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Cyprus surprise - Cypriot depositors to take a 'haircut'
Comments
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grizzly1911 wrote: »We had no say in the "loans" to Ireland.
The UK did have a choice.
http://www.guardian.co.uk/business/2010/nov/22/ireland-bailout-uk-lends-seven-billion0 -
Graham_Devon wrote: »And savers are paying a heavy price for UK mortgage holders.
If the banks failed. Then savers would have lost their entire deposits.
The whole situation is interlinked.0 -
The collapse of the 1 = 8 fractional reserve banking system, feels like the reports of a nasty new killer disease with black pustules, to someone in medieval England.
An outbreak in Nicosia is safely far away on the edge of the known world; Dublin is a bit too close to home, only 10 to 14 days journey.
In 1348 the plague arrived in Europe, spreading from Cyprus to Florence...........
In France in 1350 the price of wheat had increased fourfold. (rubbish we all know the price of gold cannot devalue against corn futures)0 -
http://www.rte.ie/news/2013/0323/378028-cyprus-seeks-troika-approval-for-new-bailout-terms/
Looking increasingly likely they will take 25% of deposits over 100k.
25%........... stone the crows...0 -
Thrugelmir wrote: »The UK did have a choice.
http://www.guardian.co.uk/business/2010/nov/22/ireland-bailout-uk-lends-seven-billion
I am not so sure we did.
Interesting piece in that article:-
" He (GO) also argued that Britain could afford to ride to Ireland's rescue now, having "moved out of the danger zone" thanks to drastic spending cuts designed to reduce Britain's own record deficit.
Perhaps they will return the favour in a couple of years. We will probably need it more."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
http://www.rte.ie/news/2013/0323/378028-cyprus-seeks-troika-approval-for-new-bailout-terms/
Looking increasingly likely they will take 25% of deposits over 100k.
25%........... stone the crows...
Is it gonna be the shortest lived bailout ever though?
The country is in meltdown. I can't really see all those people desperate to get their cash out of banks now saying "ahh, well, its sorted now, all trust restored".
Seems to me any bailout would merely bailout a country that is completely and utterly bust with no where to go even with the bailout.
Edit: notice the 25% levy is now just on one single bank. Not the rest.0 -
This guy must have a few quid in cyprus, perhaps they can start by just taking all of that ...
http://www.bbc.co.uk/news/uk-21913356
(A conspiracy theorist's wet dream)0 -
Graham_Devon wrote: »Edit: notice the 25% levy is now just on one single bank. Not the rest.
So, someone with their money at a branch of Barclays in Cyprus loses 4% over 100K but those who've put money in the big Cypriot banks lose 20% in one and perhaps 40%+ in the other.
If this goes ahead (which seems implausible) then it would be rational and responsible for Spaniards/Greeks/Italians/Portugese/Irish to remove their money from locally owned banks and put it into retail accounts of foreign owned banks as a first step to protect their well-being. This would starve already hungry local banks of funds and liquidity requiring their central banks to be ever more reliant on the ECB.
If northern continental European countries want to destroy the periphery and control it completely this is a really, really, good plan!
The stupidity of this move matches anything done last weekend."The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.0 -
If northern continental European countries want to destroy the periphery and control it completely this is a really, really, good plan!
Luxembourg's banking sector is 24 times its GDP. Also Luxembourg maintains banking secrecy. So you wonder if this is the end of the banking crisis.0 -
So, someone with their money at a branch of Barclays in Cyprus loses 4% over 100K but those who've put money in the big Cypriot banks lose 20% in one and perhaps 40%+ in the other.
It was a bigger risk depositing money with a Cypriot bank rather than Barclays. Obvious really.
Shielding depositors from risk at all cost has turned out to be a flawed approach. It's similar to the arguments about investment bankers - make gains then there's a big bonus - make losses and the shareholders lose money.
What's surprising is that, as you say, this deal makes a stark distinction between the risks involved. The across the board levy of last weekend sent the message "be careful about who you bank with" but this one clearly says "remove all money from Portuguese, Spanish and Italian banks and put it somewhere else".
I can only think this idea has come direct from Cyprus to put pressure on Germany.0
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