Eurozone will collapse...
23-03-2013, 19:09
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#1186
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Remoaner
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Re: Eurozone will collapse...
Quote:
Originally Posted by Sirius
However they now know that if they need to they can force a country to dip into peoples bank accounts, now they have crossed this line what will be next ?
I am so glad we are not in the Eurozone. Its a poison chalice unless you are one of the elite members.
The Euro elite will be rubbing there hands together in glee now. All that extra money coming in via interest on the bailout.
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OK so what would you have preferred to happen?
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23-03-2013, 19:11
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#1187
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Re: Eurozone will collapse...
Quote:
Originally Posted by Osem
So it's bank deposits now, how long before (if this economic mess endures) it's other investments or assets? Pensions, homes, shareholdings etc. It's long been obvious to me that when Brown's economic muck finally hit the fan and the inevitable bust happened, it'd ultimately be those who'd been prudent and saved who'd bail out those who were living the high life, spending what they didn't have and running up debt.
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I think we should get some perspective here
we are screwed
---------- Post added at 19:11 ---------- Previous post was at 19:09 ----------
Quote:
Originally Posted by Damien
OK so what would you have preferred to happen?
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let cyprus go bust .Let the people move their money to safer banks
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23-03-2013, 19:12
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#1188
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Remoaner
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Re: Eurozone will collapse...
Quote:
Originally Posted by martyh
let cyprus go bust .Let the people move their money to safer banks
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Where would they get the money from? The banks were about to go under?
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23-03-2013, 19:14
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#1189
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cf.mega poser
Join Date: Jun 2003
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Re: Eurozone will collapse...
Quote:
Originally Posted by Damien
Where would they get the money from? The banks were about to go under?
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This. Presumably, most affected people would have lost a lot more than this 20% if Cyprus had gone bust?
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23-03-2013, 19:18
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#1190
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Remoaner
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Re: Eurozone will collapse...
Quote:
Originally Posted by danielf
This. Presumably, most affected people would have lost a lot more than this 20% if Cyprus had gone bust?
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Well that's my understanding. It's possible I've misunderstood but the majority of the bailout was to save the country's two lagest banks.
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23-03-2013, 19:23
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#1191
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cf.mega poser
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Re: Eurozone will collapse...
Quote:
Originally Posted by Damien
Well that's my understand. It's possible I've misunderstood but the majority of the bailout was to save the country's two lagest banks.
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Yes, this is my understanding as well. At least it's a lot more consistent with the banking guarantee. Deposits over 100,000 euros are always at risk from bank failure, and those who have more should therefore spread it. Those who haven't or couldn't will have to cough up, but things could/would have been worse for them if the banks had failed.
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23-03-2013, 19:24
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#1192
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Re: Eurozone will collapse...
Quote:
Originally Posted by Damien
Where would they get the money from? The banks were about to go under?
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my understanding was that it was the government that needed the bailout from the EU ,the EU said yes you can have one but only if there is a levy on deposits held in Cypriot banks .What has been mentioned on news reports is that the cypriot banks where/are awash with money from Russian billionairs who used the banks to launder their money so i don't think the banks where skint or where would the levy on deposits come from
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23-03-2013, 19:29
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#1193
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cf.mega poser
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Re: Eurozone will collapse...
Quote:
Originally Posted by martyh
my understanding was that it was the government that needed the bailout from the EU ,the EU said yes you can have one but only if there is a levy on deposits held in Cypriot banks .What has been mentioned on news reports is that the cypriot banks where/are awash with money from Russian billionairs who used the banks to launder their money so i don't think the banks where skint or where would the levy on deposits come from
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Hmm, fair point on the cash. However, the point of the levy (as I understand it) was to stop the deficit exceeding 100% of GDP. With a full bailout it would have topped 140%. I'm not sure if Europe insisted on the levy per se. Europe did require Cyprus to find 5 billion Euros.
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23-03-2013, 19:37
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#1194
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Remoaner
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Re: Eurozone will collapse...
