Get yer money whilst you can...

[rynnor]

As I understood it, vast quantities of money in Cypriot bank accounts is being laundered. Simpler to just grab a chunk and flick two fingers than prosecute every case in a country that wants to ignore it.

Pretty much - its all Russian money - Cyprus was being used as an easy way to launder the money into the EU - its pretty shady. Its a shame normal people are getting caught up in it - hopefully they will modify it a bit for that.

 

[Ctuchik]

Not this time round but there is nothing to stop the government doing it again in a month. I don't have much in the way of savings but if I did and lived there I would be taking the rest out quick smart.

But all they are doing is biting themselves in the arse. If to many withdraw their savings the banks will be forced to ask for even more money to cover up for it. And IMF and co won't be as gentle the next time around (this tax is a demand from them by the way, not something the Cyprian government came up with).

And it's not just those banks on the line.

Yes the system is fucking retarded but it is what it is and there isn't much we can do about it at the moment. But what we can't do is shit like this because it's just causing even more damage down the road.

People need to open their eyes and look at the bigger picture, not just at their own selfish wants. Because right now i can't see a difference between them and the bank managers. They are both just looking after themselves without a care for those around them.

We can't demand a solution if we're part of the problem.

It's that simple.

 

[rynnor]

I actually dont think this has much significance outside cyprus - the markets dont seem to have reacted much.

 

[Scouse]

I actually dont think this has much significance outside cyprus - the markets dont seem to have reacted much.

Well, considering the suggestion of the European Central Bank and the IMF was to take depositor's money I think that the precedent they've set has incredible significance.

Central Bankers don't give a fuck about anyone.

 

[rynnor]

Well, considering the suggestion of the European Central Bank and the IMF was to take depositor's money I think that the precedent they've set has incredible significance.

Central Bankers don't give a fuck about anyone.

With respect it doesn't matter what they think but what the markets think and they dont seem unduly concerned so there you have it.

 

[Scouse]

With respect it doesn't matter what they think but what the markets think and they dont seem unduly concerned so there you have it.

Missing the point there rynnor.

I'm saying if Central Bankers think it's OK to do it to the population of Cyprus, why would they think any different about anyone else on the planet?

 

[rynnor]

Missing the point there rynnor.

I'm saying if Central Bankers think it's OK to do it to the population of Cyprus, why would they think any different about anyone else on the planet?

Not really - the big risk was contagion. Each bailout has been unique - I dont personally have an issue with depositors contributing to the rescue of their bank and thus their own financial security. Its what should have happened originally - bad banks should have gone bust.

 

[Job]

My mothers got 30k in a cypriot bank...well she did have...the ceb cannot basically throw two of the fundamentals of european banking in the bin without consequence..and that would be complete loss of confidence in the euro dream

 

[rynnor]

My mothers got 30k in a cypriot bank...well she did have...the ceb cannot basically throw two of the fundamentals of european banking in the bin without consequence..and that would be complete loss of confidence in the euro dream

She might be ok - its thought the final deal will protect small investors so she may lose nothing.

 

[Embattle]

In essence they need 16bn euros, 10bn will be a loan from IMF/EU and Cyprus has to decide how to get the other 6bn and they've decided to do it this way.

 

[Scouse]

400 billion euros in gas deposits?

Interesting...

 

[Wij]

Missing the point there rynnor.

I'm saying if Central Bankers think it's OK to do it to the population of Cyprus, why would they think any different about anyone else on the planet?

Unlikely as Cyprus was a very different case to most other countries, but the possibility of it will make bank runs more likely.

 

[Chilly]

She might be ok - its thought the final deal will protect small investors so she may lose nothing.

She's not an investor. Cash isn't an investment...

TBH it's the price you pay for living in a backward country. There's a reason the UK is expensive and heavily governed. Bank deposits are historically unsafe, governments are historically fragile and getting angry at rich people historically ineffective.

 

[rynnor]

She's not an investor. Cash isn't an investment...

TBH it's the price you pay for living in a backward country. There's a reason the UK is expensive and heavily governed. Bank deposits are historically unsafe, governments are historically fragile and getting angry at rich people historically ineffective.

Anyone with any sense is looking to move their money out of Irish/Spanish/Italian etc. banks now.

 

[DaGaffer]

Anyone with any sense is looking to move their money out of Irish/Spanish/Italian etc. banks now.

If you're a regular punter with less than €100K (or €200K in joint account) then there's actually no point in moving out of the Irish banks as the deposit guarantee scheme is a ring-fenced away from the any attempted raids by Government, the ECB or IMF, and the Irish do take their constitutional protections (as this is) very seriously. However, bigger investors like bond-holders won't have any protection on new investments from the end of this month (this was happening anyway before the Cyprus thing) so this may entail a run on the banks but its the right and proper thing to do as a bond holders have had years of warning that it was coming.

 

[Scouse]

bond-holders

Should have been the ones to take the fall for the Cypriot banks.


Funny that they didn't, eh?

 

[rynnor]

If you're a regular punter with less than €100K (or €200K in joint account) then there's actually no point in moving out of the Irish banks as the deposit guarantee scheme is a ring-fenced away from the any attempted raids by Government, the ECB or IMF, and the Irish do take their constitutional protections (as this is) very seriously. However, bigger investors like bond-holders won't have any protection on new investments from the end of this month (this was happening anyway before the Cyprus thing) so this may entail a run on the banks but its the right and proper thing to do as a bond holders have had years of warning that it was coming.

They got round it by calling it a tax thus not violating the deposit guarantee - pretty sure they could do the same in ireland.

 

[rynnor]

Should have been the ones to take the fall for the Cypriot banks.

Funny that they didn't, eh?

Not really - the peculiarity of cyprus banks is that they dont have any thus the need to go for depositors.

 

[Job]

Just grab a chunk is what they did but that throw away statement refers to a move that could be the final unravelling of the whole pile of shit that is europe...the rest of the world is standing with its mouth open while we have got so used yo this lunacy that we arent doing what we should and stockpile weapons and food

 

[Scouse]

Not really - the peculiarity of cyprus banks is that they dont have any thus the need to go for depositors.

Rubbish...

Yep, there were much smaller amounts than needed - but bondholders should be first in the queue.

 

[rynnor]

Rubbish...

Compared to normal banks that is nothing - cypriot banks are very oddly run to be polite...

 

[rynnor]

Poor bastards - the Germans are really screwing them over.

 

[Job]

You do realise this is Germany against Russia...hmmm seen that somewhere
before, can't quite put my finger on it.
Fighting over a small country, it's always how these things are played out.

 

[Embattle]

Poor bastards - the Germans are really screwing them over.

I'm sorry but how is this any fault of the Germans, I've seen this again and again the last few days in various media where Germany seems to get the flack over another countries financial problems because they naturally don't want a free for all on their wallet.

 

[rynnor]

I'm sorry but how is this any fault of the Germans, I've seen this again and again the last few days in various media where Germany seems to get the flack over another countries financial problems because they naturally don't want a free for all on their wallet.

Largely the pressure to wrap things up in a couple of days - its pretty unreasonable considering the complexity of such a bailout but the Germans wont give them any more time.

Cyprus banks are also in trouble largely due to the partial default of Greece (part of the German engineered Greek bailout) since their banks had heavily invested in Greek bonds.