Cypriot bank savers forced to pay towards Euro/IMF bailout

[ViolentPanda]

Bond holders protected, savers are not

Crash JP Morgan buy silver

Unless you're buying your silver in reasonable quantity, you're going to pay a premium to buy and a premium to sell, if you're actually buying bullion rather than a "promise to deliver".
I wonder if Max has an interest in a bullion brokerage or two?

 

[ViolentPanda]

It is a bunch of unelected self serving cunts, a cesspit.

No, it's a bunch of cunts, half of which are unelected, the rest of whom are. At least get it right when you foam at the mouth.

 

[yield]

Well, we're told that the money will be "repatriated" to the EU, anyway.

And the IMF?

I think this could cause a bank run.

 

[ViolentPanda]

You do realise the initiators of legislation are not elected? That the EU parliament is like tits on a bull, merely there to put a veneer of democracy on it.

They are a bunch of vastly overpaid self-serving cunts. A cesspit.

How does any of your witless jabber in any way contradict what I said, you apoplectic old sporran-sniffer?

 

[ViolentPanda]

And the IMF?

Same thing, as they're both "guarantors" of bailout funding.

 

[butchersapron]

IMF vs ECB:

Mr. Rehn was the first to take the floor with a specific proposal. To raise funds, Nicosia should impose a special levy on deposits, taxing accounts of less than €100,000 at 3%, those up to €500,000 at 5% and those above at 7%.

Such a "solidarity levy"—the brainchild of Thomas Wieser, an Austrian who chairs technical discussion among euro-zone finance officials, and Mr. Asmussen—could avoid a straight "haircut" on deposits, which they feared could be too destabilizing for Cyprus and the rest of Europe. The tax would be applied to all Cypriot banks, not just the two in deep trouble.

Versus

But Ms. Lagarde had something else in mind. The IMF chief presented a much more radical plan, in which deposits above €100,000 in Laiki and Bank of Cyprus would have been cut by between 30% and 40%. The owners of senior bonds in the two banks would also have faced losses. That plan would limit the international bailout to €10 billion and raise some €7.5 billion from depositors.

=

Levies of 6.75% on all deposits up to €100,000, and 9.9% above that level were settled upon.

 

[coley]

And the IMF?

I think this could cause a bank run.

I think it going to be an interesting morning in Ireland, Spain and Portugal, poor Greece is buggered beyond redemption anyway. northern rock was just a small taster for whats about to happen

 

[gosub]

Unless you're buying your silver in reasonable quantity, you're going to pay a premium to buy and a premium to sell, if you're actually buying bullion rather than a "promise to deliver".
I wonder if Max has an interest in a bullion brokerage or two?

It's the vat on silver that isn't on gold that puts people off. Paper promises to buy are at the end of day just paper. Building next to the savoy does a walk in service for actual bullion, prices start at just over £130 for coins - atsbullion

 

[Kaka Tim]

A tad melodramatic, Tim.

Where's the hyper-inflation, for a start?

I was thinking more of the psychological shock to the middle classes - something like this where you see your lifes savings arbitrarily raided by the government destroys peoples faith in the system - thats what made me think of 1920s germany.

 

[FNG]

Unless you're buying your silver in reasonable quantity, you're going to pay a premium to buy and a premium to sell, if you're actually buying bullion rather than a "promise to deliver".
I wonder if Max has an interest in a bullion brokerage or two?

I was thinking along similar line about the mirror groups old City Slickers column.

 

[FNG]

Well, we're told that the money will be "repatriated" to the EU, anyway.

Technically if they are using depositors money to fund the bailout in the first place it's really just a neo colonialist power grab innit.

 

[FNG]

From what I've been able to glean, I'm not sure there's much of a state in Cyprus to be cut. The essential (such as the water imports) can't be cut, and it's not as if they enjoy a well-developed welfare state, so taxation/levying/robbing the general population to pay for political miscalculations and wastage seems (to the pols, anyway) the only way to go.

There are substantial undeveloped Gas deposits that are being earmarked as further collateral against the debt.Privitisation of water (if still in state hands)is highly likely
Both are things the IMF have form on

http://www.globalexchange.org/resources/wbimf/facts
http://www.cyprus-mail.com/commerce-and-industry/gas-export-now-much-more-urgent/20130315
http://citizensimon.blogspot.co.uk/2011/06/water-human-right-or-imf-cash-cow.html

 

[FNG]

Double post

 

[junglevip]

Unless you're buying your silver in reasonable quantity, you're going to pay a premium to buy and a premium to sell, if you're actually buying bullion rather than a "promise to deliver".
I wonder if Max has an interest in a bullion brokerage or two?

Just get it of ebay.

EDIT:

When I were a lad.... The currency of choice was cannabis resin. More widely accepted than mastercard and had a bit of kudos. Price was a bit volatile but hey, it worked very well

 

[Citizen66]

They are a bunch of vastly overpaid self-serving cunts. A cesspit.

No different than the cunts you vote in though.

 

[Tankus]

They all are
Any queues yet?

 

[FNG]

Bank holiday today, the Cyprus mail was interviewing people at ATMs over the weekend withdrawing fairly limited amounts.I think the decision was made to semi freeze accounts on Friday so any withdrawals made subsequently would still be liable for taxation.

 

[teqniq]

Methinks the Russian mafia may be a tad upset:

Vladimir Putin blasts Cyprus savings tax ahead of vital vote

Putin blasts Cyprus savers tax
The Russian government has just blasted Cyprus's bank levy, piling more pressure on Nicosia ahead of this afternoon's vote on the bailout.

