MSE News: EU deal spares small savers in Cyprus from bailout tax

sabretoothtigger

zerog wrote: »

As Cyprus uses the (new) Deutsche Mark, it might not necessarily be worth 6% less. Maybe prices will rise by 6%, but they could still all move to Germany.

Dont forget about France. I know Euro is good in comparison to many but its not going to give a fair return vs actual real world costs. Its not straightforward but the incline is down almost certainly

jimjames

SailorSam wrote: »

There was someone on Tv this morning, i never caught the whole story but he was in the middle of moving house. They'd sold their old house but 'cos of a problem in the chain had gone into rented property for just a few weeks until their new house is ready. I think he said they had 200k waiting in the bank, and was waiting to find out just how much they were going to lose, but doubted they'd now afford a new house.

Reading in the Guardian it appears that savers with one of the banks (Laiki) that have over £100k may lose the lot not just part of it as amounts over £100k will be put in the "bad bank" which may wipe out the entire capital.

If that is the case then it does bring a different perspective to the whole saga but the whole thing seems very opaque as little concrete info has been released.

steevo_h

A phrase you won't be hearing so much in the future "well that's money in the bank" to imply safety.

The whole banking system is full of fraud and most people would be very uncomfortable if they understood how it works (I appreciate many on here do understand perfectly).

Many people know that fractional reserve banking means a bank with £1 can lend out many times on the strength of that £1. What a lot of people don't realise is that when you put your money in the bank, that money becomes the property of the bank, and the account they give you in return, is a mere liability to that bank - no more than an IOU. I wonder how many people are aware of that, the banks certainly don't tell you, and even still refer to it as 'your money'.

People say save the banks because businesses depend on them and provide jobs etc etc. I get that, I just wonder whether a better use of the bailouts would be to let the banks that caused the trouble go to the wall, and then you could use the bailout money to compensate the depositors.

Glen_Clark

All explained here (click link to watch the movie through to the end)
http://www.youtube.com/watch?v=K5R2JyU_MKg&feature=youtu.be

innovate

The video does not exist.
What have I missed?

bigadaj

innovate wrote: »

The video does not exist.
What have I missed?

Didn't you put your credit card number in?

steevo_h

worked fine on my computer. Brilliant clip - almost too true to be funny.

What's the name of the film this is from as I've seen this clip a few times to make fun of a situation, but never seen the actual film it comes from.

SailorSam

I think what this will promote is a cash economy.
People aren't going to trust the Banks again so businesses will start doing cash work wherever possible, and keeping money under the mattress and away from the taxman, so the economies of some of these Countries will take a hit.

talexuser

Glen_Clark wrote: »

All explained here (click link to watch the movie through to the end)
http://www.youtube.com/watch?v=K5R2JyU_MKg&feature=youtu.be

Hilarious! especially saving for a bigger bunker.

jimjames

SailorSam wrote: »

I think what this will promote is a cash economy.
People aren't going to trust the Banks again so businesses will start doing cash work wherever possible, and keeping money under the mattress and away from the taxman, so the economies of some of these Countries will take a hit.

Kind of makes a mockery of all the suggestions that say "i don't want any risk so I'll shove my money in the bank"

With a 40% loss suggested on deposits in one of the banks you'd be better of putting your money into a selection of shares and suffering a low risk of loss!