So much for €100,000 protection - Cyprus bailout

talexuser

CLAPTON wrote: »

What exactly do people suggest ?

we are b!!!!!!d.

However, split retail from casino, start unwinding derivatives and credit swaps that no-one understands. Let insolvent businesses go bust in an orderly way, not like Lehmans. Put some CEOs in jail so the rest will think twice about their risk taking. I'm not a financial expert, and experts may tell me some of these things are not possible, but we cannot go on printing or stealing bailout funds.

We had a lot of talk about never letting a bailout happen again, and precious little action to make it a reality, years after the event.

The thing that sticks in the throat of most people is the people who ran their banks into the ground still get huge bonuses effectively paid by the rest of us (either directly or indirectly) when we get made redundant because our businesses don't deserve to be bailed out.

socrates

ChiefGrasscutter wrote: »

I have postulated much the same on the MSE Economy board
Russia bails them out and backstops the currency
Possibly even to the extent of a new currency converted 1:1 from their Euro holdings and linked in value to the rouble.
Bondholders can go swivel.
Banks are nationalised and immediately re-opened a la Iceland.
Russia gets access to/profits from the offshore oil/gas field.
Additionally to your observations now that the USA/UK are starting to play silly b**gers in Syria and the small soviet base at Tarteris in Syria looks untenable and its too small anyway: secure access to a strategic base on Cyprus surrounded by land you control in the Med' seems like a good idea.
Quite where Turkey figures in all this I've no ideas on...much less what Merkel and the EU would make of it.

You are forgetting one important point the British currently control the port to check all suspicious cargo - do you think they will just step aside?

talexuser

Pay enough, get the British chucked out by a new government?

socrates

talexuser wrote: »

Pay enough, get the British chucked out by a new government?

Really - maybe they will do the same in The Falklands

CLAPTON

talexuser wrote: »

we are b!!!!!!d.

However, split retail from casino, start unwinding derivatives and credit swaps that no-one understands. Let insolvent businesses go bust in an orderly way, not like Lehmans. Put some CEOs in jail so the rest will think twice about their risk taking. I'm not a financial expert, and experts may tell me some of these things are not possible, but we cannot go on printing or stealing bailout funds.

We had a lot of talk about never letting a bailout happen again, and precious little action to make it a reality, years after the event.

The thing that sticks in the throat of most people is the people who ran their banks into the ground still get huge bonuses effectively paid by the rest of us (either directly or indirectly) when we get made redundant because our businesses don't deserve to be bailed out.

how would splitting casino and rtail have helped
-Lehmans?
-B&B?
-Northern Rock?

If no-one understand derivatives and credit swaps why do you think this will help?

CEOs in jail might work Ok in Russia but here you normally have to actually break a law or two. What law have they broken that affects the overall economy?

Who exactly is 'stealing' bail out funds

And not letting bailouts again brings us back to the point that the only way you do that is make savers/depositors loose their money... which brings us back to (only) a 6% haircut (rather than a total wipe out)

talexuser

Without such reliance on borrowing BB and North Rock might not have gone bust in the first place.

The total of derivatives and swaps is unknown and larger than actual GDP in the world according to articles- Buffet's famous mass destruction weapons.

CEOs and boards should not oversee the bankruptcy of their firms and walk away with millions of firms money leaving the taxpayer to pick up the pieces.

Bailouts, QE, inflation and devaluation are stealing wealth from the people of the country.

Problem is too big to fail - insolvent businesses should fail and be replaced by better businesses.

CLAPTON

talexuser wrote: »

Problem is too big to fail - insolvent businesses should fail and be replaced by better businesses.

businesses can fail OK as just the shareholders are wiped out.

but letting banks fail means that ordinary people and businesses lose all their savings.

talexuser

Agreed, and that's the whole point of too big to fail, it should never get to that stage and have mechanisms to prevent it. States had Glass Steagall for 50 years and never had internal problems the extent of today (oil shocks were external). Deregulated and look where it got us.

Exo

CLAPTON wrote: »

What law have they broken that affects the overall economy?

Rigging the LIBOR rate in order to increase their profits and bonuses, which amounts to theft, either by deception or pecuniary advantage.

Rigging rates which change bank or mortgage rates will affect the economy.

CLAPTON

Exo wrote: »

Rigging the LIBOR rate in order to increase their profits and bonuses, which amounts to theft, either by deception or pecuniary advantage.

Rigging rates which change bank or mortgage rates will affect the economy.

maybe so: if you are correct then they should be prosecuted according to the law.

in the great picture they didn't actually cause the financial meltdown and make no difference to the situation in Cyprus or elsewhere