We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Cyprus

tomterm8
tomterm8 Posts: 5,892 Forumite
Part of the Furniture Combo Breaker
in Debate House Prices & the Economy
Two interesting facts:

1) Cyprus's banking assets are worth 835 percent of GDP,
2) Cyprus's second largest bank looks like it is about to enter "special measures" aka it is (possibly) bankrupt.

Just another interesting banking crises in the making. Looks like we are going to get another Iceland any day.
“The ideas of debtor and creditor as to what constitutes a good time never coincide.”
― P.G. Wodehouse, Love Among the Chickens
«1

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Write down of Greek government debt is a primary cause of the difficulties.

    A couple of billion of capital would correct the situation.

    So hardly the same problem that faces the main Europeans banks.
  • tomterm8
    tomterm8 Posts: 5,892 Forumite
    Part of the Furniture Combo Breaker
    On an international scale it might be small, on a local scale the estimates for this single bailout is 10% of GDP. I suspect that it may be possible that it isn't the only bank in trouble.

    It is like Iceland: not very significant internationally, but something interesting to watch as a case study.

    I can't see cyprus being able to deal with its problems on its own.
    “The ideas of debtor and creditor as to what constitutes a good time never coincide.”
    ― P.G. Wodehouse, Love Among the Chickens
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    tomterm8 wrote: »
    On an international scale it might be small, on a local scale the estimates for this single bailout is 10% of GDP. I suspect that it may be possible that it isn't the only bank in trouble.

    It is like Iceland: not very significant internationally, but something interesting to watch as a case study.

    I can't see cyprus being able to deal with its problems on its own.

    Part of EU. So like Eire banks will be bailed out. Will merely accelerate credit contraction in Western Europe.
  • michaels
    michaels Posts: 29,254 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I'm sure the Turks wouldn't mind mounting a rescue...
    I think....
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    michaels wrote: »
    I'm sure the Turks wouldn't mind mounting a rescue...

    Appear to have enough problems of their own.
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    tomterm8 wrote: »
    Two interesting facts:

    1) Cyprus's banking assets are worth 835 percent of GDP,
    2) Cyprus's second largest bank looks like it is about to enter "special measures" aka it is (possibly) bankrupt.

    Just another interesting banking crises in the making. Looks like we are going to get another Iceland any day.

    Watch for bailouts from Russian 'businessmen'. A lot of Russian business including pretty much all OTC share dealing is done via Cyprus.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    tomterm8 wrote: »
    1) Cyprus's banking assets are worth 835 percent of GDP,

    When RBS crashed. It was 250% of UK GDP.

    At end of 2011 despite 3 years of contraction is still a 100% of GDP.

    So UK banks collectively have a huge exposure.
  • vivatifosi
    vivatifosi Posts: 18,746 Forumite
    Part of the Furniture 10,000 Posts Mortgage-free Glee! PPI Party Pooper
    Generali wrote: »
    Watch for bailouts from Russian 'businessmen'. A lot of Russian business including pretty much all OTC share dealing is done via Cyprus.

    Interesting... Do you know the history of that Gen? I'm always fascinated by the circumstances that lead to such oddities.
    Please stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
  • Wookster
    Wookster Posts: 3,795 Forumite
    vivatifosi wrote: »
    Interesting... Do you know the history of that Gen? I'm always fascinated by the circumstances that lead to such oddities.

    McMa f i a by Misha Glenny. Really excellent book.
  • vivatifosi
    vivatifosi Posts: 18,746 Forumite
    Part of the Furniture 10,000 Posts Mortgage-free Glee! PPI Party Pooper
    Wookster wrote: »
    McMa f i a by Misha Glenny. Really excellent book.

    Thanks Wookster. I have his latest on my bookshelf at the moment, will have a crack at that after.
    Please stay safe in the sun and learn the A-E of melanoma: A = asymmetry, B = irregular borders, C= different colours, D= diameter, larger than 6mm, E = evolving, is your mole changing? Most moles are not cancerous, any doubts, please check next time you visit your GP.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture