Posted on 03/28/2013 2:24:01 AM PDT by bruinbirdman
Edited on 03/29/2013 12:25:21 AM PDT by Admin Moderator. [history]
The punishment regime imposed on Cyprus is a trick against everybody involved in this squalid saga, against the Cypriot people and the German people, against savers and creditors. All are being deceived.
(Excerpt) Read more at telegraph.co.uk ...
March Madness: Cypriots Lose!
If I were a Cypriot I would withdraw the limit and deposit nothing.
It will be a slow death by a thousand cuts.
Impossible. EMU hasn’t been to the tourney in about 15 years.
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I can’t remember the source so disregard if you want but I believe Cyprus and Greece have the lowest level of tax compliance in Europe. As such, this repellant taking of depositors’ money might be justified by the Germans as simply tax collection.
Good, I was going to ask what an EMU was.
Now I know. Thank you.
The author speaks of haircuts and insurance.
The reality is that the depositors are being asked to pay for insurance after the fact. The haircut is in reality an insurance premium.
Wachovia is no more. The very large southeastern bank failed and was absorbed by Wells Fargo. The FDIC handled the transaction smoothly. It happened thousands of other times just a few years ago.
In Europa there is no FDIC. One is being created after the fact with premiums being collected directly from depositors rather than trickling down over time to the banks and thence the FDIC.
oh, so if your neighbors fail to comply with tax regulations, it's perfectly okay to confiscate 30% or more of your money!
Thinking of it as a tax is ok but I prefer to think of it as a fee for services. Alternatively, It can be thought of as a retroactive deposit insurance premium.
The furor could have been lessened by an upfront public relations effort. The PR was severely lacking
>>Wachovia is no more. The very large southeastern bank failed and was absorbed by Wells Fargo.
An interesting side note on that - First Union, which was acquired by Wachovia in the high-flying days of the 90s, issued the first Mortgage Backed Securities insured by a GSE. Bear Sterns (remember them?) was also involved. This used to be buried on Wachovia’s web site:
First Union, Bear, Stearns Price Securities Offering Backed By Affordable Mortgages (1997)
http://www.freerepublic.com/focus/f-news/2090118/posts
Careful reading is a valuable life skill. I CLEARLY indicated a conjecture about Germany’s possible rationalization of what I CLEARLY indicated was a repellant taking.
Have a grown-up re-read it to you.
But bank deposits are guaranteed upto 100,000EU. Kinda like here, where deposits are guaranteed upto $250,000 in interest bearing accounts per holder. Amounts over the limit are NOT guaranteed. Like, IndyMac, the excess is LOST.
Cyprus has communist rule. Why is anyone surprised that personal property is not treated well?
Greece has hired 1000 forensic accountants to confirm the reported income vs the actual lifestyle of the Rich.
It was my understanding that there was no deposit insurance
LOL! Lots of friends and some relatives went to EMU.
http://en.wikipedia.org/wiki/Eastern_Michigan_Eagles_men’s_basketball
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