European Finance Ministers states Cyprius bailout now a template

Graham_Devon

A European Finance Minster has this afternoon stated that the bailout deal Cyprus got is now a template for future bailouts.

This has caused concern on the markets and even more concern that bank runs may now start in other countries.

What he's basically stating is that any future bailouts will see the savers getting a haircut before anyone else, including the European Stability Fund.

Spanish and Italian bond yields have risen in response, as Germany sets themselves up to receive cash from other nations into German banks. (Well....they can't lose can they!)

“If there is a risk in a bank, our first question should be, ‘Okay, what are you in the bank going to do about that? What can you do to recapitalize yourself?’ If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalizing the bank, and if necessary the uninsured deposit holders,” said Dutch Finance Minister Jeroen Dijsselbloem in remarks to Reuters and the Financial Times.

Going4TheDream

Shouldnt ALL Europeans' be out on the street demonstrating in absolute and utter rage at such actions?

Probably - but the EU leaders know that we wont, and that is exactly why they can get away with such theft on a grand scale.

I think we have passed the point now where there is any hope

shortchanged_2

Are the years of can kicking starting to rear its ugly head at last?

CLAPTON

Going4TheDream wrote: »

Shouldnt ALL Europeans' be out on the street demonstrating in absolute and utter rage at such actions?

Probably - but the EU leaders know that we wont, and that is exactly why they can get away with such theft on a grand scale.

I think we have passed the point now where there is any hope

while I agree that the small people need some protection, utter rage seems inappropriate.

basically you are saying that people with no savings (i.e. many taxpayers) should bail you out.

Going4TheDream

CLAPTON wrote: »

while I agree that the small people need some protection, utter rage seems inappropriate.

basically you are saying that people with no savings (i.e. many taxpayers) should bail you out.

Not at all, I would be more concerned that today it is people who have over €100k who perhaps don't have the protection guarantee, but next time will it be those who do have bank guarantee but the governments choose to overlook that to bail out countries?

I dont think the EU will stop at anything and I really don't believe that anyone can feel 100% confident that their money will be truly safe, guarantee or not?

CLAPTON

Going4TheDream wrote: »

Not at all, I would be more concerned that today it is people who have over €100k who perhaps don't have the protection guarantee, but next time will it be those who do have bank guarantee but the governments choose to overlook that to bail out countries?

I dont think the EU will stop at anything and I really don't believe that anyone can feel 100% confident that their money will be truly safe, guarantee or not?

' By 'their' money being safe' you means that my money is paying you.

Where else do you think the money is coming from?

exarmydreamer

http://www.dailymail.co.uk/money/markets/article-2298689/Ftse-close-fresh-alarm-

Shocking to think this might be rolled out across Europe, as a template.

Time to invest in a home safe.

PaulF81

Time to push as much cash into equity or alternatively bank overseas. Pirates, the lot of them.

grizzly1911

Eba

CLAPTON wrote: »

while I agree that the small people need some protection, utter rage seems inappropriate.

basically you are saying that people with no savings (i.e. many taxpayers) should bail you out.

CLAPTON wrote: »

' By 'their' money being safe' you means that my money is paying you.

Where else do you think the money is coming from?

I find it bizarre that you think it would be acceptable for joe punter to be held responsible for the failure of banks and government recklesness.
Would you be happy to have your bill money in your current account emptied too?
Perhaps troubled banks should foreclose on all mortgae assets first and or jake up interest rates to recompense depositors for their risk.

Deposits are just that, they are not risk funds like shareholders.

There has to be trust for depositors otherwise the system will not work. This isn't peer to peer lending.

wymondham

so, no interest to speak of on your money plus the danger of it going missing also...... are banks the best place for money these days?

How about investing in riot shields and water canon manufacturers... I predict you might do well!

CLAPTON

grizzly1911 wrote: »

Eba




I find it bizarre that you think it would be acceptable for joe punter to be held responsible for the failure of banks and government recklesness.
Would you be happy to have your bill money in your current account emptied too?
Perhaps troubled banks should foreclose on all mortgae assets first and or jake up interest rates to recompense depositors for their risk.

Deposits are just that, they are not risk funds like shareholders.

There has to be trust for depositors otherwise the system will not work. This isn't peer to peer lending.

well I didn't write that; maybe reread what I actual posted.

I did however point out that taxpayers will pay and that many taxpayers may have no savings of their own.

So joe public is held responsible as he is paying the bill.