
Learn -- -- -- I mean you very popular today I quoted you.
Because -- your coverage from Nicosia thank you so much for joining us.
Well enjoy watching it arrested today on the Fox Business Network.
I'm not take a look at the big board here because some it's the last day of the trading week -- -- close tomorrow.
It's the last day of the month of march and is the last day of the first quarter and look at that that -- a 54 points right now it's been all over the place today up down a little bit flat.
But certainly for the year it's had a phenomenal round best first quarter for the -- since 1998.
-- origination and Cyprus is giving investors some -- right now.
Wondering on how this will affect the eurozone as a whole it -- will indeed even though there -- -- for that bail out.
Stay in the Euro zone and what we should be worried about here in the US we're gonna talk about all of these.
Issues right now with our -- nearly -- -- a -- next with foxnews.com as well as the fiscal times and Matt McCall the president.
A -- financial group thank you both of you for -- for joining us.
Before -- don't we start talking I just want to listen to some -- that rich got -- earlier talking to people.
And asking them their opinions about their financial future and even the perception of their country a little bit earlier this morning let's take a listen.
Yes -- actually.
I'll be more pessimistic ones -- see that certain people have been punished.
And finally our internal systems stop working in the went with -- I'm really -- I'm not angry I'm I'm just frustrated that I think sockets got picked on.
This is a beautiful island where is sitting on 400 billion.
You rows of oil in cats and I think it's -- The world taken advantage of us at the moment -- -- come here you know really I've been living if I don't know if -- me is -- aunt Sylvia.
So I guess the big question is why did -- or did -- get picked on -- Yeah.
Because it did it's a country of what 860000 people they have a huge -- system a lot of money coming from Russia you know what you call the Russian mob money -- -- -- -- the basis it was just too big.
And then of course being tied directly to Greece obviously when Greece fell -- it hurt Cyprus so.
I was reds and out of -- I thought I was get picked on too because any work harder -- life you save you put your money away suddenly the government says you know what we made a mistake.
The the people in a mistake the government mistake never take your money to pay for our mistake.
And what are the chances list that.
A system like that would spread to other countries connect I think he that's the big fear it's not gonna happen here because.
System -- -- much better shape of the banks in Cyprus for sure.
But the real concern now is that it spreads to Spain and Italy.
You know credit spreads are increasing in those countries.
People are very nervous those conditions you had if you had your money in a Spanish bank right now you would be giving serious thought.
To what's going on Cyprus because this is the first time that depositors.
Have been held accountable for what went wrong in the banks no one before now has taken care cut.
On the deposit -- so this is a huge sea change in the way.
Deals are being crafted and everyone knows that the Spanish banks are still incredibly bad shape they are not.
Italian banks my guess -- -- aren't going to be just fine men but the Spanish banks are continuing to live with loans property loans real estate loans.
That everyone knows are faulty and so this is us you know.
I mean I think it is actually -- serious anxiety.
I did -- I don't think and that's gonna happen here and I think pleased -- our lifetime who knows what happens down the road we were going OK but yeah it.
-- wrote that but -- will say ready granddaughter I can remember who wrote it but saying.
Basically America's kind of doing it to us are ready by putting so much money.
-- every time they print more money to -- for spinning the government's been doing it too much of it.
The value of the dollar that we -- -- bank is worth less which leads to inflation so in a roundabout way the money we have a bank is actually -- -- worth less because the government is overspending not directly taking over pockets but it indirectly it is that.
Violent and not only that Natalie in terms of think about retirees right now think the treasury I think went to 165 yesterday people who are earning nothing on their retirement accounts and you know it's amazing to me actually that you haven't hurt more an outcry in this country.
I don't know I don't understand what people want believe me people living on fixed incomes are people who work.
All you know you've seen poll after poll where people are now saying I'll never retire I'll never -- -- -- is because they're looking at their savings let's -- that put away.
200000 dollars and expected -- a certain income from that it and yeah I mean so Bernanke has done.
Perhaps a good job of keeping our economy -- -- you know.
Creating the antithesis if you will to the credit crisis but I tell -- what for people living on fixed -- you're totally right they are being clocked -- -- -- -- stock market are on the opposite because look pretty happy does is inflation is not grounded -- an all time high so.
Pretty younger generations in a market this looks great in the short term but again ideal of people's money every day the biggest Amanda had the last two years people coming to me in that.
