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European Finance Ministers states Cyprius bailout now a template
Comments
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grizzly1911 wrote: »Bank deposits aren't investments.
Bank lending is risky. If you want a secure return buy Government gilts.
The whole reason we have this financial mess. Is that banks knew that Governments would bail them out.
Return comes at a risk.0 -
grizzly1911 wrote: »If they are willing to take it above E100k there is nothing to stop them reducng/removing that limit.
Depositors have no control over the shareholders and you cannot expect them to constantly appraise whether an institution is viable. The regulator should be liable they grant the license to show they are fit to trade.
Without depositors you don't have a bank that people can afford to use.
Deposits are in the main honestly earned and saved out of taxable income. Any unearned income is also taxed at the highest rate (or should be).
Why do you think they should have their money confiscated just because they have been prudent?
who is 'them'?
whatever have shareholders got to do with taxpayers bailing out depositors?
the 'regulator' is the taxpayer
I'm sure most depositors have earned their money honestly but then most taxpayers have come by their money honestly
why do you think the taxpayer should have their money confiscated ?0 -
grizzly1911 wrote: »Bank deposits aren't investments.
I take it you have a current account (in credit)? That is a deposit at a bank.
Of course savings accounts are investments...
Regardless who do you think should provide the funds to give to the savers to save them missing out?0 -
Graham_Devon wrote: »Worked well this Euro experiment didn't it.
Like how they are planning future bailouts, but still can't quite figure out the whole thing is an utterly failed project.
Are there any Pro-EU people left!?
We've had plenty of bank bailouts in this country but no-one would say that the grand experiment of trying to use sterling across the Union is an utterly failed project.
Cyprus didn't go bust because of the Euro or the EU - poor policy decisions by their government were much more significant.0 -
who is 'them'?
whatever have shareholders got to do with taxpayers bailing out depositors?
the 'regulator' is the taxpayer
I'm sure most depositors have earned their money honestly but then most taxpayers have come by their money honestly
why do you think the taxpayer should have their money confiscated ?
Cypriot banks were offering 3 times the savings rates available elsewhere. That was a decision made directly by the banks. Not by the European taxpayer.
This will merely speed up the division of the banks into retail and investment.
Unlikely savers will see high deposit rates ever again.0 -
@Clapton
The mess we are in is a collective mess.
The only thing a depositor has done is put some money by. It isn't the depositors fault they just happen to be an easy target.
They are no different to the person who has chosen to consume.
Shareholders invest and expect to get a return comensurate with that risk.
As a society we all benefit from the deposits placed. If people didn't deposit money people wouldn't be able to borrow cheaply including business.
In Cyprus businesses will fold, people will become unemployed, homeless etc. who picks up the bil for that at the end of the day?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Thrugelmir wrote: »Bank lending is risky. If you want a secure return buy Government gilts.
The whole reason we have this financial mess. Is that banks knew that Governments would bail them out.
Return comes at a risk.
Why should gilts be sacrosanct. If a government is bankrupt then what says they just don't wipe them out for non sovereign holders
Current accounts don't earn a return."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
So come on Grizzly, who should pay to save the Savers?0
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If we are going to suggest that savers are investors, then true savers (you know, your nurse, plumber, bus driver, teacher etc) that has little interest in banking should have somewhere they can place their money with no risk attached.
Investors make a decision to invest and take on that risk.
Savers don't make that decision. You can argue that technically they do, but it's a boring argument. One that could go on and on with the technicalities of everything in life. In effect all a saver is doing is putting money into a pot. They don't expect that pot to be swiped, and to be honest I don't think it's fair to expect your joe bloggs saver to make the decisions an investor will actively make through their own choices.
So maybe whats now needed is a change. Maybe that change should be simple low return, no risk accounts where all the money on deposit can be paid back to the saver if required.
Savers would then have a choice...the no risk, low return, very simple savings account, or savings accounts with risks attached offered by high street banks. People then have a choice. But I feel we all need somewhere we can put our money that is safe.0 -
grizzly1911 wrote: »@Clapton
The mess we are in is a collective mess.
The only thing a depositor has done is put some money by. It isn't the depositors fault they just happen to be an easy target.
They are no different to the person who has chosen to consume.
Shareholders invest and expect to get a return comensurate with that risk.
As a society we all benefit from the deposits placed. If people didn't deposit money people wouldn't be able to borrow cheaply including business.
In Cyprus businesses will fold, people will become unemployed, homeless etc. who picks up the bil for that at the end of the day?
sorry, I really don't understand what you are trying to say.
at the end of the day, who picks up the bill depends upon what happens.
you seem to think it should be the taxpayer but for some strange reason seem reluctant to actually say that
in Cyprus it can't be the Cypriot taxpayers via the government because the government has no money and can't print it like the UK
so that leaves savers in Cypriot banks and /or EU taxpayers0
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