Cyprus surprise - Cypriot depositors to take a 'haircut'

John_Pierpoint

CLAPTON wrote: »

I]Luxembourg[/I high level of debts matched by high level of quality assets that generate high levels of cash flow make for a rich and wealthy life

Cyprus is bankrupt because it has no cash and can't sell its junk 'assets'

The had a little local difficulty with the European head office of The Bank of Cocaine and Conmen International, if I remember correctly.
Not terribly wonderful liquidation either - a friend of mine got away with never paying off his credit card.

Perhaps it was an illegal debt under sharia law?

antrobus

ChiefGrasscutter wrote: »

Anyway, back on topic.
The latest theory doing the rounds as to why the Cyprus bank's bondholders are not being "tapped" for money...

I think the reason why bondholders aren't being 'tapped' is because there ain't enough of 'em to make a difference. I don't think Cypriot banks issued that many bonds. They didn't need to.

ChiefGrasscutter wrote: »

.......is that the bonds have already been pledged as collateral to the ECB....

Can't see how that would work. Bonds issued by a bank are a liability, not an asset.

ChiefGrasscutter wrote: »

...Of course this does mean that if the Cyprus banks do collapse then they will take out the ECB with them....

The ECB has (apparently) provided €9bn of Emergency Liquidity Assistance to Cypriot banks. I don't think that the loss of €9bn (even if it did happen) would threaten the existence of the ECB.

John_Pierpoint

antrobus wrote: »

According to the Telegraph the opposite was the case - "Every shop along a strip on Archbishop Makarios Avenue in central Nicosia reported to have had not a single customer all day".

http://www.telegraph.co.uk/news/worldnews/europe/cyprus/9948914/Cyprus-Eurogeddon-deserted-streets-of-a-country-closed-for-business.html

.

Protecting their real assets - I would not be swapping anything for an embargoed currency if I could avoid it.

dryhat wrote: »

This is not about individual countries or their puppet politicians.

An organised crime syndicate has hijacked the economies of the world and are now holding its people captive with threats of destruction if we don't pay for the bills they have run up on our behalf.

We are all cypriots now and it is our right and indeed duty to stand up to these financial terrorists and demand our economy back.

If it takes pain and blood to achieve this then so be it.

I'm up for it and am prepared to fight for my children's future.

Let us hope this poster will get out of the second stage of grief and it will not all kick off.

If it does women might be trying to buy fuel with their wedding rings.

Anyone remember the 1970s:

Psst have you got any:
Candles?
Cooking oil - to make a substitute for candles?
Bog roll?
Pale p**s coloured foreign sugar?
etc.

Time to put some air in the tyres of the old push bike ?
A spare petrol can, so I can get a gallon from the first service area on the M4 ?
,

antrobus

CLAPTON wrote: »

high level of debts matched by high level of quality assets that generate high levels of cash flow make for a rich and wealthy life...

Yes, yes, I know. Luxemburg is different than Cyprus. Luxemburg is just a booking center, there are assets behind all of this debt. But at the same time, this looks like a very unstable situation.

http://www.businessinsider.com/europes-money-centers-2013-3

Just saying.

antrobus

Interesting speculation here;

The conspiracy theory, however, has it that Germany knew all along that the move would cause chaos, but wanted to create precisely such impossible conditions as a pretext for allowing Cyprus to crash out of the euro....A Cypriot eurozone exit would then be a starting point for a new eurozone made up of solvent, northern-European nations only, something that the German Chancellor, Angela Merkel, is under mounting domestic pressure to back.

http://www.telegraph.co.uk/news/worldnews/europe/cyprus/9949858/Cyprus-dreams-left-in-tatters.html

ILW

antrobus wrote: »

Interesting speculation here;

The conspiracy theory, however, has it that Germany knew all along that the move would cause chaos, but wanted to create precisely such impossible conditions as a pretext for allowing Cyprus to crash out of the euro....A Cypriot eurozone exit would then be a starting point for a new eurozone made up of solvent, northern-European nations only, something that the German Chancellor, Angela Merkel, is under mounting domestic pressure to back.

http://www.telegraph.co.uk/news/worldnews/europe/cyprus/9949858/Cyprus-dreams-left-in-tatters.html

I cannot see why they wanted all the poor insolvent countries in in the first place.

CLAPTON

the EURO is part of the federalist political dream; it had little to do with reality or economics

in the 'good' times it didn't matter; now we have bad times and it does matter

BobQ

antrobus wrote: »

Interesting speculation here;

The conspiracy theory, however, has it that Germany knew all along that the move would cause chaos, but wanted to create precisely such impossible conditions as a pretext for allowing Cyprus to crash out of the euro....A Cypriot eurozone exit would then be a starting point for a new eurozone made up of solvent, northern-European nations only, something that the German Chancellor, Angela Merkel, is under mounting domestic pressure to back.

http://www.telegraph.co.uk/news/worldnews/europe/cyprus/9949858/Cyprus-dreams-left-in-tatters.html

Are you suggesting this was a relatively inconsequential small scale experiment prior to the real thing with Spain?

grizzly1911

ILW wrote: »

I cannot see why they wanted all the poor insolvent countries in in the first place.

Possibly to squeeze their assets out of them, utilities and such like?

John_Pierpoint

All you nasty Cypriots are forgetting that the Germans have been through this charity business years ago. In spite of evidence to the contrary, they pretended that the poor nation had a currency equivalent to the mighty Mark.
They did a pretty good job by and large, but like all bankers they discovered that borrowers. lie and wheedle to get a loan and then a few months or years down the line get resentful and complain about "duty of care" and other such nonsense.
The Germans did not get a lot in the way of thanks and these beneficiaries were "kith and kin". They seem to have learned their lesson.


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