EU Bailout of Cyprus

[lawrocket 3]

The Eurozone seems bent on constantly topping itself in the realm of dysfunction and political idiocy. Of course, I understand that the EU is getting tired of its taxpayers footing the risks of bailouts. But this brings things to a whole new level. Cypriot banks have about $65 billion in them (with about 50/50 insured/uninsured). For the EU to bail out the banking system, the EU wants the banks to raise $5.8 billion instantly before they’ll underwrite a loan.

The suggestion – do a one time 10% levy of all accounts. That means if you’ve got 5k euro in the bank today, tomorrow you’d have 4,500 Euro tomorrow. If you are a corporation with 1.5 million Euro, you’ll have 1.35 million Euro left over. (If you’ve got a 1.4 million Euro payroll, well, too bad).

Of course, there is a great deal of trepidation and concern among the Cypriots, who have promptly drained every ATM in the country of cash.

I DO understand that the EU wants bank creditors to take a hit before taxpayers. That makes sense. But the EU apparently isn’t hitting the bank’s senior bondholders. They are hitting depositors, thus playing some strange bedfellows.

I’m trying to find something about this that has been done well. It looks like a giant cluster.

My wife is hotter than your wife.

[ryoder 1,590]

Parliament just shot it down: http://www.nytimes.com/2013/03/20/business/global/cyprus-set-to-reject-tax-on-bank-deposits.html

"There are only three things of value: younger women, faster airplanes, and bigger crocodiles" - Arthur Jones.

[ShcShc11 0]

I meant to write a topic about this last week though I don't have much time these days.

But if it passes (which seems unlikely now):
2 words: Bank Run.

..
These are the sort of decisions which discredit EU's basic knowledge of economics (not to mention that its actually illegal).

EU's economic decisions are really the worst (worse than sequester idea, far worse than anything GWBush did).


Cheers!
Shc

[rehmwa 2]

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The suggestion – do a one time 10% levy of all accounts. That means if you’ve got 5k euro in the bank today, tomorrow you’d have 4,500 Euro tomorrow. If you are a corporation with 1.5 million Euro, you’ll have 1.35 million Euro left over. (If you’ve got a 1.4 million Euro payroll, well, too bad).

hush - you'll give our governor another wacky idea for cash grabbititude

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Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants

[lawrocket 3]

It's not just economics, it's a misunderstanding of human nature. Talk about a way to destroy liquidity, there you go. People won't put money in the banks and will leave the stacks of cash under the mattress.

My wife is hotter than your wife.

[billvon 3,132]

Watching the drama unfold over there is like watching a poorly produced reality TV show.

> . . .the Cypriots, who have promptly drained every ATM in the country of cash.

And the name of the leader of the "Fed" in Cyprus? Panicos Demetriades.

[rehmwa 2]

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Parliament just shot it down: http://www.nytimes.com/2013/03/20/business/global/cyprus-set-to-reject-tax-on-bank-deposits.html

so now step two: find a way to do it anyway

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Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants

[rushmc 23]

This should be big news here

But it is being largely ignored

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[rehmwa 2]

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This should be big news here

But it is being largely ignored

currently 2nd post from the top - give it time

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Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants

[rushmc 23]

Quote

Quote

This should be big news here

But it is being largely ignored

currently 2nd post from the top - give it time

Todays news

http://www.foxnews.com/world/2013/03/25/cypriot-leaders-creditors-secure-agreement-toward-bailout/

and for the most part, it is still getting little attention here

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[StreetScooby 5]

Shocking stuff. There are going to be some very angry Russian guys.

We are all engines of karma

[rushmc 23]

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Shocking stuff. There are going to be some very angry Russian guys.

It s where we are heading IMO

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[billvon 3,132]

>>2 words: Bank Run.

> People won't put money in the banks and will leave the stacks of cash under the mattress.

And the name of the governor of the Bank of Cyprus? Panicos O. Demetriades. (For real.)

[kallend 2,182]

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This should be big news here

But it is being largely ignored

Maybe in Bumfuck Iowa, but it's all over the news in Chicago.

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The only sure way to survive a canopy collision is not to have one.

[rushmc 23]

Quote

Quote

This should be big news here

But it is being largely ignored

Maybe in Bumfuck Iowa, but it's all over the news in Chicago.

because Emanual would do it if he thought he could get away with it

In any event
This story started early last week

Only NOW is the media starting real coverage of it

Because they cant ignore it anymore

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[billvon 3,132]

>Only NOW is the media starting real coverage of it

RushMC: No one is covering this story because the EVIL LIBERAL MEDIA is covering it up
Everyone else: Here's a Google news search showing 176,000 hits on the story
RushMC: Oh, sure, now that people like me FORCED them to do it

[lawrocket 3]

So am I to understand that it's generally agreed on here that the EU has outdone itself?

Will this go down as the point where the EU or the ECB jumped the shark?

My wife is hotter than your wife.

[champu 1]

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So am I to understand that it's generally agreed on here that the EU has outdone itself?

Will this go down as the point where the EU or the ECB jumped the shark?

I think the Nobel Committee really needs to stop handing out peace prizes...

[kallend 2,182]

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So am I to understand that it's generally agreed on here that the EU has outdone itself?

Will this go down as the point where the EU or the ECB jumped the shark?

I find it very hard to feel sorry for investors in tax avoidance havens.

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The only sure way to survive a canopy collision is not to have one.

[rehmwa 2]

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I find it very hard to feel sorry for investors in tax avoidance havens.

Oh, right vs wrong is all about your "feelings"

got it

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Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants

[kallend 2,182]

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I find it very hard to feel sorry for investors in tax avoidance havens.

Oh, right vs wrong is all about your "feelings"

got it

Didn't say that. I thought you were above creating strawmen, but apparently I was wrong.

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The only sure way to survive a canopy collision is not to have one.

[rehmwa 2]

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Didn't say that. I thought you were above creating strawmen, but apparently I was wrong.

you saw it here first, people. he admits one.




((hi john))

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Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants

[IJskonijn 45]

I long ago gave up on trying to understand why our politicians are idiots. Problem is also that the entire situation is so complicated that very few people actually understand it. I don't, and I'm definitely not the dullest knife in the block...

One thing I do think: We should take Iceland's example, and actually prosecute those who are responsible. Put the fear of court back in them.

[Andy9o8 3]

I'm offended that everyone's misspelling Cypres, and shocked that nobody's mentioned Hitler yet.

[champu 1]

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I'm offended that everyone's misspelling Cypres, and shocked that nobody's mentioned Hitler yet.

Hitler had an Argus.