butchersapron
Bring back hanging
Looks like the first planned theft is now going to happen. That is going to ratchet things right up.
Cypriot bank savers forced to pay towards Euro/IMF bailout
- Thread starter Sasaferrato
- Start date
TruXta
tired
Yeah, the fault-line's unzipping. I wouldn't live in Istanbul for love nor money, doesn't matter whether the building is new or old - I've had far too many conversations with Turkish engineers and architects saying almost every building has been built to substandard specs and then bribes have been taken by governmental/municipal inspectors to OK them. They've got some of the most stringent building codes in the world, but they rarely abide by them. Anyway, derail over.
TruXta
tired
Seems like the levy will be a bit different - under 100k deposits to be spared, 15% levy on deposits over 100k. Or have you heard otherwise?
You know what your trouble is? You're too willing to believe the best of people. It's probably cheaper for the owner to let the building be destroyed in the next local earthquake (or the one after that) and then rebuild it than pay to get it demolished beforehand.
butchersapron
Bring back hanging
Well, this is on the guardian liveblog and i didn't notice the 2nd line straightaway:
Confused entry there - if it doesn't include the insured depositors then it's not the original plan.
TruXta
tired
Right, yeah that's what I read as well. Bit confusing/misleading as you say.
ViolentPanda
Hardly getting over it.
ViolentPanda
Hardly getting over it.
About what you'd expect from Giles, to be fair.
ViolentPanda
Hardly getting over it.
All fodder for your book, I suppose.
Hannan is suggesting Cyprus go the Iceland route.
Personally, if they end up robbing bank depositor's money, I hope some of the disgruntled customers get their own back by offing some bankers and politicians.
They would be entirely justified.
Once the powers that be start arbitrarily robbing people's money and saying its legal for them to do so, then all laws become meaningless, and people are morally entitled to to what they want.
Hopefully some Russian clients might do this over there.
Giles..
They would be entirely justified.
Once the powers that be start arbitrarily robbing people's money and saying its legal for them to do so, then all laws become meaningless, and people are morally entitled to to what they want.
Hopefully some Russian clients might do this over there.
Giles..
TopCat
Putin fanboy
This is very illuminating. You support every aspect of the state and their laws until there is a threat to tax wealth then you advocate murder.
coley
Well-Known Member
Talks a lot of sense thon bloke.
What is being proposed goes beyond normal "taxing wealth" though, doesn't it? Way beyond.
Arbitrarily making a new law that says "if you have money in the bank, we are going to steal it" is not right, is it?
Giles..
gosub
~#
Taxing deposits over the 100,000 euro guarantee, to prop up the bank sort of makes sense, as you are going to lose all that money anyway, and the got more chance of getting some money out during the following unstoppable slow motion collapse than off the receivers at the end. BUT (a) Cypriot parliament still hasn't agreed to to do that and (b)what was initially put on the table an EU said was lawful shows up the whole guarantee as a sham anyway. The dancing on the head of a pin by the EU that this is all lawful may seem clever to them but its just destroyed any faith in EUropean banking that still existed.
Dimitris
Well-Known Member
They have decided to treat differently the deposits of each bank. The Popular Bank of Cyprus is being divided to a good and bad bank, all the deposits over 100k are going to the bad bank and will be returned to the depositors after a few years when the bad bank will be clear with a haircut of 30% to 40%. Basically they have lost their money.
The over 100k deposits of the Bank of Cyprus are being haircut by 25%.
All these apply to the deposits over 100k therefore if someone has deposited 120k at the Bank of Cyprus the extra 20k will be haircut by 25%.
The 3rd biggest bank of Cyprus, called Hellenic Bank, that belongs to the cypriot church, is not affected at all by all these.
The only thing that I have not understood by now is what if an account of 120k for example belongs to 2 individuals.... Is there a haircut on that or they calculate it as 60k per person ?
The Russıans you're worrıed about?
All I can say ıs ıt's a good thıng the Germans are a cıvılızed, democratıc natıon who would never start a European war over somethıng lıke thıs.
