Cyprus brokers and the EU bank bailout haircut

[gc1]

So it looks like the latest plan is a 40% haircut on the over €100,000 bank accounts, with everyone under €100,000 protected. I don't know if that is going to get accepted, if it is then I hope most of the Cyprus brokers use banks outside of their country to hold customer funds.

 

[LiboNZT]

Even if Cyprus manages to get the bailout money and recapitalise their banks, do you think that this will solve the core problem of the euro sovereign crisis and lead to growth and stability? I think we are witnessing a far larger and more complex problem, the collapse of the bond market has already begun and it will likely continue in the next months. Plus I don't think monetary easing will do the trick this time. It will definetly buy a little more time until the greatest bear market of all will take place starting from 2014. You don't need to be a guru in order to realise that a major ****storm is on its way unless our goverments and institutions get things right this time and act appropriately.

 

[Pat494]

maniana, I'll have another ouzo as I relax in the sun.
Crisis - what crisis ?

 

[Pat494]

Alright where for instance did all that money go ?
Big Christmas bonuses, friends of the bosses etc. ???? Some of it could be clawed back couldn't it ?

Even if it is all legit then the sprouts in Brussels could easily cover a paltry E8 billion. They have the printing presses. A mere drop in their debt bucket.

 

[Splitlink]

Alright where for instance did all that money go ?
Big Christmas bonuses, friends of the bosses etc. ???? Some of it could be clawed back couldn't it ?

Even if it is all legit then the sprouts in Brussels could easily cover a paltry E8 billion. They have the printing presses. A mere drop in their debt bucket.

I have an idea that the Greek crisis may have had something to do with it. In any case, I heard at mid-day, that the Russians have said no so anything can happen, but nothing any good will come out of it for Cyprus.

 

[cablemonster]

cyprus could be an interesting test case for a country leaving the EU. Whatever bailout is agreed it wont last simply because the banking industry is 10 times as big as it needs to be for the country and whatever is agreed will cause a massive bank run. This will cripple the economy whatever bailout is agreed. Essentially it is an iceland case where the country is crying out to default and be 'reset'. you force any sort of deposit haircut and 95% of the capital will leave and not return within a few months.

Cyprus is a complete basket case and because of it's small size like Iceland it may be the first country out of the EU, this will set a precedent. Countries like Portugal will think, hold on we can default and recover quickly. interesting times.

 

[Hoggums]

I agree. The real losers will be the EU, the pain of a default in Cyprus will be sharp - but it will be short in comparison.

The ECB is posturing at the moment saying the decision has to be done by Monday - but Cyprus would be well advised to call their bluff. I don't think Cyprus will be allowed to go bust as the ripples across the EU will be extremely damaging. If Cyprus - then why not Greece. And If Greece then Portugal and Italy are fair game. Currency speculators will be quick to attack the Euro if they see a Europe wide run on the banks which investors trying to split their money into smaller accounts or move it into USD.

 

[cablemonster]

i think Cyprus will eventually default but not now, they will keep patching it up, band aid on a mortally wounded soldier style, until the people realise it's far better to default. when it eventually leaves the Greek people will watch with interest, that's when it will get interesting. It's crazy what has happened there and the Russian involvement tops it all off. How on earth could they let so much dirty money flow in. The country needs to default and rebalance to agriculture and tourism, the people there could have a good quality of life with those 2 industries but no they have been destroyed by greed. sad to watch.

I agree. The real losers will be the EU, the pain of a default in Cyprus will be sharp - but it will be short in comparison.

The ECB is posturing at the moment saying the decision has to be done by Monday - but Cyprus would be well advised to call their bluff. I don't think Cyprus will be allowed to go bust as the ripples across the EU will be extremely damaging. If Cyprus - then why not Greece. And If Greece then Portugal and Italy are fair game. Currency speculators will be quick to attack the Euro if they see a Europe wide run on the banks which investors trying to split their money into smaller accounts or move it into USD.

 

[Splitlink]

I agree. The real losers will be the EU, the pain of a default in Cyprus will be sharp - but it will be short in comparison.

The ECB is posturing at the moment saying the decision has to be done by Monday - but Cyprus would be well advised to call their bluff. I don't think Cyprus will be allowed to go bust as the ripples across the EU will be extremely damaging. If Cyprus - then why not Greece. And If Greece then Portugal and Italy are fair game. Currency speculators will be quick to attack the Euro if they see a Europe wide run on the banks which investors trying to split their money into smaller accounts or move it into USD.

Not sure if it is not in the Euro's interest to see the most cash strapped countries leave the Euro.

I don't know, just saying that I am not sure. Cyprus will be back for more cash, eventually, as will be Greece. Spain has not asked for a bail out, yet, because its banks have been dealt with separately.

It was in Germany's interest to want a Euro because of the strength of the DM, but is it in her interest to keep propping up the economically knackered Euro countries? The Germans know, of course but, they will only do so while it is in there own interest.

******** to it! Let them sort it out!

 

[Pat494]

Not sure if it is not in the Euro's interest to see the most cash strapped countries leave the Euro.

I don't know, just saying that I am not sure. Cyprus will be back for more cash, eventually, as will be Greece. Spain has not asked for a bail out, yet, because its banks have been dealt with separately.

It was in Germany's interest to want a Euro because of the strength of the DM, but is it in her interest to keep propping up the economically knackered Euro countries? The Germans know, of course but, they will only do so while it is in there own interest.

******** to it! Let them sort it out!

I bet the average Gerry is pretty plssed off working hard and having to carry the rather useless Southern countries. Must be all that lazing about in the sunshine - definately a no no for work it seems. That cash disappeared from the Cyprus banks. Why noone asks who got it I don't know. Embezzlement maybe ?

