How to cause a run on the banks

[eek]

The choice is that depositers pay the tax and lose 10% or they lose most of it as they did in Iceland.

...no brainer really

The debate going on in Cyprus is whether to reduce or eliminate the tax for small depositers and increase the tax for depositors with more than 100,000.

Are you sure about that.

Cypriot President Nicos Anastasiades held a telephone conversation with European Economic and Monetary Affairs Commissioner Olli Rehn on Monday night to inform him that there might not be enough parliamentary support for a deposit tax on the island.

Cypriot MPs were due to debate on Tuesday a tax on deposits but it looks like Anastasiades will not be able to get enough votes to approve the one-off levy, which was decided at Eurogroup meeting in the early hours of Saturday.

Anastasiades is also reported to have spoken to German MEP Elmar Brok, a member of Chancellor Angela Merkel’s CDU party who is close to the German leader.

According to Mega TV, Anastasiades is reported to have said to Rehn and Brok: “When I warned you that there would not be a parliamentary majority to pass the agreement, you didn’t want to listen. Give my regards to Mrs Merkel.”

[doodab]

And at some point after the vote doesn't pass every bank account in Cyprus will be emptied. Oh dear....

[eek]

And at some point after the vote doesn't pass every bank account in Cyprus will be emptied. Oh dear....

the problem is that regardless of what happens the accounts will be emptied (in case the EU decide to do it a second time). They may as well now let the banks fail because two days after they reopen the banks are going to fail regardless of what they do.

Banking is a confidence trick and now confidence is gone the banks will be too.

[centurian]

Banking is a confidence trick and now confidence is gone the banks will be too.

+1

The most important asset a bank has is the trust/gullibility of it's customers and once that is lost - the bank is toast.

[Mich the Tester]

As people have implied, that Cyprus is some sort of tax haven then surely this should come as no surprise either as the EU already has a form of savings taxation which may, or may not, have been ignored or just doesn't work...

There's a lot of hypocrisy coming out of northern Europe about tax havens; the Netherlands is a tax haven for multinationals, the UK is effectively a tax haven for billionaires who fly in and out of London, Germany isn't a tax haven but industry gets massive government contracts (ever seen the German police driving Fiats or the German army driving Land Rovers?).

And allegedly, some of the money in the accounts belongs to Russians who are suspected of hiding their money from authorities for whatever reason. Now if I was a Russian business owner, given the propensity of Putin to steal businesses and then hand them to his political friends, I'd be hiding money from the authorities too. Putin's a bit like Mobutu but with nuclear weapons. Allegedly.

[darmstadt]

There's a lot of hypocrisy coming out of northern Europe about tax havens; the Netherlands is a tax haven for multinationals, the UK is effectively a tax haven for billionaires who fly in and out of London, Germany isn't a tax haven but industry gets massive government contracts (ever seen the German police driving Fiats or the German army driving Land Rovers?).

And allegedly, some of the money in the accounts belongs to Russians who are suspected of hiding their money from authorities for whatever reason. Now if I was a Russian business owner, given the propensity of Putin to steal businesses and then hand them to his political friends, I'd be hiding money from the authorities too. Putin's a bit like Mobutu but with nuclear weapons. Allegedly.

Quite right, why do think U2 moved their base of operations to the Netherlands rather than support their near bankrupt country? As for the Germany police driving Fiats, do the Italian police drive Renaults? Actually that question is bit strange, if your country had a better product than others surely you would use locally sourced products? (BTW, the German police do actually use Fiats and Land Rovers as well as other non-German marques.)

You mean Mobutu doesn't have nuclear weapons?

[Mich the Tester]

Quite right, why do think U2 moved their base of operations to the Netherlands rather than support their near bankrupt country? As for the Germany police driving Fiats, do the Italian police drive Renaults? Actually that question is bit strange, if your country had a better product than others surely you would use locally sourced products? (BTW, the German police do actually use Fiats and Land Rovers as well as other non-German marques.)

You mean Mobutu doesn't have nuclear weapons?

I don't necessarily object to governments supporting their own country's industry by buying locally, I just think it's slightly hypocritical to criticise one country for gaining a competitive advantage through low business or personal taxation while gaining a competitive advantage by using tax money to support your own businesses; in the end they're all forms of favouritism through the tax system. Fine by me, but don't then slag off others for doing something similar.

Luckily, I don't think Mobutu had nukes.

[eek]

latest news

Member of Cypriot govt just on Fivelive - he said that they will not pass the bill to accept the EU/IMF deal and that his colleagues are talking about leaving the EU.

He said that even if they passed it that there would still be a bank run so there was no point in passing it.

so at least someone can think past issue 1. I don't think many people realise how big a problem this could be.

[doodab]

latest news



so at least someone can think past issue 1. I don't think many people realise how big a problem this could be.

I think they will throw their lot in with the russians.

The whole thing is a class A **** up.

[DimPrawn]

Quite right, why do think U2 moved their base of operations to the Netherlands rather than support their near bankrupt country? As for the Germany police driving Fiats, do the Italian police drive Renaults? Actually that question is bit strange, if your country had a better product than others surely you would use locally sourced products? (BTW, the German police do actually use Fiats and Land Rovers as well as other non-German marques.)

You mean Mobutu doesn't have nuclear weapons?

Italian government buys 19 Maserati supercars despite austerity cuts - Telegraph

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