European Finance Ministers states Cyprius bailout now a template

mcfisco

stinktankcynic wrote: »

The banks want to give you nothing as interest,

Isn't the point here that the Cypriot banks were paying relatively high rates to depositors?
And no one bothered to stop and ask themselves how that was possible given that they weren't running their own currency.

ILW

Are the bondholders still being let off?

wotsthat

Graham_Devon wrote: »

Aye.

You're still doing it though, even after the correction. I never said bank.

I said account.

And in doing so, I suggested one account would be fully protected. Other, higher paying accounts wouldn't be.

It's not hard, and you are turning to strawman stuff in an attempt to ignore what I have suggested

There's no such thing as a risk free bank. There's no such thing as a risk free account. There's no such thing as being fully protected.

The risk free account you're talking about doesn't and can't exist.

Risks can be shared, hedged and reduced but it doesn't matter whether someone is on your 'naughty' list or 'nice' list the risks they face will never be zero.

You're effectively wanting to privatise the gains (risk free money) whilst socialising the losses (taxpayer protects you at all costs). We're five/ six years in and you've still not worked out that the problems we face are due to an epic misunderstanding of risk.

No strawman here - you haven't got a clue.

wotsthat

ILW wrote: »

Are the bondholders still being let off?

No - bondholders are getting a lesson in risk management too.

StevieJ

Generali wrote: »

There is no such thing as risk free, even if you pay someone to look after your money.

Even more at risk as you are guaranteed to lose money e.g, inflation, cost of security.

shortchanged_2

wotsthat wrote: »

There's no such thing as a risk free bank. There's no such thing as a risk free account. There's no such thing as being fully protected.

The risk free account you're talking about doesn't and can't exist.

Risks can be shared, hedged and reduced but it doesn't matter whether someone is on your 'naughty' list or 'nice' list the risks they face will never be zero.

You're effectively wanting to privatise the gains (risk free money) whilst socialising the losses (taxpayer protects you at all costs). We're five/ six years in and you've still not worked out that the problems we face are due to an epic misunderstanding of risk.

No strawman here - you haven't got a clue.

I've got an idea then.

Shall we whack the mortgage rates up for all borrowers or would that be theft?

StevieJ

ILW wrote: »

Are the bondholders still being let off?

No.

Cyprus' rescue deal will raise €5.8 billion ($7.58 billion) from bondholders and depositors. The so-called bailing-in of the banks was a requirement to unlock an additional €10 billion of support from the European Central Bank and International Monetary Fund.

http://online.wsj.com/article/SB10001424127887324789504578382154064532558.html

spacey2012

Not the First time this has happened in Europe is it.
This time without a shot been fired.

mcfisco

shortchanged wrote: »

I've got an idea then.

Shall we whack the mortgage rates up for all borrowers or would that be theft?

Banks have the ability to do this any time they want, the mortgage borrowers also have the right to move it elsewhere if they don't like the deal on offer.

shortchanged_2

mcfisco wrote: »

Banks have the ability to do this any time they want, the mortgage borrowers also have the right to move it elsewhere if they don't like the deal on offer.

I know that, but what would happen if all the lenders decided to put their mortgage rates up to say 10%. Would that be OK and welcomed on here?