Australian (ASX) Stock Market Forum

Shock in Cyprus as savers face bailout levy

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FlyingFox said:
BTW I would argue that we got to the GFC because "everyone put their money (and more that they borrowed) to work" leading to overheating/bubble in many fronts. When this stopped, and it was a break down in trust due to the sub prime debacle, the flow of money stopped.
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Yeah that's agreeable in my less creative opinion.

However the subprime thing was part of it, far from the main game.

Huge amounts of people had started starving all over the world due to unaffordable oil. (There was a food crises!!)
There were places where garbage wasn't even being collected because they would lose money running the truck.
Things just stopped, froze up, as you say, maybe too much liquidity in the wealthier economies.

What's kind of interesting now is the self sufficiency with energy going on in the US.
That's pretty damn bullish.
Peak oil is, now a big dumb myth.

Buy the dip! The Europeans will be more inclined to!:D
 
Tyler Durden said:
Did the news you read state that people weren't queuing?

Do you have the link?
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Are you serious? Find me a news article that says people are queuing, if you can't then you can assume they're not. Do I need to find you an article that says the world wasn't invaded by aliens today for you to believe it?:rolleyes:
 
FlyingFox said:
I agree . However, and this is the crux of it all, why are only savers targeted?
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Different rates of taxation for different things are a fact of life. You buy a property you get hit with stamp duty and GST; buy shares you don't. Why are property investors targeted?

Why is someone living off their superannuation not taxed but someone living off their savings taxed?

The list goes on and on.
 
McLovin said:
Are you serious? Find me a news article that says people are queuing, if you can't then you can assume they're not. Do I need to find you an article that says the world wasn't invaded by aliens today for you to believe it?:rolleyes:
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The inference I was trying to draw was people in Italy, Greece and Spain would see this and think it might happen to them, which would cause them to withdraw their money from banks.

The inference you're trying to draw is people from those countries would witness Cyprus and not do the same.

All I'm trying to say my inference is the more reasonable one.

Oh, and by the way:

It matters because lots of people are scared that the situation in Cyprus will spread ”” that Cypriots will take their money out of the bank en masse, which will cause people in Italy, Spain, Portugal, and other troubled EU countries to fear for the safety of their deposits as well, and start bank runs in their countries. That could lead to a continentwide financial crisis, and the fallout could hit markets in the U.S. As we saw during the last EU crisis, what happens in Europe doesn't stay in Europe for very long.
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http://nymag.com/daily/intelligencer/2013/03/absolute-morons-guide-to-the-cyprus-bailout.html
 
the real question is:
if you had your saving in Spain,Italy, potentially France, (greeks have already done their bank run last year so not much there), what would be your decision?
I know mine.
Even worse, thinking about Australia, if by any disaster, labor is reelected, do you think you should leave considerable amounts in bank account or deposit?
'cause seizing a small amount directly from accounts above a threshold would have become by then an option.


One thing for sure, , it is a paradox that you are pushed nowadays to borrow and have debts, not to save, and we know where the GFC originated from...
 
McLovin said:
Different rates of taxation for different things are a fact of life. You buy a property you get hit with stamp duty and GST; buy shares you don't. Why are property investors targeted?

Why is someone living off their superannuation not taxed but someone living off their savings taxed?

The list goes on and on.
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A tax on income is at least forward looking, a tax on savings penalizes those who have foregone certain things in their life to try and save.

IE a tax on income will effect everyone equally from a start point, whereas a tax on savings will be dis-proportionate due to various different saving rates. It is also very unevenon business accounts depending on what sort of capital management, pay cycle, inventory etc etc each business has and the timing of their payments
 
This is a joke, attacking innocent people's savings whilst the culprits of the GFC were bailed out to the tunes of billions and no one ever prosecuted...

When bank accounts are attacked in this manner people will keep it under the mattress which seems like a much safer option than giving it to crook bankers...

God help us if Ju"liar" is reelected, this may be something she would consider given her character and lies to date...
 
So those with credit cards, debts and no savings don't get penalized for what they are responsible for. While those that spend cash that they do have and manage to put some on the side once again are hit.

The rich and wealthy don't keep all their money in just one account in cash, they diversify, hold property, shares, businesses. Once again it will be the little guys that try to keep their head above water that get the crap deal.
 
Extra levy failed. Did they now decide to do what the Russians wanted? Are they perhaps paying better than the own government? I don’t think that was wise in the current situation.
 
drsmith said:
When will they be game enough to reopen Cypriot banks ?

It's pretty obvious as to what's going to happen when they do, regardless of what happens now with the deposit levy.
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I agree and I am a bit worried about the consequence of a bank run and bankrupt Cyprus. This will affect not only Europe.

notting said:
...
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Vladimir looking at a gun, funny photo:)
 
Tyler Durden said:
The inference I was trying to draw was people in Italy, Greece and Spain would see this and think it might happen to them, which would cause them to withdraw their money from banks.

The inference you're trying to draw is people from those countries would witness Cyprus and not do the same.

All I'm trying to say my inference is the more reasonable one.
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Given that they're not queuing outside banks, surely it's more reasonable to assume they won't, rather than they will.:confused:

Tyler Durden said:
Oh, and by the way:
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So, some journalist in NY hypothesises about what *might* happen and this is important because?
 
McLovin said:
Given that they're not queuing outside banks, surely it's more reasonable to assume they won't, rather than they will.:confused:



So, some journalist in NY hypothesises about what *might* happen and this is important because?
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When was the last time you queued at a bank to do your banking?
Do you expect the foreigners with the large bank deposits to be physically queuing?

You can have a 100K people queuing at the bank to withdraw a 1000 euro each or just few TT'ing 10 of million out.....
 
FlyingFox said:
Do you expect the foreigners with the large bank deposits to be physically queuing?
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They may be not queuing at the banks but I'm hearing from the ground that Taxi drivers at Cyprus airport are reporting things like "My last 3 customers where Russian coming to get their money!!!"
 
notting said:
They may be not queuing at the banks but I'm hearing from the ground that Taxi drivers at Cyprus airport are reporting things like "My last 3 customers where Russian coming to get their money!!!"
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Which was probably brought to them (their representatives I assume) at the airport in person by the bank managers in what ever currency or form they desired....or is that too creative lol.....

Like I said you don't need a queue....just a few people withdrawing the millions.....
 
Cyprus Teller Que.JPG

See what you mean.
There Queuing at the ATMs not the Tellers, especially when they find one that still has money in it!
 
FlyingFox said:
When was the last time you queued at a bank to do your banking?
Do you expect the foreigners with the large bank deposits to be physically queuing?

You can have a 100K people queuing at the bank to withdraw a 1000 euro each or just few TT'ing 10 of million out.....
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What foreigners? Cyprus was an outlier in terms of the relative size and composition of its deposit base. And their foreign liabilities were only a function of a "look the other" way mentality when Ivan or Vlad turned up with a suitcase full of money. Italy/Greece/Spain all run an overwhelmingly domestic deposit base.

Anyway, this thread is going the way of so many others on ASF where the doomsdayers will start chattering amongst themselves. Enjoy.
 
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