How to cause a run on the banks

[centurian]

Seems that the solution now is to make it "fair" across the board and apply a 100% haircut for all depositors.

BBC News - Cyprus holds crisis talks after bailout rejection

If nothing else, this will certainly make things interesting in how the deposit protection scheme works. I've always wondered where all those 100K's will come from when the whole system collapses.

The wobbles to the confidence of the deposit protection scheme caused by this fiasco is bad enough, but when people realise it aint worth diddly squat....

[eek]

Seems that the solution now is to make it "fair" across the board and apply a 100% haircut for all depositors.

BBC News - Cyprus holds crisis talks after bailout rejection

If nothing else, this will certainly make things interesting in how the deposit protection scheme works. I've always wondered where all those 100K's will come from when the whole system collapses.

The wobbles to the confidence of the deposit protection scheme caused by this fiasco is bad enough, but when people realise it aint worth diddly squat....

Once you start publicly talking about letting banks fail, there is only one end to the chapter (the bank fails). Which is great because it means you can point the blame at the ECB.

Hopefully the bank is not too big and the currency isn't tied to others so the effects can be minimised and contained.

Oops.

[Mich the Tester]

Once you start publicly talking about letting banks fail, there is only one end to the chapter (the bank fails). Which is great because it means you can point the blame at the ECB.

Hopefully the bank is not too big and the currency isn't tied to others so the effects can be minimised and contained.

Oops.

And hopefully the approximately 120 million people and the many businesses in Spain, Portugal and Italy won't panic and start withdrawing their money. Oops indeed.

Look, in this deal Cyprus has to raise 5.8 billion. Sounds like a lot, but compared to the big bank rescues in Northern Europe it's very very little indeed, and that's the problem for Cyprus; they're small, so they're easily bullied. The ECB and EU would frankly be better off just giving them the money than letting this carry on; it's a small price to save a currency. Maybe Dave Cameron should get on the blower to Nicos Anastasiades and say 'do you need some help mate?'

Their only alternative now is to sell access to gas fields to Mr Putin, while those gas fields are disputed by Greece and Turkey with Lebanon and Israel also feeling they have rights there. This should lead to some interesting coffee table discussions among regional leaders who aren´t reputed for being the best of chums.

[darmstadt]

And hopefully the approximately 120 million people and the many businesses in Spain, Portugal and Italy won't panic and start withdrawing their money. Oops indeed.

Look, in this deal Cyprus has to raise 5.8 billion. Sounds like a lot, but compared to the big bank rescues in Northern Europe it's very very little indeed, and that's the problem for Cyprus; they're small, so they're easily bullied. The ECB and EU would frankly be better off just giving them the money than letting this carry on; it's a small price to save a currency. Maybe Dave Cameron should get on the blower to Nicos Anastasiades and say 'do you need some help mate?'

Their only alternative now is to sell access to gas fields to Mr Putin, while those gas fields are disputed by Greece and Turkey with Lebanon and Israel also feeling they have rights there. This should lead to some interesting coffee table discussions among regional leaders who aren´t reputed for being the best of chums.

Maybe the Premier League could help out seeing as they've just sorted out a 5.5 billion deal for broadcasting rights (surely something wrong in the world.)

Maybe this is a Russian consipracy all along as they seem to be the heaviest depositors in the banks and Russian banks have allegedly loaned Cypriot companies around 40 billion which has caused the expansion to be eight times the size of the nation's €17bn economy as a result of these cash deposits.

It's quite interesting to note that the Cypriot banking system exceeded GDP by over 7 times (896%) and the UK is around 5 times (around 600%) whereas Luxembourg is over 2000%, when will they go titsup?

[Mich the Tester]

when will they go titsup?

Erm, this Friday after the Cyprus banks collapse?

[DodgyAgent]

WTF are you rambling on about? The financial crisis in Cyprus has been brought about by greedy financiers and incompetent ones at that, backed up by a government who have been too liberal in regulating them. The people who will pay are your common worker who has saved for their old age. Once again its the rich ******* over the poor with their greed...

More than 40% of the money held by Cypriot banks is by foreign depositors which begs the question, why? Quite a large percentage of that 40% are UK citizens, why? Maybe the Cypriot government could start by taxing those depositors at a rate equivalent to what they would pay in their own countries, maybe then some of it would find its way back to the UK where it is needed. Maybe, just maybe a country might stand up to the financial community but don't hold your breath (if a country as powerful as the UK can't then Cyprus definitely won't be able to...)

A typical chippy leftie wail full of lefty cliches

[darmstadt]

A typical chippy leftie wail full of lefty cliches

A typical right wing response of no value whatsoever :-)

[Mich the Tester]

A typical chippy leftie wail full of lefty cliches

A typical right wing response of no value whatsoever :-)

A typical CUK discussion.

[eek]

A typical CUK discussion.

It can't be. No-one has called everyone else a cretin or started talking about Tulips.

[DimPrawn]

It can't be. No-one has called everyone else a cretin or started talking about Tulips.

You are all Cretins, except sasguru of course.