Quote:
Originally Posted by martyh
my understanding was that it was the government that needed the bailout from the EU ,the EU said yes you can have one but only if there is a levy on deposits held in Cypriot banks .What has been mentioned on news reports is that the cypriot banks where/are awash with money from Russian billionairs who used the banks to launder their money so i don't think the banks where skint or where would the levy on deposits come from
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I am pretty sure they need the bailout to save the two banks. The banks are certainly not awash with money and are only still going because they've been getting "emergency liquidity", i.e cash for day to day operations, from the European Central Bank.
They were liable for a lot of Russian money. The Eurozone didn't want to be seen to be bailout out rich Russians so said that some of the bailout, which would have amounted to more than the entire GDP of Cyprus, would have to come from Cyprus itself. However if the bailout is being used to save the banks then you could just as easily they say that the EU is only bailing them out to a point. That point as been changed to protect those savings under €100,000 and 80% of those over €100,000.
---------- Post added at 19:37 ---------- Previous post was at 19:36 ----------
The thing is, if the bailout didn't happen and the ECB stopped the emergency liquidity then the banks would have collapsed and people under €100,000 would have been refunded but everything over €100,000 would have been lost.
So again. What was the alternative?
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23-03-2013, 19:41
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#1195
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Oh When The Saints!!
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Re: Eurozone will collapse...
So having done it once, what is to stop Cyprus doing it again to those with over 100000 in the bank.
What would be the result of most major depositors withdrawing what they have left after this levy?
My guess is that the banks will likely fail....
If 5bn had to be raised and that is 20% of savings that means the savings are worth 25bn. OUCH.
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23-03-2013, 19:43
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#1196
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Grumpy Fecker
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Re: Eurozone will collapse...
Quote:
Originally Posted by Damien
OK so what would you have preferred to happen?
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I would have preferred Cyprus to grow a pair and leave the Euro wreak, then other would see it was something they could do as well and the house of cards would fall.
---------- Post added at 19:43 ---------- Previous post was at 19:42 ----------
Quote:
Originally Posted by Damien
Where would they get the money from? The banks were about to go under?
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Well hang on, where is Germany getting its blood money from if the banks were about to go under ?
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23-03-2013, 19:45
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#1197
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Remoaner
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Re: Eurozone will collapse...
Quote:
Originally Posted by Sirius
I would have preferred Cyprus to grow a pair and leave the Euro wreak, then other would see it was something they could do as well and the house of cards would fall.
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OK but then a lot more depositors would have lost their money. It's just a bit disingenuous to be angry at the Eurozone for not saving all the depositors money when ou would rather they didn't anything at all. Can't have it both ways.
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23-03-2013, 19:47
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#1198
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Grumpy Fecker
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Re: Eurozone will collapse...
Quote:
Originally Posted by Julian
So having done it once, what is to stop Cyprus doing it again to those with over 100000 in the bank.
What would be the result of most major depositors withdrawing what they have left after this levy?
My guess is that the banks will likely fail....
If 5bn had to be raised and that is 20% of savings that means the savings are worth 25bn. OUCH.
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There WILL be a run on the banks after this, Cyprus is now well and truly screwed and the Euro elite know that. The likes of Germany and France will have a strangle hold on Cyprus after this and i would expect preferential trade deals to boot
I give it 2 months for all the money to disappear out of the Cypriot banks and then BANG down they go again.
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23-03-2013, 19:48
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#1199
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Remoaner
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Re: Eurozone will collapse...
Quote:
Originally Posted by Sirius
Well hang on, where is Germany getting its blood money from if the banks were about to go under ?
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Germany isn't getting any of the levy money, the levy money is still going to Cyprus.
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23-03-2013, 19:51
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#1200
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Grumpy Fecker
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Re: Eurozone will collapse...
Quote:
Originally Posted by Damien
Germany isn't getting any of the levy money, the levy money is still going to Cyprus.
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So Germany does not get any of the interest that will be charged on the loan. ?
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