Cyprus' savers bear brunt of unprecedented bailout

Makalakumu

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http://www.infowars.com/ex-chancellor-warns-of-bank-runs-across-europe/

Former British Chancellor of the Exchequer Alistair Darling has warned that the raiding of peoples saving accounts in Cyprus could trigger bank runs across Europe.

They have actually now said to people We will come after your deposits, no matter how small your savings are and that seems to me to make it more likely that, if you are a saver in Spain or in Italy, for example, and you have just the sniff of the EU or the IMF coming your way, you will take your money out and you will get a run on the bank,
he told BBC Radio Fours Today show.

Darling said that the unprecedented step of looting banks account of those with 100,000 euros or less could lead to a collapse in confidence because it blows apart the notion that such sums are protected.​

Right? Left? Apparently they're all thieves.
 

K-man

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Let's see if I have this right. The Cypriot banks have borrowed money for whatever reason. They can't pay it back. Technically they are bankrupt, but that's not good for confidence in the Eurozone. So now the Government is expected to take over the debt and the responsibility for the banks' mismanagement while the bank boys keep doing what they have been doing, that is laundering Russian 'black' money. The EU says, hold on, the banks have to take some responsibility but then every one screams "you can't touch the deposits". OK, simple solution. Let the banks sort it out themselves. They stuffed it up, they can sort it out and if they can't then the depositors lose the lot. The idiots who thought a common currency would or could work across the whole stage of Europe are to blame. Their lack of foresight is unsettling the whole of the EU. :asian:
 

jezr74

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Interesting test..

Economic Left/Right: -6.75
Social Libertarian/Authoritarian: -3.44



Sent from my Nexus 7 using Tapatalk HD
 

Daniel Sullivan

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How'd you get the image to link in, Bill? When I tried it complained about invalid file type. Let's try it via the local route ...

Economic Left/Right: -7.88
Social Libertarian/Authoritarian: -1.28



View attachment 17765

I'm three squares down the center line of the light green. Which put me a bit to the right of you and slightly more libertarian than you, but slightly left of/equally liberatarian to the Dalai Lama and Nelson Mandella.

My only real criticism of the quiz is that there should have been a dead center option, as there were some questions where I could really go either way due to lack of detail in the question or statement.
 

Sukerkin

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Aye, Danny, I quite agree. As is often the case the survey framers have to couch the questions to get quantifiable responses whereas a lot of us, I suspect, given our druthers, would have rather less 'succinct' replies because, annoyingly, things are not always easily dropped in a pigeon-hole.
 

Steve

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Economic Left / Right: -1.12
Social Libertarian/Authoritarian: -3.23

Pretty much where I expected. Moderate left/right and leaning libertarian. Just a titch to the right of Nelson Mandela, I guess.
 

K-man

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Sukerkin

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For the record, I am astounded that the system has come to this pass ... I knew that those in 'charge' had no morals and were the slaves to the financiers but even I thought they would not dare be so open in how they rob the peasantry to feed the capitalist maw.
 
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Big Don

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Mark, were you one of those in favor of the UK joining the EU and changing the Pound to the Euro?
 
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Big Don

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So, what are you going to do with a gun? Rob the bank? Remember, it is the bank that has no money. They need EU money to keep afloat. No EU, no money, depositors lose the lot. Same as your bankers did to you. Just that your Government borrowed the money to bail them out. :asian:
The bank has no money? The depositors HAD money, the bank, lends that money to others, charges interest, pays you interest on your savings and culls a profit from the difference between the amount of interest and other fees they charge and the amount of interest paid out. That is a very simplified explanation of how banks make money.
What would I do with a gun if the government was stealing up to 40% of my savings? I don't know. But, I know when you DON'T have one, you lack the option of using it...
 

Sukerkin

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No way! Not ever, no how! Until currency trading is declared illegal no government should ever sacrifice the control over it's own unit of economic measure. I can see some advantages to a common currency but without removing the predation by the non-contributory 'virtual' sector it is just laying the throat of the real economy bare.
 
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Big Don

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No way! Not ever, no how! Until currency trading is declared illegal no government should ever sacrifice the control over it's own unit of economic measure. I can see some advantages to a common currency but without removing the predation by the non-contributory 'virtual' sector it is just laying the throat of the real economy bare.

I couldn't remember if you had weighed in on the Pound vs the Euro, but, was not about to delve into ten gillion posts to find out...
(Of course the pun is intended. Have we met?)
 

K-man

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The bank has no money? The depositors HAD money, the bank, lends that money to others, charges interest, pays you interest on your savings and culls a profit from the difference between the amount of interest and other fees they charge and the amount of interest paid out. That is a very simplified explanation of how banks make money.
The banks take the depositors' money and lend it out but they also borrow heaps of money from elsewhere to lend out as well. When things are going well they pay low interest on their debt and charge higher interest on the money lent. Then along comes the GFC. A lot of the people borrowing from the bank go belly up. The bank can't get the money back. To keep trading they have to refinance the debt but the lenders know there is a problem and increase the interest rate. Now the bank starts to make a loss.

That is a very simplified explanation of how banks lose (depositors') money! :)
 
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