Cypress in Default

[piasabird]

Cypress is probably in Default and there is just not enough money to back up what is in the bank. My guess is that many people may lose all their money if no solution is found. I predict a run on all Cypress banks and a complete collapse. This could be a big problem for the Euro if banks start failing.

http://news.yahoo.com/cyprus-closes-eu-bailout-u-turn-levy-011411731--business.html

Imagine what you would do if all your money was in the bank and all you had was a debit card and the bank closed for 2 weeks. Could you survive?

 

[unokitty]

Imagine what you would do if all your money was in the bank and all you had was a debit card and the bank closed for 2 weeks. Could you survive?

Wouldn't like it. But survival wouldn't be a problem.

Last hurricane I rode out on the Texas Gulf Coast, didn't have power for 5 days didn't have traffic lights for almost two weeks. Not having the Internet sucked...

Through, the whole thing I was giving away canned food. Wasn't worried about money.

People in Texas take care of each other. Might have been different if I was somewhere else.

Having said that, I do have empathy for the average person in Cyprus. I'd much rather deal with a hurricane than a bank crisis.

Uno

 

[mshan]

I think issue is that Cypress is money laundering operation for Russian oligarchs and Germany doesn't want to bail them out.

From what I heard on tv, 30% tax on above $100,000 insured accounts was balked at because it would offend Russian oligarchs., so they went with 10% tax and tried to include under $100,000 accounts, too.

 

[nehalem256]

I am betting all the people in Cypress wish they had traded in their euros for bitcoins now

 

[HamburgerBoy]

It's spelled Cyprus, fuck.

 

[2timer]

It's spelled Cyprus, fuck.

No, the OP wasn't referring to the island of Cyprus, he was talking about the pormanteau of Cyber and Express.

 

[Jhhnn]

Just another example of how scum floats, at least in the world of high finance...

It's the old pump and dump, over and over again.

 

[DCal430]

I think issue is that Cypress is money laundering operation for Russian oligarchs and Germany doesn't want to bail them out.

From what I heard on tv, 30% tax on above $100,000 insured accounts was balked at because it would offend Russian oligarchs., so they went with 10% tax and tried to include under $100,000 accounts, too.

Most of the people that tax would have affected were Cypriots not Russian Oligarchs.
'
Also there is no real proof of that claim except for some so called claims from people.

In fact their is very strong evidence that the proposal for everyone's deposit to be "taxed" came from TROIKA it self, not Cyprus.

 

[Jaskalas]

Cyprus conceded on Saturday to a one-off levy on deposits over 100,000 euros in a dramatic U-turn as it raced to satisfy European partners and seal an 11th-hour bailout deal to avert financial collapse.

Stealing from bank accounts seems to have passed.

 

[Albatross]

It doesn`t help the Euro at all,especially with Griss close to bankruptcy.

 

[LTC8K6]

I am betting all the people in Cypress wish they had traded in their euros for bitcoins now

TPTB have their eye on bitcoin and the like, as well.

 

[Greenman]

I'm not sure I follow this. The Cyprus banks invested heavily in Greece, lost pretty much everything, and now wants to skim 20% off the top of everyone's bank account so they can then borrow enough money from Germany to cover their losses?
How is this better than the bank simply folding?

I simply don't understand finance at this level.

Much googeling leeds me to think that the banks should have been allowed to collapse. They owe more than their GDP, they have to pay absurd interest rates, and they were stupid enough to invest heavily in a country that was in itself floundering in debt.

My next stupid question is, why do governments always see borrowing as the solution to being to far in debt?

 

[Doppel]

Imagine what you would do if all your money was in the bank and all you had was a debit card and the bank closed for 2 weeks. Could you survive?

Survive? Yes. Pay for things? Not really, a few years ago I had a few grand kept in the house but now it's down to $50

I simply don't understand finance at this level.

Apparently neither do those running the banks and/or government in these now-buggered countries.

 

[Oric]

Is there a specific reason to call Cyprus as Cypress ?

 

[sunzt]

When your computer's a mess, call Cyber Express!!!
http://cyberexpressohio.wordpress.com/

 

[DucatiMonster696]

They need to cover the depositors as much as possible and everyone else is going to have to eat crow. Any other way will destroy all faith with governments in the EU and the ECB and their ability to keep their word. Allow a run on the banks and let them fail once depositors have been secured. There is no forestalling the inevitable pain of the correction which MUST occur here. If they (the EU) rescue these banks they will just end up keeping the maligned cancer that are these Cypriot banks going like blood sucking vampires who will in the end turn on the peasants living below them again.


Edit: Oh wait nevermind it seems like they went ahead and made depositors eat crow so to quote Charlton Heston in Planet of the Apes:

.::gasp::. ".....We finally really did it."

There should be absolutely no trust in the banking system in Cyprus, the EU or anywhere else now that they have set this precedence.

