Cyprus surprise - Cypriot depositors to take a 'haircut'

The_White_Horse

it's the labour way. it's nobodies fault.

however, in this instance, it certainly isn't the "man in the street" with a few grand of savings' fault. (unless he is public sectore, then it is).

Thrugelmir

wymondham wrote: »

unreasonable yes, but it's the modern way!

Was.

Bubble's burst.

Graham_Devon

Thrugelmir wrote: »

Cyprus was happy to take all the benefits that an unregulated banking system brought.

But if you take a gamble and lose. Then its unreasonable to expect someone else to foot the bill.

Hmmm, I have to disagree with you here.

The politicians were happy to do this. Not so sure that Cypriots themselves can be blamed and therefore charged for the problems.

The problems stem right from the EU elite themselves. Everyone knew of these problems and the EU should have been regulating it.

I know we can't create fairy money, but I think it's wrong to suggest the Cypriots themselves are to blame for the banking structures.

It's like blaming the British for what Northern Rock did.

This whole thing is the fault of the Eurocrats riding the wave of perpetual debt and growth. The problems right now today, bank runs and the like are solely the fault of the EU and the colossal mess it's left trying to implement these ludicrous measures.

Did these intellectuals actually think there was ever a possibility that once this happened there wouldn't be a run on the banks?

socrates

Cyprus has now been asked to come up with 6.7bn Euros - not 5.8bn

More on that speculation mentioned at 16.20 that the troika has upped the amount it wants Cyprus to raise by €900m. MNI is now reporting that a government offical told journalists that troika officials have indeed hiked the contribution demanded of Cyprus to €6.7bn from €5.8bn.

He apparently explained that the troika wants to include a so-called safety cushion of €900m to reflect worsened fiscal conditions and expected capital outflows.

This 'cushion' could be considered in a tenth legislative bill that would focus on a bank deposit levy.

But, it is unclear where the extra money would come from.

Graham_Devon

LOL, so any work undertaken to try and solve the current problem has just been trampled all over by going back to demanding levy's from savers again.

Kinda just waiting for the default now.

Masomnia

Time they did an Iceland imho.

Thrugelmir

Graham_Devon wrote: »

Not so sure that Cypriots themselves can be blamed and therefore charged for the problems.

So you would be happy to contribute yourself?

That the UK's contribution (your tax) to to the IMF is paid to Cyprus to keep their banks afloat.

Thrugelmir

Graham_Devon wrote: »

It's like blaming the British for what Northern Rock did.

Who is paying for the cost of NR? Still very much exists. Someway to go before being wound up.

Thrugelmir

Masomnia wrote: »

Time they did an Iceland imho.

UK mortgage holders are still paying for the UK's bail out of savers.

Graham_Devon

Thrugelmir wrote: »

So you would be happy to contribute yourself?

That the UK's contribution (your tax) to to the IMF is paid to Cyprus to keep their banks afloat.

Not sure I would.

Default could be a better option.

It's certainly better than continual bailout after bailout. There is no evidence that the bailouts so far and the money spent has made Europe stronger or alleviated any of the problems.

Maybe the problem is just too big to sort without a reset in some way?