 

[barjon]

...........It was in Germany's interest to want a Euro because of the strength of the DM, but is it in her interest to keep propping up the economically knackered Euro countries? The Germans know, of course but, they will only do so while it is in there own interest...............

!

It's still in their long term interests to maintain (for them ) an artificially low currency and enjoy the competitive advantage that gives them. There's Germany and Greece batting along at parity - imagine what the DM/Drachma rate would be at the moment - sure as Hell not parity

 

[Splitlink]

I bet the average Gerry is pretty plssed off working hard and having to carry the rather useless Southern countries. Must be all that lazing about in the sunshine - definately a no no for work it seems. That cash disappeared from the Cyprus banks. Why noone asks who got it I don't know. Embezzlement maybe ?

Pat, you exasperate me! You do it on purpose. If I have to come to the UK, because of this I'll want that spare bedroom you've got and save you the tax charge.

 

[Atilla]

Pat, you exasperate me! You do it on purpose. If I have to come to the UK, because of this I'll want that spare bedroom you've got and save you the tax charge.

I think you would be better off moving to Cyprus than the UK. :idea:

Nothing wrong with Cyprus. Land of good food, good people and glorious sunshine.

We have plans to move to Italy one day...

 

[Splitlink]

I think you would be better off moving to Cyprus than the UK. :idea:

Nothing wrong with Cyprus. Land of good food, good people and glorious sunshine.

We have plans to move to Italy one day...

I've just been listening to the weather conditions. To hell with Pat's bedroom, probably not heated, anyway. I think I'll take a park bench.

 

[Splitlink]

I think you would be better off moving to Cyprus than the UK. :idea:

Nothing wrong with Cyprus. Land of good food, good people and glorious sunshine.

We have plans to move to Italy one day...

Atilla, I'm beginning to believe that it is becoming impossible to make any plans involving the use of money.

Cyprus will be rescued, probably, although it is not certain, yet. It will involve, almost certainly, QE on the part of Europe. A kilo of oranges is worth 2.95 euros. Next month, they will cost just a few cents more, 3.10 euros, but it is creeping inflation, just the same.

 

[Pat494]

Atilla, I'm beginning to believe that it is becoming impossible to make any plans involving the use of money.

Cyprus will be rescued, probably, although it is not certain, yet. It will involve, almost certainly, QE on the part of Europe. A kilo of oranges is worth 2.95 euros. Next month, they will cost just a few cents more, 3.10 euros, but it is creeping inflation, just the same.

I seem to have struck a bit of a nerve with you Splitt ole bean. Nothing personal of course but shouldn't someone find out who pocketed the cash ? It could be a crafty move by the Cypriot bankers to trouser E6 billion and the taxpayer has to cover it. Surprised if they didn't have that in the calculations before it happened. If that is the case and they get away with it then others will copy. Same old story, some will prosper from the latest crisis, like Soros and the majority must take the usual beating ???
Don't worry Splitt, they won't come raiding the old folks home in Barcelona.

 

[Atilla]

Atilla, I'm beginning to believe that it is becoming impossible to make any plans involving the use of money.

Cyprus will be rescued, probably, although it is not certain, yet. It will involve, almost certainly, QE on the part of Europe. A kilo of oranges is worth 2.95 euros. Next month, they will cost just a few cents more, 3.10 euros, but it is creeping inflation, just the same.

Splitlink I think you are true spark as well as a positive European.

This is the time to start buying up and moving money to Cyprus or anywhere else for that matter. I would buy property and land - as I am doing.

Opportunities that await the island are far better than ever before as peace brake outs all over the ME, Egypt and Libya and hopefully for Cyprus and Greece with Turkey too. I'd say the same for Spain. Not to mention the 120 years of gas supply they have discovered.

My point is not to keep cash in deposits but tangible assets. Bear in mind latent inflation is a potential risk to savings just as much as banking sector.

Capitalism is going through a crises unable to adjust to a slow down and hell bent on exceeding expectations and profits year after year after year. Most things are well over cooked. Keep her steady as she sails forth...

Right now whole of UK is under a blizzard. It's grim up North and pretty cold in the West too. I suspect Pat does have heating. Powered by alchol in some rescue shelter as we type now. :cheesy:

 

[Pat494]

Splitlink I think you are true spark as well as a positive European.

This is the time to start buying up and moving money to Cyprus or anywhere else for that matter. I would buy property and land - as I am doing.

Opportunities that await the island are far better than ever before as peace brake( breaks out ) outs all over the ME, Egypt and Libya and hopefully for Cyprus and Greece with Turkey too. I'd say the same for Spain.

Capitalism is going through a crises unable to adjust to a slow down and hell bent on exceeding expectations and profits year after year after year. Most things are well over cooked. Keep her steady as she sails forth...

Right now whole of UK is under a blizzard. It's grim up North and pretty cold in the West too. I suspect Pat does have heating. Powered by alchol ( alchohol ) in some rescue shelter as we type now. :cheesy:

Thanks At
Just back from rowing out to my small boat and bailing out the water. Strong wind and tide to row against !!

Just one Cornetto at a time in Italy I guess

 

[Atilla]

Thanks At
Just back from rowing out to my small boat and bailing out the water. Strong wind and tide to row against !!

Just one Cornetto at a time in Italy I guess

Haha - I'm not too comfy right now either to be honest. Left the car in London and cycled to Worthing. Now I have to cycle to the supermarket for some shopping. Only positive is the weather. It is sunny, very crisp and fresh.

No snow or rain - yet.

 

[Pat494]

Could be a smoke and mirrors job and poooof the money disappears.

Right up banker's street. With enough to buy off any investigation.

Quicker than Splitt can work out how many oranges for a kilo

P.S. All the park benches round here are occupied.