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Time to take your money out of the Bank.

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Rakshasa72
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18 Mar 2013, 7:21 am

http://www.guardian.co.uk/business/2013 ... ut-markets



ruveyn
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18 Mar 2013, 12:24 pm

Rakshasa72 wrote:
http://www.guardian.co.uk/business/2013/mar/18/cyprus-bailout-markets


Which banks?

ruveyn



Rakshasa72
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18 Mar 2013, 12:48 pm

Quote:
Eurozone finance ministers demanded on Sunday that Cypriots pay up to 10% of their bank deposits in exchange for a €10bn (£8.5bn) bailout, prompting panic across the island as people rushed to cash machines to withdraw their savings.

That caused traders to dump shares across Europe, on fears it sets a dangerous precedent that could trigger bank runs in other eurozone countries.

Mohamed El-Erian, the chief executive of Pimco, the world's largest bond investor, said: "In Europe, [the Cyprus bailout] could well undermine the recent tranquil behaviour of depositors and creditors in other vulnerable European economies – in particular Greece, Italy, Portugal and Spain."


For those that don't want to click the link. Basically why would you keep your money in a bank with sub 1% interest rates when you stand a chance of loosing it to a greedy government. You'd be better off keeping it in your mattress.



uwmonkdm
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18 Mar 2013, 1:23 pm

This is old news, I haven't kept more than my student loan payment for the month in the bank for a long time.



LabPet
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18 Mar 2013, 1:26 pm

ruveyn wrote:
Rakshasa72 wrote:
http://www.guardian.co.uk/business/2013/mar/18/cyprus-bailout-markets


Which banks?

ruveyn


Well, my bank for one 8O Applies to the Euro-zone and plenty of banks are thus affected.


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Woodpecker
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18 Mar 2013, 2:34 pm

I think that the money grab is deeply wrong and also very bad for the banking sector and society in general.

It is going to seriously harm confidence in the banking sector, it is also morally very wrong. I think it is a legalised robbery.


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trollcatman
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18 Mar 2013, 5:06 pm

Woodpecker wrote:
I think that the money grab is deeply wrong and also very bad for the banking sector and society in general.

It is going to seriously harm confidence in the banking sector, it is also morally very wrong. I think it is a legalised robbery.


Of course this money grab (one time savings tax) sucks, but what is the alternative? The Cyprus government is broke and the other EU countries are under no obligation to bail them out. To use your phrasing, forcing taxpayers in other countries to pick up the tab is also legalised robbery.



auntblabby
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18 Mar 2013, 7:58 pm

expecting the good people of cyprus to collectively take it up the yinyang is also morally wrong, they are certainly entitled to transfer all their money to the bank of serta.



kouzoku
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18 Mar 2013, 7:59 pm

8O



auntblabby
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18 Mar 2013, 8:36 pm

kouzoku wrote:
8O

:huh:



Tequila
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18 Mar 2013, 9:14 pm

At the UKIP meeting I was at tonight it was suggested that anyone who has considerable amounts of cash in Spanish/Italian/etc. banks remove it and move it to Gibraltar or a non-EU country.



Tequila
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18 Mar 2013, 9:15 pm

trollcatman wrote:
Of course this money grab (one time savings tax) sucks, but what is the alternative?


If it happens once, it can easily happen again. Very, very silly move, especially as lots of the other eurozone countries in Southern Europe are in a seriously bad way.



Tequila
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18 Mar 2013, 9:17 pm

auntblabby wrote:
expecting the good people of cyprus


It will really affect Russians who are domiciled in Cyprus for tax reasons.



flamingshorts
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18 Mar 2013, 11:50 pm

Ultimately the fractional reserve banking system relies on a more or less continuously increasing money supply. This devalues the money more than interest paid but it is not so obvious. So this theft or tax or whatever is happening continuously.

Another point to note is that presently all currencies are imaginary with no actual value. So the entire banking industry is just making book entries of something that does not exist. I can't figure out why the whole system has not imploded long ago.



auntblabby
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19 Mar 2013, 12:25 am

flamingshorts wrote:
Another point to note is that presently all currencies are imaginary with no actual value. So the entire banking industry is just making book entries of something that does not exist. I can't figure out why the whole system has not imploded long ago.

because it is in the majority's interest to keep right on pretending that all those mudpies are real.



trollcatman
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19 Mar 2013, 10:01 am

Tequila wrote:
At the UKIP meeting I was at tonight it was suggested that anyone who has considerable amounts of cash in Spanish/Italian/etc. banks remove it and move it to Gibraltar or a non-EU country.


The 100k guarantee is only worth as much as the individual member state responsible for it. A 100k guarantee by Germany is not the same as one by Cyprus. All the foreigners who put money in Cyprus banks made a bet, and they lost.

Tequila wrote:
trollcatman wrote:
Of course this money grab (one time savings tax) sucks, but what is the alternative?


If it happens once, it can easily happen again. Very, very silly move, especially as lots of the other eurozone countries in Southern Europe are in a seriously bad way.


The alternative is that taxpayers from other member states have to pay the difference (5.8 billion). It's difficult to tax voters to pay non-voters. I'm surprised they got away with it for all these years, the aid for Greece and recently the recapitalisation of Spanish banks. All of these were very unpopular in the Netherlands and other states.