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 Replies: 162 / Views: 12,384 |
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Pillar of the Community
United States
3789 Posts |
this whole Cyprus thing was and is a huge YAWN.
no big deal, nothing to see, move along.
on to the next thing lol
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Valued Member
United States
380 Posts |
It's a yawn for anyone who isn't involved with it. Now they are going after pensions.
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Pillar of the Community
Australia
7096 Posts |
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this whole Cyprus thing was and is a huge YAWN.
no big deal, nothing to see, move along.
on to the next thing lol
No worries mate , just keep your head in the sand  Quote:
Europe is the test bed for future global financial plans. Watch everything that happens over there carefully and stay aware  |
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Valued Member
Canada
281 Posts |
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No worries mate , just keep your head in the sand lol, trout, you're such a diplomat. Personally, I had to abstain from commenting on that statement. I wonder how he'll feel when it happens to him? |
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Pillar of the Community
Australia
7096 Posts |
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lol, trout, you're such a diplomat. I would prefer the truth to diplomacy any day  |
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Bedrock of the Community
13014 Posts |
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No worries mate , just keep your head in the sand Why not it works for an Ostrich  |
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Valued Member
Canada
281 Posts |
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I would prefer the truth to diplomacy any day Absolutely. It's just a shame that so many cannot handle the truth. |
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Bedrock of the Community
United States
36841 Posts |
People never pay attention to what is happening unless it directly effects them. When that day comes, they don't understand why no one told them what was coming. I have given up telling many family members and friends what I see coming. They are going to have to learn the hard way.
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Bedrock of the Community
United States
36841 Posts |
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Valued Member
United States
380 Posts |
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People never pay attention to what is happening unless it directly effects them. When that day comes, they don't understand why no one told them what was coming. I have given up telling many family members and friends what I see coming. They are going to have to learn the hard way.
Sadly |
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Valued Member
United States
410 Posts |
Cyprus is not Portugal, Italy, Spain or any of the other troubled economies in the EU. Cyprus is the European equivalent of the Cayman Islands used by European to hide their wealth and avoid paying taxes in their home countries. The failed banks hold deposits worth 7 times the GDP of Cyprus so it is impossible for the Cyprus government to bail out their banks without help from the EU. So Cyrus wants money from the EU to bail out the rich guys that are hiding money and avoiding taxes in the EU. As you can expect, EU leaders aren't keen on bailing out the people that are avoiding paying taxes in their counties.
So far, the EU has rejected both attempts by the Cyprus government to screw their people and bail out the rich foreign investors. Germany has flat out refused to any deal that uses Cyprus pension funds to back bonds to bail out the banks and has rejected taxing insured depositors with balances less than 100K Euros. It will be interesting to see what happens tomorrow. I suspect that the Cyprus government will back down and accept a bailout package that protects the small insured depositors and writes down balances of the big offshore investors. Either that or the EU lets Cyprus fail.
As long as insured investors are protected, Cyprus shouldn't cause people to pull their money out of banks. The system will have worked like is is suppose to. Really this is not different than any other bank failure, the small insured investors are protected and the large uninsured investors lose some of their principal. That is what happens when banks fail.
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Pillar of the Community
United States
2335 Posts |
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Germany has flat out refused to any deal that uses Cyprus pension funds to back bonds to bail out the banks and has rejected taxing insured depositors with balances less than 100K Euros. The news I saw last week stated that accounts with less than 100k euros would be taxed(fined, assessed, whatever) at the rate of 6.5%. Accounts over that amount would be taxed at 9%. |
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Bedrock of the Community
13014 Posts |
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As long as insured investors are protected, Cyprus shouldn't cause people to pull their money out of banks. The system will have worked like is is suppose to. Really this is not different than any other bank failure, the small insured investors are protected and the large uninsured investors lose some of their principal. That is what happens when banks fail. That wouldnt cause panic for most insured investors but it would create a bigger problem. If the rich lose some of their money from a failure they wont be putting their money there anymore and they will in fact pull out of the cyprus banks at least. Which then leads the banks with a lot less money to lend out ect when their big accounts are gone. There would be consequences of the failure, though it is good that the Germans are making it clear they arent going to just bail out everyone forever unless they get smarter with their finances |
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Valued Member
United States
410 Posts |
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The news I saw last week stated that accounts with less than 100k euros would be taxed(fined, assessed, whatever) at the rate of 6.5%. Accounts over that amount would be taxed at 9%. That idea was proposed last week and rejected. Cyprus accepted a bailout this morning and the terms protect insured depositors with less than 100K euros. The EU has an insurance program that covers deposits up to 100K euros just like the US has the FDIC. Quote:
That wouldnt cause panic for most insured investors but it would create a bigger problem. If the rich lose some of their money from a failure they wont be putting their money there anymore and they will in fact pull out of the cyprus banks at least. Which then leads the banks with a lot less money to lend out ect when their big accounts are gone. There would be consequences of the failure, though it is good that the Germans are making it clear they arent going to just bail out everyone forever unless they get smarter with their finances The Cyprus bank failures will cause massive problems for the people and government of Cyprus. What I was saying is the Cyprus bank failures shouldn't cause normal people in the EU or around the world to lose faith in banks and take their money out. That was the premise of the OP, that the Cyprus bank failures may cause a shift to PM's and other hard assets due to lack of confidence in banks. |
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Pillar of the Community
United States
830 Posts |
Wow, now its 30%-70% of deposits over 100K. This is probably to spread to other PIGGS IMHO.
Edited by GoThunder
03/25/2013 11:21 am
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Replies: 162 / Views: 12,384 |
First Page
Posted 03/21/2013 11:09 pm
