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Kuros
Joined: 27 Apr 2004
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 Posted: Wed Mar 20, 2013 4:38 am Post subject: |
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| Fox wrote: |
It's also a total betrayal of the very deposit guarantees governments put forward to encourage people to keep their money in the banks in the first place. The real answer here is to face up to an obviously defective system and reform it, not trying to shake down some Russian depositors for a quick fix. |
I think that's it. If the Cypriot government were to allow this, and it won't, it would rightfully shake depositor faith across the world.
The whole premise of the bank bailouts were, "If we don't do this, you'll lose your deposits." Now, in Cyprus, the EU says, "If we do this, you'll lose some of your deposits." |
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young_clinton
Joined: 09 Sep 2009
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| Posted: Wed Mar 20, 2013 4:07 pm Post subject: |
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| That would mean not only would you have to deal with inflation but also a tax. |
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young_clinton
Joined: 09 Sep 2009
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| Posted: Wed Mar 20, 2013 4:07 pm Post subject: |
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| That would mean not only would you have to deal with inflation but also a tax. |
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akcrono
Joined: 11 Mar 2010
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| Posted: Thu Mar 21, 2013 12:19 am Post subject: |
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| comm wrote: |
| akcrono wrote: |
| Based on the value of many of the holdings, most of the money will NOT come from the lower or middle classes. If anything, it's a tax on various Russian mobsters. |
If that were the case, why not tax money entering/leaving the country instead of deposits? I know Cyprus relies heavily on its banking industry to stay afloat, but surely this would have stood a better chance of passing? |
Probably, but it would be equally damaging to it's banking sector, which is a haven for people with money. Paul Krugman has a good take on it:
"My guess is that in the end Cyprus can�t reclaim the round-tripping business � and once it decides that it can�t, a resolution will become much easier. But they�re not there yet." |
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Titus
Joined: 19 May 2012
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| Posted: Sat Mar 23, 2013 7:21 am Post subject: |
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The spin now is "we're not stealing from normal people just Russian gangsters". Propaganda. They're stealing from everybody. 100k is not that much money.
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| Based on the value of many of the holdings, most of the money will NOT come from the lower or middle classes. If anything, it's a tax on various Russian mobsters. |
See ^?
"Most of the money". Of course. Cyprus is a relatively poor place. A small % will come from a large % of the population, because the large % of the population is poor. If your life savings are 99k then you're not exactly wealthy and are sensitive to losing this money.
Spain is getting in the action too:
http://www.zerohedge.com/news/2013-03-22/jpmorgan-inevitability-europe-wide-capital-controls
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| Add to this the move by Spain, which announced this week a tax or bank levy (probably 0.2%) to be imposed on bank deposits, without details on which deposits will be affected or timing, and the chance of sparking much broader deposit outflows across the union are rising quickly. |
0.2% to start, no doubt. Then .5 etc.
And all of this to keep a currency that has clearly failed in all respects. |
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Titus
Joined: 19 May 2012
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| Posted: Sat Mar 23, 2013 8:01 am Post subject: |
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http://www.reuters.com/article/2013/03/23/us-cyprus-parliament-idUSBRE92G03I20130323
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Cyprus said on Saturday it was looking at seizing a quarter of the value of big deposits at its largest bank as it races to raise the funds for a bailout from the European Union and avert financial collapse.
Finance Minister Michael Sarris said "significant progress" had been made in talks in Nicosia with officials from the European Union, European Central Bank and International Monetary Fund.
He confirmed discussions were centered on a possible levy of around 25 percent on holdings of over 100,000 euros at Bank of Cyprus, and expressed hope that a package could be ready by the end of the day for approval by parliament.
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25% over 100k.
The message is clear. The EU baking system can not be trusted to protect deposits. It can not be trusted to perform the most basic duty of a bank. |
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akcrono
Joined: 11 Mar 2010
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| Posted: Tue Mar 26, 2013 1:57 am Post subject: |
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| Titus wrote: |
http://www.reuters.com/article/2013/03/23/us-cyprus-parliament-idUSBRE92G03I20130323
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Cyprus said on Saturday it was looking at seizing a quarter of the value of big deposits at its largest bank as it races to raise the funds for a bailout from the European Union and avert financial collapse.
Finance Minister Michael Sarris said "significant progress" had been made in talks in Nicosia with officials from the European Union, European Central Bank and International Monetary Fund.
