So much for €100,000 protection - Cyprus bailout

buffman

Is there much difference between the Cypriot government's imposition of a near 10% tax on savings and the UK government/Bank of Englands' failure to reign in inflation (or actively pursuing high inflation)? The only difference is that the Cypriots were robbed overnight.

ColdIron

One difference is that the effects of inflation are well known and to some degree elective, there are actions you can take to mitigate it. The overnight burglary couldn't be avoided as it was announced after the banks closed. Also it's not as if the Cypriots are unaffected by inflation anyway

Most governments have gone to some length to protect depositors, indeed the Cypriots were told only a few days ago that this would not happen, now we see deposits deliberately targeted. This is without precedent

Glen_Clark

mark88man wrote: »

And the point is these extra interest rates are only available by the conscious assumption of risk in moving your money from UK to clearly riskier areas.

That is why I think it is false pleading to start complaining that a risk occurred in a risky place, and almost hypocritical to say that there should be no loss as the risks where not understood. if you are savvy enough to go looking for international investment opportunities you should be honest enough to take the pain when they unravel.

I did not put my money in a Cyprus, I only wish I had. Despite the haircut, it would still have earned more in real terms than in a British Bank because it would have been in Euros not Pounds, so not have been trashed by QE

DiggerUK

, or is there?

One of the prerequisites of a fiat currency, is confidence in the piece of paper in your cold, dead, hand.

I'd add, that being able to get your hands on it when you demand, is also pretty important.
..._

Glen_Clark

ColdIron wrote: »

indeed the Cypriots were told only a few days ago that this would not happen, now we see deposits deliberately targeted. This is without precedent

I thought that was par for the course in Banking.
Every British Mutual that converted itself into a Bank began by saying resolutely that they would not do so.
The Governor of The Bank of England has said repeatedly that inflation would fall below his official mandate of 2% - how else could he keep his paws on our savings :mad:

ColdIron

Ha. It's a bit like hearing such and such a person has the full confidence of the Prime Minister. Phase one of their demise

Glen_Clark

talexuser wrote: »

Gideon praised Ireland to the roof as the land to follow with low taxes and huge financial services industry just before the crash, and everything Labour did with the banks was too much red tape, the Tories wanting even more deregulation all round during those years.

"A GENERATION ago, the very idea that a British politician would go to Ireland to see how to run an economy would have been laughable. The Irish Republic was seen as Britain’s poor and troubled country cousin, a rural backwater on the edge of Europe. Today things are different. Ireland stands as a shining example of the art of the possible in long-term economic policymaking, and that is why I am in Dublin: to listen and to learn". - George Osborne ,The Times Feb 23 2006

Apart from supporting Cameron’s leadership campaign, does Osborne have ANY qualifications to be Chancellor of the Exchequer?

mark55man

Glen_Clark wrote: »

I did not put my money in a Cyprus, I only wish I had. Despite the haircut, it would still have earned more in real terms than in a British Bank because it would have been in Euros not Pounds, so not have been trashed by QE

And of course you would have now been the owner of Cypriot bank shares that you would have received in return, despite them being untradeable and unvaluable.

Saw a UK guy on TV who lives in Cyprus complaining. Clearly I know why he is complaining because 6.5% of your savings is hard to take (unless you are a government ha ha ha). However, his savings have presumably grown significantly more than that and the money may have originated in his labours in their bloated financial system.

So whilst I have some sympathy and understanding why people are complaining - I am not actually sympathetic.

DISCLOSURE: I have other investments in Greek assets (and I'm not talking moussaka) which I am expecting to get (short term) tanked by all this so please don't think I'm some little englander sneering from the sidelines

Glen_Clark

mark88man wrote: »

And of course you would have now been the owner of Cypriot bank shares that you would have received in return, despite them being untradeable and unvaluable.

Who said anything about buying Bank Shares?
I thought we were talking about deposits?

talexuser

Glen_Clark wrote: »

Apart from supporting Cameron’s leadership campaign, does Osborne have ANY qualifications to be Chancellor of the Exchequer?

Err....No.