Vladimir Putin's official spokesman, Dmitry Peskov, told reporters in Moscow that the president is very concerned about the tax on savers.

Peskov said Putin had held a meeting on the situation in Cyprus this morning, where he was deeply critical of the plan:

"Assessing the possible decision of imposing additional tax by Cyprus on deposits Putin said that this decision, if taken, would be unfair, unprofessional and dangerous."

Wealthy Russians own a substantial chunk of total deposits in Cyprus -- and eurozone officials were determined to make them share the pain of the bailout (given their concerns over money-laundering within the Cypriot banking system).

 

[gosub]

http://graphics.thomsonreuters.com/BV/Cyprus.html


cost of doing what you would expect, ie safe guarding deposits up to 100,000EUro to not render the pan EUropean FSCS trashed costs the major savers 15.26%.

Presumably worked out on stressed tested numbers a few months back, guessing there has been a fair amount of capital flight since then.

 

[FNG]

Electric,Telecomunications and Port authority to be sold off,despite electral promises to the contrary
www.akel.org.cy/nqcontent.cfm?a_id=8663&tt=graphic&lang=l3

 

[butchersapron]

Forbes (or at least a couple of their contributors) not holding back

1)

probably the single most inexplicably irresponsible decision in banking supervision in the advanced world since the 1930s.

It is time for plain words. The ultimate source of Europe’s financial malaise is Germany. The German financial establishment was complicit from the beginning in the inflating of some of the bubbles in the afflicted nations. Now it is not only disowning its role in causation but, by forcing austerity on national governments and refusing to allow more than token inflation of the euro, it is turning the knife in those nations’ wounds.

2) Cyprus Bailout: Welcome To Another Great Depression

 

[Tankus]

Bank holiday today, the Cyprus mail was interviewing people at ATMs over the weekend withdrawing fairly limited amounts.I think the decision was made to semi freeze accounts on Friday so any withdrawals made subsequently would still be liable for taxation.

Sorry ...I was thinking more of the Piigs ......Cyprus is done and dusted now .....a thin veneer of a working government and economy until the bailouts run out

 

[butchersapron]

What does "done and dusted" mean then?

 

[Barking_Mad]

From 1994.

 

[gosub]

From 1994.

So that's UK opponents of the glorious project xenophobes, the Greeks workshy, and cypriots gangsters... Suppose the mass unemployment in Spain and Italy is just collateral damage

 

[bi0boy]

I'd be 'comfortable' with the €100,000 cutoff I keep suggesting. Yes, for people paying less than that it is unfair.

Apparently the Germans and the IMF agreed with you:

​

German Finance Minister Wolfgang Schaeuble said he and the International Monetary Fund had been in favour of "respecting the deposit guarantee for accounts up to 100,000" euros. He said it was the Cypriot government, the European Commission and the European Central Bank that had decided on the levy terms and that "they now must explain this to the Cypriot people".​

​

Apparently they are currently negotiating down the percentage that those with up to 100K will have to pay, not sure they will get it to zero though.​

​

 

[Tankus]

What does "done and dusted" mean then?

The Islands economy has had its plug pulled ....... don't you think

Focus of attention is now firmly back on the rest of the banks and "nations" solvency within the eurozone ......Cyprus only stays open until the EU pulls the finance ...It doesn't really matter which way the Cypriot government vote ....(Unless your a Cypriot )...........Its now been shown that personal deposits can be raided within the Eurozone

German Chancellor Angela Merkel stated that all depositors in Cypriot banks should share the responsibility of bailing out the state.
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.”

Merkels message wasn't for the Cypriots was it ?
The Greeks alone are € 285bn plus writes offs and counting ....... what's just another €10bn to this lot ?.....why risk the whole eurozone with such a solution ? ...The coming bank deposit removals across the Piigs are going to far exceed €10bn , dont you think ?

Its an island fire sale , Russia buys its naval base in the Med on the cheap,and its the Germans who get the proceeds partly in gas , which Merkel needs now its nucs are closed .... The French are out of the game ...its now all about the Germans ...The electorate are getting inflation twitchy (Gold repatriation in place of valium )

Dunno

Maybe we could send Gordon Brown , he'll save them

 

[butchersapron]

The Islands economy has had its plug pulled ....... don't you think

What does done and dusted mean? What does the Islands economy has had its plug pulled mean? Seriously - can you outline what you mean by this claims?

 

[Tankus]

What does done and dusted mean? What does the Islands economy has had its plug pulled mean? Seriously - can you outline what you mean by this claims?

Focus of attention is now firmly back on the rest of the banks and "nations" solvency within the eurozone ......Cyprus only stays open until the EU pulls the finance ...It doesn't really matter which way the Cypriot government vote ....(Unless your a Cypriot )...........Its now been shown that personal deposits can be raided within the Eurozone
Merkels message wasn't for the Cypriots was it ?
The Greeks alone are € 285bn plus writes offs and counting ....... what's just another €10bn to this lot ?.....why risk the whole eurozone with such a solution ? ...The coming bank deposit removals across the Piigs are going to far exceed €10bn , dont you think ?

Its an island fire sale , Russia buys its naval base in the Med on the cheap,and its the Germans who get the proceeds partly in gas ,

Its a message ....And those who are giving it are not to bothered about the common man , if they don't have a vote where it counts ....

 

[butchersapron]

Right so you can't say what you mean. They are just glib phrases.