He confirmed discussions were centered on a possible levy of around 25 percent on holdings of over 100,000 euros at Bank of Cyprus, and expressed hope that a package could be ready by the end of the day for approval by parliament.
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25% over 100k.
The message is clear. The EU baking system can not be trusted to protect deposits. It can not be trusted to perform the most basic duty of a bank. |
A very bad precedent that will undermine confidence in banks in the Euro-zone. Any future indicators of a crisis will likely result in a run on the banks. |
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sirius black
Joined: 04 Jun 2010
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| Posted: Tue Mar 26, 2013 2:39 am Post subject: |
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| Titus wrote: |
25% over 100k.
The message is clear. The EU baking system can not be trusted to protect deposits. It can not be trusted to perform the most basic duty of a bank. |
Why limit that statement to the E.U.? I have no faith in the FDIC. If we come close to a collapse again and there is no reason to believe it won't happen again, they will find a way to get at the deposits.
Via the IRS maybe or some other ruse. Nowadays they are going after your money outside America.
I'm not a bury your money in your backyard kinda guy but I have little faith that the powers that be will protect my money and possibly they feel entitled to some of it. |
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Titus
Joined: 19 May 2012
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| Posted: Tue Mar 26, 2013 6:01 am Post subject: |
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| I agree with you. I do not see an elite in the USA that respects the population it lords over. Each of us is a pod that exists to create gains - in the form of usury, fees, rents to oligopoly - and nothing else. That is how they see us. They'll get away with what they can get away with. |
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Titus
Joined: 19 May 2012
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akcrono
Joined: 11 Mar 2010
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| Posted: Tue Mar 26, 2013 11:05 pm Post subject: |
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| Titus wrote: |
Back when the Euro was being created the idiot conspiracy theorists tinfoil hat etc etc said it was nothing more than a bankster plot to rape the continent. They were right. The Euro is a means to fleece Europe. It will get worse and worse. |
Just because several satellite Eurozone countries are in trouble doesn't mean that it was a banker's plot to "rape" the continent. The euro was a solid idea that was supposed to allow people to freely move between countries; it's been mostly irresponsible fiscal policy coupled with runaway financial markets that caused this. |
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akcrono
Joined: 11 Mar 2010
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| Posted: Tue Mar 26, 2013 11:06 pm Post subject: |
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| Titus wrote: |
Back when the Euro was being created the idiot conspiracy theorists tinfoil hat etc etc said it was nothing more than a bankster plot to rape the continent. They were right. The Euro is a means to fleece Europe. It will get worse and worse. |
Just because several satellite Eurozone countries are in trouble doesn't mean that it was a banker's plot to "rape" the continent. The euro was a solid (albeit flawed) idea that was supposed to allow people to freely move between countries; it's been mostly irresponsible fiscal policy coupled with runaway financial markets that caused this. Having a central bank that can print money and set interest rates would help alleviate the situation, but I'm pretty sure that no one stands to gain all that much from this crisis. |
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slothrop
Joined: 03 Feb 2003
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| Posted: Wed Mar 27, 2013 2:08 am Post subject: |
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edit
Last edited by slothrop on Mon Jun 10, 2013 7:15 pm; edited 1 time in total |
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Deja
Joined: 18 Mar 2011
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| Posted: Wed Mar 27, 2013 4:31 am Post subject: |
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150.000 out of >45.000.000? that\s less than 0.3%. Not exactly showing they trust the banks  |
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bucheon bum
Joined: 16 Jan 2003
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| Posted: Wed Mar 27, 2013 7:12 am Post subject: |
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| akcrono wrote: |
| Titus wrote: |
Back when the Euro was being created the idiot conspiracy theorists tinfoil hat etc etc said it was nothing more than a bankster plot to rape the continent. They were right. The Euro is a means to fleece Europe. It will get worse and worse. |
Just because several satellite Eurozone countries are in trouble doesn't mean that it was a banker's plot to "rape" the continent. The euro was a solid idea that was supposed to allow people to freely move between countries; it's been mostly irresponsible fiscal policy coupled with runaway financial markets that caused this. |
I think you mean the euro was supposed to allow money to freely move between countries. People were allowed to move between countries prior to the euro's creation.
Runaway financial markets? Huh? Please elaborate. And the only irresponsible fisical policy was in Greece. Spain, Portugal, and Italy haven't had poor fiscal policies; in fact the first two have been quite good in following orthodox fiscal policy. They're getting screwed over because they're tied to the euro and their lack of control over their monetary policy (due to them being a part of the euro). |
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