Australian (ASX) Stock Market Forum

Shock in Cyprus as savers face bailout levy

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Anarchy is always a good look for Government.

And they wonder why people avoid taxation??
 
drsmith said:
They do seem somewhat reluctant to reopen the banks.
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Maybe they won't or they cannot.

The Banksters will be holding things back as long as they can so that they can set themselves before the dominoes begin to fall

Some of my circle are questioning why gold is not going up as a result, now that is the laast thing they will allow at this time. But bust it all will.

We just have to continue to watch this space.

And Governmentalists, tech and a few others above, count for jack sh t in this world we have now.
 
explod said:
Some of my circle are questioning why gold is not going up as a result, now that is the laast thing they will allow at this time. But bust it all will.

We just have to continue to watch this space.

And Governmentalists, tech and a few others above, count for jack sh t in this world we have now.
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Yeah mate its tough being on the wrong side of a trade. Never mind. Sun still shining.
 
One of the PR difficulties with this saga, is that the Cyprus thing is somewhat unique in that the biggest losers are the Russians. No one can come out and make a big statement about this to quell fears because it would be a diplomatic disaster.
Perhaps they are waiting for people to connect the dots.
There is no way the Europeans would be willing to bail out dirty Russian money.
Simple.
It's not a precedent as is being speculated in the media!!

Gold may not be going up due to US$ appreciating against EURO.
 
Trembling Hand said:
Yeah mate its tough being on the wrong side of a trade. Never mind. Sun still shining.
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Trade this market, u know me better than that T/H, just a simple ole sploddy here that is way out of it.

As a matter of fact, the veggies in my new found bush retreat just coming into profit now. I'll have to set a charting system up.:)
 
Don't know if this has been posted, but is interesting...

No one knows exactly how much money has left Cyprus' banks, or where it has gone. The two banks at the centre of the crisis - Cyprus Popular Bank, also known as Laiki, and Bank of Cyprus - have units in London which remained open throughout the week and placed no limits on withdrawals
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.

The source is Reuters, here....

http://www.reuters.com/article/2013/03/25/eurozone-cyprus-muddle-idUSL5N0CG13920130325

This has gone from debacle to farce to ineptitude.

Then again, if you as an individual banker, with a family, had a choice of giving the Russian mafia a hard time, or an out, what would you choose?
 
A question from the first page of this thread,

burglar said:
Scary! What if this madness catches on?
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The idea of it being a one-off seems to be fading,

(Reuters) - A rescue program agreed for Cyprus will serve as a model for dealing with future euro zone banking crises and other countries will have to restructure their banking sectors, the head of the region's finance ministers said.
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http://www.reuters.com/article/2013/03/25/us-eurogroup-cyprus-dijsselbloem-idUSBRE92O10A20130325
 
FlyingFox said:
And soon coming to a bank near you.....Ok Ok I am getting a bit carried away but seems looks like the non-printing solution to the GFC induced crisis is to take depositors money.
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Maybe not so carried away at all. Despite our well regulated banks here, I'm starting to have some concerns about too much in cash. Probably quite irrational, but I doubt I'd be the only one.
 
Julia said:
Maybe not so carried away at all. Despite our well regulated banks here, I'm starting to have some concerns about too much in cash. Probably quite irrational, but I doubt I'd be the only one.
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Not irrational at all, exactly my feelings today.

Classic comment on CNBC today by a Scandinavian commentator, in response to Bernie Low's question, " Should Cyprus leave the Euro zone ?"....answer (paraphrased) " You must remember that the Euro zone is a prison, a prison from which there is no escape"....nearly fell off the chair.
 
Julia said:
Maybe not so carried away at all. Despite our well regulated banks here, I'm starting to have some concerns about too much in cash. Probably quite irrational, but I doubt I'd be the only one.
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During the GFC I opened about 7 different online saving accounts and spread my cash between them, until the government guarantee was issued.

Australia is different in the sense that there are no external parties (like the Troika) who can force us to demand depositor's money. Not saying that the Australian banking system won't collapse - but if it does it won't be in the same fashion as Cyprus. May be it'd be more like Iceland - I don't know if the depositors there lost any notional value in their bank account - but the currency was smashed so their PPP was much reduced.
 
Martin Wolf from FT
“Banks are not vaults. They are thinly capitalised asset managers that make a promise– to return depositors’ money on demand and at par– that cannot always be kept without the assistance of a solvent state.”
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This is a simple fact that has always been true, and moreso after the end of Glass-Steagall.

This is a stock forum where we always suggest due diligence, but when it comes to our "savings" how many here really exercise it?

Do you know the tier 1 capital ratio of the banks you loan money to in the form of deposits? CBA, which is rated AAA on local and foreign currency by Fitch, has a 10% Tier 1 capital ratio, i.e. 90c off par.

Do you view cash and bank deposits as the same thing?
http://fofoa.blogspot.com.au/2012/04/peak-exorbitant-privilege.html
Also, hyperinflation turns physical (as in physical cash) very quickly once it takes hold. So if you're expecting some sort of electronic currency hyperinflation, fuggedaboutit. If you think we're more technologically advanced than bass-ackward Zimbabwe or ancient Weimar, you are not understanding what really happens during currency hyperinflation. It cannot play out electronically all the way to the bitter end because, when prices are rising that fast, physical cash always brings a premium over electronic deposit transfers which require some amount of time (and thereby devaluation) to clear.
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Should you even utilise the "medium of exchange"/"unit of account" as a "store of value"?
 
Superb Parrot said:
Classic comment on CNBC today by a Scandinavian commentator, in response to Bernie Low's question, " Should Cyprus leave the Euro zone ?"....answer (paraphrased) " You must remember that the Euro zone is a prison, a prison from which there is no escape"....nearly fell off the chair.
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That truly is classic.
 
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