Cyprus surprise - Cypriot depositors to take a 'haircut'

antrobus

Sampong wrote: »

The Euro staying intact begins to look less unlikely with each day that passes. It is an economic disaster and the sooner it goes down the plughole the better.

That would be one point of view. Currently it appears to me that the German government holds a different view.

antrobus

meljm2 wrote: »

I knew this would happen

Britian is next

Since the UK isn't even in the Euro, it would appear highly unlikely that the ECB would be in a position to impose such a deal, even if all our banks were bust.

grizzly1911

The_White_Horse wrote: »

not starve and suffer, get paid a wage commensurate to the earnings of the country, rather than having to force the country to borrow continiously to fund them and their massive pensions.

Perhaps the country should only provide third world services, with no cut in taxes, to balance the books and you simply pay to top them up.

Pensions that they have contributed to during their working life, that they are going to contribute even more from April for poorer benefits. Don't forget many never get to see those benefits. The fact the government choose to use those contributions to aid their cash flow than make proper provision isn't the contributors fault.

Many in the NHS haven't had a pay increase in 6 years, work longer hours and have been forced to accept 24/7 365 working to boot.

I don't dispute their is waste in the public sector but it is not those at the coal face that need to be challenged all the time.

grizzly1911

I wonder when salaries tend to get paid in Cyprus.

Perhaps drawing it out for another week may result in a bigger haircut?

cepheus

Cyprus in perspective

.....there isn’t a Cypriot who did not know their country was being used as a tax haven. People can be excused for not knowing that in the UK, but not in Cyprus; there everyone knew........

Let’s though, for a moment compare that with what is guaranteed in the UK in the event of bank failure – which was what Cyprus was facing. Here we guarantee deposits to £85,000. Above that it’s total wipe out time – a 100% levy.

A capital levy in this case on those with some wealth seems to me to be reasonable......Remember we saved banks in the UK to preserve the wealth of the wealthy at cost to the rest of us.

Thrugelmir

cepheus wrote: »

Remember we saved banks in the UK to preserve the wealth of the wealthy at cost to the rest of us.

If our banks had gone under. Then our money would have disappeared to. House prices would have crashed, literally. UK banks are international not domestic.

RBS balance sheet was 1.5 times the UK's annual GDP in 2008.

grizzly1911

cepheus wrote: »

A capital levy in this case on those with some wealth seems to me to be reasonable......Remember we saved banks in the UK to preserve the wealth of the wealthy at cost to the rest of us.

I think you will find the wealthy are paying the price to keep you in low interest rates, to service your debt and the inflation to erode it.

cepheus

Thrugelmir wrote: »

If our banks had gone under. Then our money would have disappeared to. House prices would have crashed, literally. UK banks are international not domestic.

RBS balance sheet was 1.5 times the UK's annual GDP in 2008.

The rich occasionally love Socialism, but only for a day every few decades.

The remainder of the time we are exploited with Capitalism, and the rich return to moaning about the taxes and central government that saved their filthy hides.

A house price crash would make most people richer in buying power, since most people up shift or rent. The only ones hit would be down-shifters and the BTL businesses.

Thrugelmir

cepheus wrote: »

A house price crash would make most people richer in buying power, since most people up shift or rent. The only ones hit would be down-shifters and the BTL businesses.

I don't think you understand the implications of banks going under. The impact on individuals and small businesses. Like them or not. Fully functioning banks are a necessity to conduct trade these days.

LisbonLaura

Stick a pin in a rogue EU state without a local anaesthetic & all hell breaks loose because of sovereignty issues.

Whereas under a general anaesthetic, Rothschild's UK branch (cutely named 'The Bank of England') plunders the UK peasantry for more than most will ever have (QE £67,000 each so far), & you get: "Mustn't grumble"; "Turned out nice again".