Cyprus surprise - Cypriot depositors to take a 'haircut'

socrates

Thrugelmir wrote: »

And the Irish people themselves what have they had to ensure?

I have no idea - but I never heard of any savers/investors/bank account holders having their money blocked and then taken

The reality is this is a direct attack on Russian money - clean or not - by the EU/Germany - with potential go-ahead by the Americans

Plus at the same time gauge how a haircut on bank accounts is perceived by Europe as a whole

Thrugelmir

socrates wrote: »

I have no idea - but I never heard of any savers/investors/bank account holders having their money blocked and then taken

Agreed. But the Irish Government have had several austerity budgets. With a population a quarter the size of Eire. Would the Cypriot people accept 4 times the cuts? Or reduction in salary etc. I doubt it.

socrates

Thrugelmir wrote: »

Agreed. But the Irish Government have had several austerity budgets. With a population a quarter the size of Eire. Would the Cypriot people accept 4 times the cuts? Or reduction in salary etc. I doubt it.

Thats the point they have NOT been given the option



Its raid the bank accounts (remember the IMF suggested 40%) - raise 6bn Euros and come back to us - and then we will see what we can do

All due to toxic debts for loans relating to Greece

HAMISH_MCTAVISH

socrates wrote: »

Thats the point they have NOT been given the option

And if the option is take a 6.75% haircut.... or.... have the banks fail, the economy plummet, unemployment soar, and taxes rise until the pips squeak, what do you think the vote would be?

Would Cypriots really be so keen to cut off their nose to spite their face?

I doubt the average street protester has any idea of just how unimaginably bad the consequences will be for them if this goes as pear shaped as it looks like it will.

socrates

HAMISH_MCTAVISH wrote: »

And if the option is take a 6.75% haircut.... or.... have the banks fail, the economy plummet, unemployment soar, and taxes rise until the pips squeak, what do you think the vote would be?

Would Cypriots really be so keen to cut off their nose to spite their face?

I doubt the average street protester has any idea of just how unimaginably bad the consequences will be for them if this goes as pear shaped as it looks like it will.

We were sold to the British by the Turks

We were sold back to the Turks by the British

We were sold out by the Greeks and their toxic loans

We are about to be sold out again because of our Gas Reserves

What do the people think?

Only time will tell...

socrates

http://www.businessweek.com/articles/2013-03-21/europes-cyprus-crisis-has-a-familiar-look#r=rss

Another realistic perspective

Graham_Devon

HAMISH_MCTAVISH wrote: »

And if the option is take a 6.75% haircut.... or.... have the banks fail, the economy plummet, unemployment soar, and taxes rise until the pips squeak, what do you think the vote would be?

Would Cypriots really be so keen to cut off their nose to spite their face?

I doubt the average street protester has any idea of just how unimaginably bad the consequences will be for them if this goes as pear shaped as it looks like it will.

Get with the times Hamish. You were threatening this would have happened by Monday.

It hasn't. It might still, but times have changed. A levy won't change anything. The bak runs will still happen regardless.

One things for certain now, the banks there are fubbared. Bank runs are all but written in. That would happen anyway, regardless of whether savers saw a 6% cut. So for the people there, the option is bleak either way.

Graham_Devon

Personally, unless they come up with a way to kick the can....I think this is it for Cyprus.

Everyone seems to be demanding cash. On the news tonight there are stories of traders not being able to get stock as their suppliers are demanding cash. No one trusts the banks anymore. They can't assume that the money will ever get to them.

It's all breaking down.

Even with a bailout and can kicking, the trust is gone. I don't know how you get that back.

Limiting cash withdrawals to protect the banks is fine, but it society cannot function correctly and business can't do business, it falls down anyway.

We could see the first proper default soon. I just can't quite figure out whether the can will be kicked and if so, how, and what that will mean to the country now that it's gone this far.

noh

socrates wrote: »

Yes - I believe that was 85bn

Where is the 85bn euros coming from?
The money will come from:

• the Irish Republic itself will contribute 17.5bn euros to the overall fund from its cash reserves and, controversially, the National Pension Reserve Fund
• 22.5bn euros from the International Monetary Fund (IMF)
• a similar amount from the European Union's European Finance Stability Mechanism
• 17.5bn from the European Financial Stability Facility, which is funded by eurozone governments
• bilateral loans from the UK, Sweden and Denmark.

I do not see any haircuts there for savers

Ireland had to come up with 17.5bn from its own resources.
There were many other conditions.

http://www.fixmytax.com/index.php/fix-my-tax-blog-2/17-what-the-imf-eu-bailout-for-ireland-means-in-detail.html

socrates

noh wrote: »

Ireland had to come up with 17.5bn from its own resources.
There were many other conditions.

http://www.fixmytax.com/index.php/fix-my-tax-blog-2/17-what-the-imf-eu-bailout-for-ireland-means-in-detail.html

How many depositors lost money?