 

[Darwin333]

I think issue is that Cypress is money laundering operation for Russian oligarchs and Germany doesn't want to bail them out.

From what I heard on tv, 30% tax on above $100,000 insured accounts was balked at because it would offend Russian oligarchs., so they went with 10% tax and tried to include under $100,000 accounts, too.

No, the issue is they need a fuckload of money they don't have so they are quite literally stealing it from peoples bank accounts.

I can't imagine this will help the banks much, if I was a foreigner and they just took 10% of my money on a whim I would damn sure be withdrawing the rest.

 

[WelshBloke]

I'm not sure I follow this. The Cyprus banks invested heavily in Greece, lost pretty much everything, and now wants to skim 20% off the top of everyone's bank account so they can then borrow enough money from Germany to cover their losses?
How is this better than the bank simply folding?

I simply don't understand finance at this level.

Much googeling leeds me to think that the banks should have been allowed to collapse. They owe more than their GDP, they have to pay absurd interest rates, and they were stupid enough to invest heavily in a country that was in itself floundering in debt.

My next stupid question is, why do governments always see borrowing as the solution to being to far in debt?

For the average Cypriot?

Would you rather lose 10-20% of your savings or 100% of your savings?

 

[DucatiMonster696]

I'm not sure I follow this. The Cyprus banks invested heavily in Greece, lost pretty much everything, and now wants to skim 20% off the top of everyone's bank account so they can then borrow enough money from Germany to cover their losses?
How is this better than the bank simply folding?

I simply don't understand finance at this level.

Much googeling leeds me to think that the banks should have been allowed to collapse. They owe more than their GDP, they have to pay absurd interest rates, and they were stupid enough to invest heavily in a country that was in itself floundering in debt.

My next stupid question is, why do governments always see borrowing as the solution to being to far in debt?

Because they know must people won't agree to tax hikes to be able to afford the services government wants to offer to them (unless government offers to tax that "other guy") and government (which includes politicians, government officials, etc and their supporters) loves make people dependent on them so that it (government) can expand its power over individuals people's lives. In the end if you don't end up with a police state you end up going bankrupt.

 

[DucatiMonster696]

For the average Cypriot?

Would you rather lose 10-20% of your savings or 100% of your savings?

You make the error of assuming this shit isn't going to happen again and again and again. Hell one would of assumed that periphery EU nations like Cyprus who stood by and watched Greece burn financially would of secured their banks but reality has proven otherwise. The cancer of bankrupt banking is spreading because governments refuse to allow these banks to simply fail and so it (the ill effects of mal-investments) spreads.

 

[WelshBloke]

Most of the people that tax would have affected were Cypriots not Russian Oligarchs.
'
Also there is no real proof of that claim except for some so called claims from people.

In fact their is very strong evidence that the proposal for everyone's deposit to be "taxed" came from TROIKA it self, not Cyprus.

I don't think that theres any doubt that theres a butt ton of Russian money in Cypriot banks. Its big news in Russia.

I also think that the tripartite committee doesnt really care how Cyprus raises the money as long as they raise it.

 

[WelshBloke]

You make the error of assuming this shit isn't going to happen again and again and again. Hell one would of assumed that periphery EU nations like Cyprus who stood by and watched Greece burn financially would of secured their banks but reality has proven otherwise. The cancer of bankrupt banking is spreading because governments refuse to allow these banks to simply fail and so it (the ill effects of mal-investments) spreads.

Yeah thats all very well but if your a Cypriot at the moment what would you rather?

That the banks were allowed to fail and you lose all your money or theres a bail out and you lose 10-20%? At least a bail out is going to give you a chance to stash some.

 

[DCal430]

I don't think that theres any doubt that theres a butt ton of Russian money in Cypriot banks. Its big news in Russia.

I also think that the tripartite committee doesnt really care how Cyprus raises the money as long as they raise it.

There is big money, but it isn't the majority. It is around 30% of the money.

There is still significantly more Russian money in Switzerland than Cyprus, much more.

 

[DucatiMonster696]

Yeah thats all very well but if your a Cypriot at the moment what would you rather?

That the banks were allowed to fail and you lose all your money or theres a bail out and you lose 10-20%? At least a bail out is going to give you a chance to stash some.

ECB could of rescued depositors along with the Cypriot government and allowed investors and bondholders to eat the loss. In the end however Cyprus and its government bent a knee to the ECB whose only interest has now been revealed and that is to save investors over depositors. Congratulations EU you have a central banking system which has revealed its true blooding sucking form. Anyways the joys of fractional reserve banking, fiat currency and all its manipulations at the behest of central banks, etc continue to keep on giving.

 

[WelshBloke]

There is big money, but it isn't the majority. It is around 30% of the money.

There is still significantly more Russian money in Switzerland than Cyprus, much more.

Theres a fair amount.

How much is in Swiss banks is fairly irrelevant to the issue though.