Golden years saying I'm living off income -- -- -- I can't get it and it's -- -- -- -- They they're expecting getting 5% media here and as you mention the ten year below 2% it's very tough to find that -- and that affects a lot of people because parent and then.
We did the bailing out a lot of baby boomers years from now because they're going to.
Well me and the pension funds aren't seeing their returns that they needed so forth so it's a hole.
Kind of mess of residual outcomes if you well yes panel sounds like so it.
It is better way to have optimism hottest snipers get out of this situation do you get out of this situation -- -- and if they do what is their economy look like because.
For instance when -- plant had there crisis.
That currency to attracts.
The fine investment.
Well possible it not possible that risk because they share the -- with the other nations in the and I and by the way we're talking earlier about how this is yet another speed bump to our.
Not just her financial system but our economy and their growth of our economy because every time we begin -- little momentum.
Something comes out of Europe that is sort of catching us blind sided and slows down our growth because their growth has slowed down.
It's it's what -- these sort of intractable problem here is when the EU is created there was no mechanism for countries leaving so.
No one knows and you know during the hold Greek crisis.
Over and over again people writing articles saying look mean they've increased that figure is on right now.
They would be in better shape and conceivably the Arizona in better shape certainly insight -- -- case this dinky little nation's GDP that they should be out yeah.
But they don't know how to get saying they should be out of the well you know I was thinking get a -- this is from Iran it but.
-- thinking you know here we are if in a normal time he'd be going to Greece for vacation this summer right -- -- be cheap.
It is it not -- and I thought -- -- that there's no countervailing.
Mechanism there's no devaluation which brings in.
Trade commerce and tourism.
Which normally would be kind of how you write these situations and you can't do that is the hero tomorrow is zero.
It's the second strongest current chapter behind US dollars -- not -- -- but yet it was mentioned.
How that affect us -- people at home.
They may affect us because.
Europe continues to have issues you know Spain Italy less the man found -- Western European countries.
You -- twice so it's less demand for a lot of our goods as well so if it hurts our -- -- could -- to -- here -- -- it could be a real trickle down effect -- not something that we seed but that is directly not gonna come after -- money -- -- -- but there is a tie between all of us.
He -- -- biggest trading partner is not to mention you know our big manufacturers have.
You know looking -- in their businessman -- it's shrinking and it's not just you know it's it's on the issues because -- Intertwine.
On that we started talking about the European debt crisis after our financial crisis here but we really started talking about it I was -- 2010.
You -- mentioned all the countries and certainly mentioned the pigs Portugal Ireland Italy Greece and Spain Ireland and Cyprus.
I'm just too small yeah.
I think that we're talking about it and have -- can sometimes.
But it's also the news I -- I think that's just happened to -- a country that's it in blue country right now but.
I've ever hearing -- thought around a couple years ago but to me it went in one ear out the other because I was thinking Cyprus is so small you can go into the ocean it doesn't matter.
Can't do it in effect beautiful country but how does -- how I was taught myself how Cyprus can affect any decision I make on a daily basis.
And who knew that they had trillions in deposits from these Russians can be stuck pretty shocking thing I'll write and that lady will and deposits that they have they need -- have well.
-- yes there's money -- this thing how they get out of this somehow that if it happens a wolf some of that oil and gas -- I mean.
I -- sort of floating around not quite sure they're going to do that -- want they don't want it I mean I think that's probably only way to get out of this because who -- him.
We want to give them money and -- they make of it there's cheap flights and cheap hotels there I'm about.
And I -- that's.
It that they nick had it does give you hope going back to your credit.
What what the loan is like ten billion your house this is a deep heat that why doesn't some -- Kirk and keeping kids from ten billion euros and say done you know we'll probably panhandle and is found is just a small numbers so.
It they able figure this out but again.
Don't overlook that -- At least mental if not real issue here which is that depositors have lost money.
That is you know for all those people who have sort of held -- their bank accounts around the world in sort of fragile economy is thinking this is not the sustained.
It's not -- safe.
I appreciate the question I think that's why -- care about -- because they're taking deposits money it's actually just does the similar degrees we wouldn't care about any kind of Russia over the fact that.
People think you know it's not going to happen here people still in bed at night thinking wow but as mentioned lives in Spain this could be a reality.
You know Spain could be pulling money out the next bail out of Spain could require some kind of -- on the on the -- and that is Saint Mary's they are.
The second and third biggest economies and I believe so we're talking -- -- second -- yes a big difference in Cyprus.
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