Cypriot bank savers forced to pay towards Euro/IMF bailout

[19sixtysix]

Have the Tax Payers Alliance said anything about Gideon's pledge to re-imburse armed forces and civil servant bank accounts in Cyprus if their savings get taxed?

I doubt the government will spend money. The troops are technically residents of the sovereign base areas which are not in governed by Cyprus or even in the EU. I'm sure some fudge will happen as the banks have branches on the bases.

And in the end may not be needed as i suspect this may not happen as the Cypriot parlementry vote has yet to happen and on reflection the gross unfairness of it all has begun to sink in. It might just seem like a tax on first look but most peoples lives are governed by how much is left in the bank and changing this randomly overnight is no solution to the Euro crisis. It just looks like the bankers are fucking off with more money.

 

[chilango]

It's not the "gross unfairness" that's sinking in. It's either a dawning realisation of longer term repercussions or (more likely) they never actually meant to do this in full, but merely float the idea so that a) they judge the reaction to it and b) whatever they do do seems restrained.

 

[two sheds]

This is to make sure cuts happen. I do not know what two sheds thinks is going on here. That long post is crazy.

Ok this will be my first misunderstanding. Why is this to make sure that cuts happen?

 

[butchersapron]

Ok this will be my first misunderstanding. Why is this to make sure that cuts happen?

'Cyprus' needed £17 billion. The IMF-EU would give £10 billion if the govt agreed to privatise cut and sell off, plus introduce general austerity and raise a further £6 billion by attacking the savings of the non-wealthy with a bit of sticking plaster that amounted to taking some money off the wealthy as well. And they decided to call it a tax, a solidarity tax, to pretend that it's a wealth tax. Which would allow people to fall for it.

 

[Tankus]

NOT done and dusted by any means

Not sure what ramble chemical you have added to your brain mix, but its obviously not helping

Finance

Minister Wolfgang Schaeuble, who represented Germany in the rescue talks in Brussels, tried to deflect blame for the agreement however, saying it was "not the creation" of the German government and that he was open to changes.
"Small savers cannot be made responsible for the debt crisis," Daniel Bahr, a member of the ruling Free Democrats (FDP) and health minister in Chancellor Angela Merkel's government, told Reuters. "Mr. Schaeuble is going to have to move on this."

Stanislaw Tillich and Volker Bouffier, influential premiers of the states of Saxony and Hesse and members of Merkel's Christian Democrats (CDU), both urged changes to the deal.
http://uk.reuters.com/article/2013/03/18/uk-eurozone-cyprus-germany-idUKBRE92H0GI20130318

Addressing an election rally on Saturday night, Merkel said that “anyone having their money in Cypriot banks must contribute in the Cypriot bailout. That way those responsible will contribute in it, not only the taxpayers of other countries, and that is what’s right.”

http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_17/03/2013_488307

From the Greek press , probably quoted in Spain and Italy but I haven't looked .....lot of backtracking now ...but it really doesn't matter , even if they eventually don't do it (although the money has been removed from accounts )
How can there not be a bank run on Thursday ?, every days delay will add to the tension , plus people will be pretty short if the banks have been closed for almost a week ?

 

[TopCat]

Quote from the last few mins.
Government minister Greg Clark is addressing parliament now about the Cyprus crisis.
Clark, Financial Secretary to the Treasury, confirms that members of the UK armed services will be compensated "reasonable losses" suffered because of the savings levy.
He then says that the Government is suspending payments to UK pensioners in Cyprus with Cypriot bank accounts until "at least tomorrow".
Clark adds that pensioners could switch payments to another bank account.

 

[frogwoman]

god, can you imagine if they start doing that here?

 

[chilango]

god, can you imagine if they start doing that here?

Shit just got real.

 

[TopCat]

god, can you imagine if they start doing that here?

They can take as much of my overdraft as they like.

 

[chilango]

They'll make sure they can get repayments for overdrafts and debts deducted straight from pay before they pull this shit here.

 

[kebabking]

god, can you imagine if they start doing that here?

it does read like something from a 70's banana republic - its just madness that a European state has got to the stage where it has to dip into ordinary savings and current accounts in order to pay its bills. i can't see how this can end in anything other than widespread civil disturbance, oh - and proper bank run over most of southern europe...

 

[Tankus]

Pension pots are a sitting target ......I would have thought this would have been the first port of call ...Its consequences are delayed

 

[Yuwipi Woman]

Cyprus banks euro tax bail-out is a small-scale smash-and-grab compared to Britain’s slow-motion bank robbery.

Outrage about the Cyprus banks euro tax bail-out should not be allowed to obscure the fact that millions of savers in British banks have already lost much more of the real value or purchasing power of their money to prop up financial institutions closer to home.

Savers in British banks and building societies have been stealthily robbed of more than £43bn of the real value of their savings since the Bank of England froze interest rates at 0.5pc four years ago.

http://blogs.telegraph.co.uk/financ...ompared-to-britains-slow-motion-bank-robbery/

 

[coley]

Some good comments here

http://www.bbc.co.uk/news/world-europe-21830794

 

[TruXta]

So what's the consensus on here? Is it a good or a bad thing? Irrelevant or relevant? Who gains and who loses?

 

[butchersapron]

So what's the consensus on here? Is it a good or a bad thing? Irrelevant or relevant? Who gains and who loses?

Hello, i'm too lazy to read a few pages.

 

[TruXta]

Hello, i'm too lazy to read a few pages.

Yeah, thanks for that everso helpful post.

 

[hipipol]

Bad thing
Everybody loses

Utterly stupid, thick as shit thing to do that can only cause harm in Cyprus and to a degree help fuck the rest of us even more than we are already being fucked

 

[butchersapron]

Yeah, thanks for that everso helpful post.

10 minutes you could have spent reading the thread.

 

[8115]

its just madness that a European state has got to the stage where it has to dip into ordinary savings and current accounts in order to pay its bills.

It is. Because the bailouts have largely been handled fairly smoothly, there hasn't been any widespread disorder, people forget that a bank collapsing would be a massive calamity. People would lose *all* their money if that happened (I think). And it's looked like happening several times in several countries recently. People think, it would never happen because people can't conceive of it. But without bailouts I reckon it could happen.

 

[butchersapron]

Hey guys, what do you think? is actually insulting, it assumes the conversation starts when you walk in the room.

 

[frogwoman]

i do have to ask what's going on when Sasaferrato is one of the most sensible posters on a thread. It's like people are just taking the idea of it being a tax and the $100,000 number at face value.

 

[TruXta]

Hey guys, what do you think? is actually insulting, it assumes the conversation starts when you walk in the room.

Oh get over yourself.

 

[TruXta]

10 minutes you could have spent reading the thread.

I have. It didn't exactly leave a clear picture. Anyway, I can't be arsed with you.

 

[butchersapron]

It is. Because the bailouts have largely been handled fairly smoothly, there hasn't been any widespread disorder, people forget that a bank collapsing would be a massive calamity. People would lose *all* their money if that happened (I think). And it's looked like happening several times in several countries recently. People think, it would never happen because people can't conceive of it. But without bailouts it could happen.

There hasn't been any widespread disorder? Handled smoothly? Judging by whose criteria? Handled by who? The people who can't afford medication?

Ok, let's allow your pro-bail-outs argument to stand, why must the bail-outs happen in this way on this place at this time?

 

[butchersapron]

I have. It didn't exactly leave a clear picture. Anyway, I can't be arsed with you.

It leaves a crystal clear picture. One that you, despite your apparent interest, can't be arsed with.

 

[hipipol]

It is. Because the bailouts have largely been handled fairly smoothly, there hasn't been any widespread disorder, people forget that a bank collapsing would be a massive calamity. People would lose *all* their money if that happened (I think). And it's looked like happening several times in several countries recently. People think, it would never happen because people can't conceive of it. But without bailouts I reckon it could happen.

They should never have been needed
The regulatory bodies and the Ploy-Tricksians got suckered
Aint them who payes though
"The one thing that America learned in the Great Depression is that to prevent debilitating bank runs, depositors need to be sure their holdings are safe. And if you need to extend government guarantees to provide that reassurance, then government bloody well better keep the banks on a short leash to make sure they don’t have to pay out on those guarantees all that often. The recklessness of letting financiers talk governments out of constraining bank activities is coming home to roost."
One of the standout comments on http://krugman.blogs.nytimes.com/2013/03/17/the-cypriot-haircut/

 

[frogwoman]

there's been disorder but not as bad as what could happen i guess. And there's no guarantee the next bailouts will even do what they're "supposed" to do.

 

[TruXta]

It leaves a crystal clear picture. One that you, despite your apparent interest, can't be arsed with.

Yeah, I saw that you have a crystal clear picture. Excuse me if I don't agree with everything you post on here. Have a good one.

 

[8115]

There hasn't been any widespread disorder? Handled smoothly? (judging by whose criteria? Handled by who? The people who can't afford medication?

Ok, let's allow your pro-bail-outs argument to stand, why must the bail-outs happen in this way on this place at this time?

I didn't necessarily say I'm pro-bailout. But I'm interested in the consequences of not bailing banks out, which aren't really discussed.

They take place in this way at this time because governments say, we no longer have enough money to meet our obligations in a safe way, to deliver public services and protect the banking industry (I think). Also something to do with the Euro means that countries bail each other out because they're more exposed to each other's risk (I'm also not 100% clear about this).