Cyprus surprise - Cypriot depositors to take a 'haircut'

Prudent

HAMISH_MCTAVISH wrote: »

So it's more OK for the UK government to take your money when you have no say in it, just as long as they do it in a less transparent manner.

Interesting.

Tut tut Hamish you are being deliberately selective again. What I prefer about the UK method is that it does give me some degree of say through the kind of choices I make for purchases and investments.

Graham_Devon

HAMISH_MCTAVISH wrote: »

So it's more OK for the UK government to take your money when you have no say in it, just as long as they do it in a less transparent manner.

Interesting.

This is nothing like we have seen before Hamish.

In the UK, yes, we are seeing devaluation through inflation etc. However, we can all choose our own ways to deal with that.

This is a one off, overnight grab, ignoring guarantees on a specific set of people. A law had to be created to pull this off. Doesn't that tell you something? It's not like anyone could have even conceived it as a possibility.

Let me ask you a question, which hopefully you will answer truthfully.

Would you be happy if the UK had done this and removed such monies from your account? Would your posts here be the same?

Personally, from all your posts previous, I highly doubt it, and again, from your posts previously regarding the banks, I think you'd be absolutely seething.

I find it hard to figure out how anyone can back this up. The tax is one thing, but to do it in the way they have done is something else.

Losing_the_way

This is an interesting move. Certainly going to be interesting to see how this affect holdings of cash deposits across the globe come Monday.

The domestic banks can't operate online accounts as they'd have to close those down so that the levy can be paid.

This might be better in the long run as the banks are going to have to offer higher rates to any savers still wishing to retain paper balances.

HAMISH_MCTAVISH

Prudent wrote: »

What I prefer about the UK method is that it does give me some degree of say through the kind of choices I make for purchases and investments.

Except that's nonsense really.

Most people don't have the choice to buy less fuel, less essentials, or indeed find some way to reduce their tax liability on pensions, or the income they make through employment.

If avoiding tax was so easy, then the UK governments endless tax raids on massive segments of the population would be fruitless.

Obviously, they're not...

PaulF81

This one for me - law of unintended consequences.

I would be surprised to not see a run on Irish, Spanish or Portuguese banks as an almighty F. U. to the european central bank.

Hope the bailout fund is big enough to cover the mess.

ILW

HAMISH_MCTAVISH wrote: »

Do you find UK tax raids any less scary, just because they're more stealthy?

So far UK tax raids have been over a period to allow people to find alternatives. This is being done over a weekend whilst the banks are closed for withdrawals.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Let me ask you a question,

Of course I wouldn't be happy. Just as I'm not happy about all the increasing amounts in stealth taxes I pay each year here.

However I would much prefer the UK government was as transparent in taking what is far more of our money against our will as the Cypriots have been in this case.

Perhaps then all this misguided outrage would be put into perspective.

As you're already all being stung for far more than the Cypriots are, but are either too naive to realise it, or too complacent to care.

HAMISH_MCTAVISH

ILW wrote: »

So far UK tax raids have been over a period to allow people to find alternatives. This is being done over a weekend whilst the banks are closed for withdrawals.

Nonsense.

They're only effective because most people can't find an alternative.

And are carefully crafted that way for a reason.

umop_apisdn

All this indignation over the bank deposit confiscations in Cyprus, righteous as it is makes me smile, when one considers that a 7 or 10% annual haircut on cash and savings is routine in many if not most nations. This is due to the nature of our fiat, paper money, and resulting government-induced currency depreciation, aka "inflation". It was not long ago that UK inflation was at 4-5% in 2011 with interest rates on savings being close to zero. Instant 5% haircut. Any riots? No. Who cares about just rising prices?

harryhound

HAMISH_MCTAVISH wrote: »

We can print our own currency so do not need Eurozone bailouts.

melanzana wrote: »

Can an EU resident in the Eurozone open a bank account in the UK now?

Is if safe FGS even in UK!

Put it Under the mattress, or in the underfloor safe now!

Or Norway?.. Will they let us?

Where in the World does one have to pay the bank for holding your savings?
Did Mellon bank in the USA introduce such a measure? The Swiss did in the 1970's.
I seem to remember that Gordon Brown managed to devalue the pound by nearly 30%. in the process of being world saviour.

Ah the joys of coming up against "the limits to growth".