True. That's why I'm movıng to Bodrum.
coley
Well-Known Member
Why is the Hellenic bank being exempted? This isn't where the "establishment" tends to keep its dosh by any chance?
J Ed
Follow Back Pro Expropriation
Spanish banking levy next? http://www.presseurop.eu/en/content/news-brief/3569661-spanish-banking-levy-will-collect-3bn
I'd be shocked, I tell you, shocked.
coley
Well-Known Member
Aye, levied on the banks, like it won't be passed straight to the customers
gosub
~#
.
For 25percent of the >100k to be needed that's 15bn investment flight since January
Which also likely means if they had applied a stress test during the bank holidays, (which presumably they did to get the revised figure) they were already bust.
What's Cypriot law like on trading whilst insolvent? Just asking as a European taxpayer, given we are expected to find 10bn on top of deposit guarantee. Our 10bn buys time for one transaction presumably.
New emperor of the north pole to be crowned next week then....
For 25percent of the >100k to be needed that's 15bn investment flight since January
Which also likely means if they had applied a stress test during the bank holidays, (which presumably they did to get the revised figure) they were already bust.
What's Cypriot law like on trading whilst insolvent? Just asking as a European taxpayer, given we are expected to find 10bn on top of deposit guarantee. Our 10bn buys time for one transaction presumably.
New emperor of the north pole to be crowned next week then....
coley
Well-Known Member
The 10 Bn will give about enough operational banking time to allow all foreign investors time to transfer their remaining liquidity to somewhere Merkel & Co can't touch it.
coley
Well-Known Member
Not pissed, but trying, not in anyway informed on the intricacies of international bank fiddling, but from my reading of the situation the only real losers are going to be the Cypriots who for whatever reason happened to have at this particular time more than €100, 000 in their accounts?
gosub
~#
They were always going to be the losers, but now we've undermined the whole concept of guaranteed deposits, we are throwing 10bn of tax payers money to allow the emperor of the north pole the chance to get 75percent of his money (pushing in front of the Russian mafia who will get 100000 k plus receiver rates). Least we haggled the emperor up to 25pc against stuffing Joe everyman at 6pc so (he, she or it), would get 90pc
The ECB and the IMF have whatever the outcome pretty much ruined Cyprus's reputation as far as international banking goes. And i really can't see that there is anything to cheer about.The problem wasn't that there was too much "Dirty Money" in the system,the problem is that the accumulation of too much money in too few hands leads to speculative bubbles.It is something that manifests itself time after time throughout history.(south seas, Dutch bulbs,Sub-Prime etc.).
In Cyprus it manifested itself in banks speculating on a Greek tourist and leisure industry that is now flatlining sending what were prudent loans toxic.There is no way a bank can recoup its losses by taxing its depositors accounts because under the totally legitimate rules of Fractional Reserve Banking that money will have been lent out many times over.Bailouts unless written off will only add to the debt,and as Austerity measures imposed as a perquisite by the IMF bite it will lead to more loan defaults.
Fractional reserve banking was a Medieval solution to the problem of storage of large amounts of depositors wealth.(Full Reserve Banking).It underpins the whole international banking system,chasing away both "clean" and "dirty" money won't solve the problem, it will just manifest itself somewhere else in another speculative bubble.
In Cyprus it manifested itself in banks speculating on a Greek tourist and leisure industry that is now flatlining sending what were prudent loans toxic.There is no way a bank can recoup its losses by taxing its depositors accounts because under the totally legitimate rules of Fractional Reserve Banking that money will have been lent out many times over.Bailouts unless written off will only add to the debt,and as Austerity measures imposed as a perquisite by the IMF bite it will lead to more loan defaults.
Fractional reserve banking was a Medieval solution to the problem of storage of large amounts of depositors wealth.(Full Reserve Banking).It underpins the whole international banking system,chasing away both "clean" and "dirty" money won't solve the problem, it will just manifest itself somewhere else in another speculative bubble.
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