Cyprus surprise - Cypriot depositors to take a 'haircut'

dryhat

I've just bought some shares in this company...

LINK

socrates

Would love to see what happens if they call the Germans bluff

Or better still specifically haircut all German Bond Holders and reduce the 6.75 and 9.9% accordingly

Graham_Devon

socrates wrote: »

Would love to see what happens if they call the Germans bluff

Or better still specifically haircut all German Bond Holders and reduce the 6.75 and 9.9% accordingl/y

Well, not many can see Germany allowing Cyprus to put the Eurozone back into a full blown crisis. Can you imagine it? A tiny country bringing the EU down?!

Just a case of who blinks first really. The threats of loss of jobs and the country basically shutting down, with a loss of all their money is the one the Cypriots are having thrown at them.

If the Cypriots shoot a bullet back, their threat could be bringing the Eurozone back into a full blown crisis mode.

The question then would be....would Merkel and co simply accept the crisis, especially with the upcoming elections, and let Cyprus go bust?

Can't see it myself. Many of those in the EU have publically distanced themselves from this bailout according to the BBC, not wanting to be any part of this and putting the focus firmly back on Merkel and LeGarde.

Graham_Devon

And you gotta feel for these people...

One guy on the news has just got the proceeds of a loan put into his account. This was to pay for his daughters tuition. By Tuesday, he won't have enough money to cover the tuition, but will have to pay the full loan back, including interest on the grab from the government.

Easy for people on here to say "well thats the risk you take", but come on. This is downright cruel.

Graham_Devon

Ha ha ha...

The government in Cyprus now plan to extend the bank holiday another day, so that Tuesday will also be a bank holiday.

Convinient or what!

This is getting ridiculous!

But uncertain it has the necessary votes, the government postponed an emergency parliamentary session Sunday by one day, while the cabinet petitioned the central bank to extend Monday's bank holiday by at least another day, a move that was likely.

http://online.wsj.com/article/SB10001424127887323639604578366482313616070.html

dryhat

You need to chill out a bit Dev.

Have a look at this..........

https://www.youtube.com/watch?v=K5R2JyU_MKg

Mrs_Bones

Graham_Devon wrote: »

Well, not many can see Germany allowing Cyprus to put the Eurozone back into a full blown crisis. Can you imagine it? A tiny country bringing the EU down?!

Just a case of who blinks first really. The threats of loss of jobs and the country basically shutting down, with a loss of all their money is the one the Cypriots are having thrown at them.

If the Cypriots shoot a bullet back, their threat could be bringing the Eurozone back into a full blown crisis mode.

The question then would be....would Merkel and co simply accept the crisis, especially with the upcoming elections, and let Cyprus go bust?

Can't see it myself. Many of those in the EU have publically distanced themselves from this bailout according to the BBC, not wanting to be any part of this and putting the focus firmly back on Merkel and LeGarde.

I also saw on the news that ministers in Germany were now trying to publicly distance themselves from this, yet it was them that insisted on it in the first place. Did they honestly think that they could get money taken out of peoples accounts and no one would complain or kick off about it. Also that people in other countries wound not take fright about how safe the money in their banks was now. They are even raiding childrens accounts.

Now certain people in the EU are trying to turn their heads and saying it's nothing to do with us??? There is talk that they are looking for ways of lessening the blow for people with low savings but it's too late, the damage has been done as the precedent of taking money from peoples accounts has been set.

They haven't even got the new law through the Cyprus parliament yet, mean while they have gone a head with the levy. If by chance this policy and new law is defeated and not passed by the government are they going to replace what they have already taken?

buglawton

IronWolf wrote: »

Switzerland has been the choice of many for a long time, they have a reputation of keeping their clients confidential.

Another option is to hold government bonds in a country that can be trusted to repay, like the US.

Failing all that, gold bullion stored in a safe place, with no paper trail back to you so the government dont know you have it.

Don't Swiss banks already charge negative interest rates?
http://www.theglobeandmail.com/report-on-business/international-business/european-business/big-swiss-banks-to-charge-fees-on-some-franc-deposits/article5924193/

matbe

buglawton wrote: »

Don't Swiss banks already charge negative interest rates?
http://www.theglobeandmail.com/report-on-business/international-business/european-business/big-swiss-banks-to-charge-fees-on-some-franc-deposits/article5924193/

Haven't looked at your thread but i'll wager its not minus 10 percent?

John_Pierpoint

When the guy next door loses his job, that is a down turn in trade.
When you lose your job, that is a recession.
When your wife loses her job, you finally realise its a depression.

The same thing seems to be happening with the "borrowing from the future" mountain of debt. We all know (because we have been reading this part of the forum) that banking is based on a con-trick, which makes bankers rich but unfortunately can be pushed too far by greed and incompetence, and so needs to be managed by the state.

The money carousel cannot work when bankers cannot find sustainable businesses in which to invest, especially when the states are continually trying extract taxes from it and use these on "worthy", vote buying, totally unprofitable, expenditure.
The carousel is kept turning by the injection of inflation.

There is a real possibility that enough people in the Mediterranean area will realise that their banking system is bankrupt and then the bank-run contagion will spread.

Are we going to see excited Latin temperaments this week or a "Keep calm and carry on" attitude displayed by the Japanese - in the face of a real physical disaster, when their lights browned out for want of nuclear electricity?

I wonder if the government of Cyprus had the good sense to talk to Iceland about a
plan B.