Cyprus surprise - Cypriot depositors to take a 'haircut'

sheffield_lad

worldtraveller wrote: »

Surely this will end up being yet another case of the EU basically tweaking things slightly and then saying "You will vote again and YOU WILL VOTE YES THIS TIME!"

I agree, but the problem is so will the Cypriots, what would you do if you had savings in a Cypriot bank come thurs am just in case?

I also recon we will see further rises against the Euro (currently up £1 = 1.17euro), as this has another crisis written all over it.

grizzly1911

As BBC comment notes the name of the Cypriot Bank Chief is ironic.

The Cyprus central bank chief, Panicos Demetriades,

http://www.bbc.co.uk/news/world-europe-21842966

Graham_Devon

Have to say, I'm really glad that they voted against it.

Well done those politicians. This was just too much.

dryhat

As BBC comment notes the name of the Cypriot Bank Chief is ironic.

The Cyprus central bank chief, Panicos Demetriades,

http://www.bbc.co.uk/news/world-europe-21842966

The chief of the bank of cyprus is on leave from his post as a lecturer at Leicester university.

http://www2.le.ac.uk/departments/economics/people/pdemetriades

Fantastic.



You REALLY couldn't write this 5h1t

sheffield_lad

Graham_Devon wrote: »

Have to say, I'm really glad that they voted against it.

Well done those politicians. This was just too much.

but what is the alternative?

what do you think will happen to the banks especially come Thurs am when people are queuing down the street.

It was not fair but hard choices have to be made and this 'tax' ensured 40% was coming from abroad.

They should have voted yes with the amendment to protect folk with less than 20k in the bank. IMO

Graham_Devon

howee wrote: »

but what is the alternative?

what do you think will happen to the banks especially come Thurs am when people are queuing down the street.

It was not fair but hard choices have to be made and this 'tax' ensured 40% was coming from abroad.

They should have voted yes with the amendment to protect folk with less than 20k in the bank. IMO

Some are now looking at the alternative of going bankrupt and leaving the Euro, and going back to their own currency.

Will be hard now, but may turn out better in the long term. Ths levy wouldn't have been the end, it couldn't have been.

Look at Greece. They haven't got any better....they've simply declined at a faster rate, regardless of the first, second, third bailout etc.

sheffield_lad

Graham_Devon wrote: »

Some are now looking at the alternative of going bankrupt and leaving the Euro, and going back to their own currency.

Will be hard now, but may turn out better in the long term. Ths levy wouldn't have been the end, it couldn't have been.

Look at Greece. They haven't got any better....they've simply declined at a faster rate, regardless of the first, second, third bailout etc.

but give them a vote and they will vote anything but leaving the Euro!!!

There would be bigger riots with that outcome no matter if we think its better for them or not.

Like Greece they need to take the not so nice medicine and the next time a politician tells them that retiring at 50 is fine question them.

Graham_Devon

howee wrote: »

but give them a vote and they will vote anything but leaving the Euro!!!

There would be bigger riots with that outcome no matter if we think its better for them or not.

Like Greece they need to take the not so nice medicine and the next time a politician tells them that retiring at 50 is fine question them.

I agree.

If they have to take money from people, they need to do it legally. It's always going to upset people. Obviously no one wants money taken off them.

Maybe it's time for an EU wide tax of some sort.

I just don't think the way they devised the scheme now voted against was in any way justifiable. Any crisis which now takes place is solely the doing of the eurocrats who came up with this ludicrous idea.

The threats of "do this or X, Y and Z" will happen are boring. In the end the EU becomes a bit like the boy who cried wolf. Maybe one day they wil actually carry through their threats, but if they are going ot threaten, they can't keep backtracking.

The way they have done this has done a great deal of damage eurozone wide. It's achieved nothing. It's a complete shambles.

An orderly default will allow everyone to know where they are, recovery to take place faster and and ending to this complete farce. I'm not saying it's something I want to see, but I don't see any other option other than simple extend and pretend, which is what we've seen now for the last 5 years.

They will probably now have to come up with a way of imposing restrictions on the amount of money anyone can withdraw to avert a complete and utter disaster, bought about by their own bungling.

wotsthat

Interesting few days ahead. Note it's a rejection of the depositor levy and not the bailout per se.

Can't help thinking Germany might have found a country they're willing to play chicken with.

Open the banks on Thursday and let it play. Good luck with the Cypriot pound - a 6.75% haircut will look like the stuff of dreams.

EDIT: Wookster PPR'ed - that's not right is it?

Graham_Devon

wotsthat wrote: »

EDIT: Wookster PPR'ed - that's not right is it?

Seems so :think:

Weird place round here!