Cypriot Austerity Measures

always have been? depositing the money in a bank is not a loan, i give the rights to them to manage the money while in there but not taking money without my consent.
 
Iraklis F.C. said:
always have been? depositing the money in a bank is not a loan, i give the rights to them to manage the money while in there but not taking money without my consent.
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I think you misunderstand how the banking system works. I'm fairly sure it rolls like this (in simple terms):

You give the bank money. The bank pays you interest. The bank thus needs to make money to pay your interest. The bank loans your money out to others, charging them interest at a higher rate in order to make money while paying staff, keeping money to hand for your withdrawels and allows them to offer "free" banking.

You always have loaned the bank your money and the bank doesn't have every penny it owes to hand at any one moment in time. Of course straight up dipping their fingers into your accounts and taking money probably is neither legal not part of the contract you signed with the bank. I imagine this is something the Government is doing because it can (and it has a lack of options) rather than something that makes sense.

Should have the ministers declare their finances. It will be hilarious to see those involved in these discussions moving their money about a few weeks ago.
 
Strife212 said:
They don't. Capital controls have been in effect since the bailout was announced.

The fact that you can withdraw from UK branches is insane though. Surely anyone with big savings was on the plane to the UK instantly.
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Thats not how it works. If you have a account with the the UK branch and money held in the uk account you can withdraw that.

However I tried help a friend remove his money from them yesterday but they would not allow him to take anything out as it was in a 3 year fixed deposit and they said he has to wait another 18 months.
 
Iraklis F.C. said:
always have been? depositing the money in a bank is not a loan, i give the rights to them to manage the money while in there but not taking money without my consent.
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The bank will take your money and give it to someone else, that's how the banking system works.

Banks can only pay back 10-15% of the total deposited cash at any one time, the rest is tied up hence why the Cyprus authorities are trying to stop people going into the banks to take their cash out.

Its also why if someone is rich but has their money in the bank is does not matter as their money is not stood, it should be getting used in the economy still.
 
I'm not sure why they think keeping the banks closed longer and longer is easing peoples worries and after they have been closed 'long enough' this will stop a run on the banks as soon as they are opened.
 
Freakbro said:
I'm not sure why they think keeping the banks closed longer and longer is easing peoples worries and after they have been closed 'long enough' this will stop a run on the banks as soon as they are opened.
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its to stop the run that will happen now before they steal the money.

thing is its getting a joke now, yesterday evening the banks apart from the two cypriot ones that are taking the big hit would be open today, wake up today and its now thursday. come thursday i wouldnt bet on it being next week again.
 
GAC said:
its to stop the run that will happen now before they steal the money.
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Ok, but surely a run on a bank is a bad thing, pre or post bank levy, it is enough to bring a bank down, is it not?

I know they are now saying no levy on people with less than 100,000 euro, but would you still trust the bank and leave your 20,000 euro in there?

I'm not sure, and what other choice do you have...the bank of 'under the mattress'..... burglars are going to have a boom time soon :p
 
Strife212 said:
They always have been. Depositing money in the bank is actually giving the bank a loan, people just don't realize/care because usually it's safe.
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not really - depositing is always considered safe, except for if bankruptcy occurs, which was always rare. What the bank does with your money once it has it is its business not yours, but they MUST guarantee its return - thats the very foundation of deposit banking.
But thats now changed, which is very very bad.
 
yeah a run is a bad thing, but the european central bank, the imf and the cypriot gov will be happy as long as they have there cut first before the run.

it just shows that countrys like cyprus and greece shouldnt have been let in to the great experiment that is the eu/euro. everyone involved knew it was a bad idea but a big eu is a better eu, hence they are still pushing to add more states with questionable banking sectors.
 
When Lehman Bros. went bust, what happened to the deposits? people lost their money in this case as well?

LOL, Wolfgang Schäuble the German Finance min. said yesterday in German TV that "Europeans are jealous of Germany at the moment because as in a school class we are the best pupil who gets the best grades while the others with difficulties look upon us with envy"....hahahah oh god...
 
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Iraklis F.C. said:
When Lehman Bros. went bust, what happened to the deposits? people lost their money in this case as well?

LOL, Wolfgang Schäuble the German Finance min. said yesterday in German TV that "Europeans are jealous of Germany at the moment because as in a school class we are the best pupil who gets the best grades while the others with difficulties look upon us with envy"....hahahah oh god...
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What he didn't mention is that part of the reason why they are getting the top grades is because they also set the questions.....

In all seriousness, it is this kind of rhetoric that only creates division within the Eurozone, not to mention removing tax havens such as Cyprus is in Germany's best interest...a bit like its attempts at reform which adversely affect the City of London while increasing the potential of Frankfurt.....;)
 
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dont worry the germans arnt doing it alone. how about this for a howler.

The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.
"If there is a risk in a bank, our first question should be 'Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?'," he said.
"If the bank can't do it, then we'll talk to the shareholders and the bondholders, we'll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders."
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I think its horrendous that the government feels that it can take 40% of my hard earned income but that people get upset when those with over 100k in the bank get taxed 9.9%.

I'm not saying that those with money in the bank haven't accumulated it through working, I'm saying they probably didn't pay 40% tax on it in the first place ;)
 
they have already paid tax on it daniel, dont forget this smash and grab doesnt just cover savings, businesses are getting hit for this. including anyone unfortunate enough to be buying a house.
 
danielanthony said:
I think its horrendous that the government feels that it can take 40% of my hard earned income but that people get upset when those with over 100k in the bank get taxed 9.9%.

I'm not saying that those with money in the bank haven't accumulated it through working, I'm saying they probably didn't pay 40% tax on it in the first place ;)
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Rubbish - I expect 99% of those will have paid the amount of tax due on their money that they should have. To have someone come along and take up to 40% of it is going to ruin things like retirement plans, company expansion and cash flow and for those poor people buying houses - leave them with a mortgage and no home. Why is it people think that anyone with any amount of money is on some sort of tax dodge.
 
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