Posted on 03/23/2013 11:46:28 PM PDT by Olog-hai
Milton Friedman said that from the very beginning.
Look at his documentaries Free To Choose.
Well worth watching!
Better than a Ph.D. in economics from watching online videos!
They are well produced and very interesting - it's surprising to think that PBS was involved.
Economist Fiona Mullen said she doubted there would be much leeway from the Eurogroup.SOURCE: http://www.france24.com/en/20130323-pain-mounts-big-depositors-two-main-cyprus-banks
"Estimates on how much you would need to haircut changes from minute to minute but, if we go with (German Finance Minister Wolfgang) Schaueble's number last week, it was 40%. That probably just increased to 50% because of the recent events," she said.
The smart money...would let Cyprus collapse within the EU. The EU is neither stable or sustainable. Every member state of the Euro is a socialist mess with debt up to their ears.
You don’t try to save a drowning person of they will not follow your instructions lest they take you down with them.
The EU and all od the countries who signed on to the Euro did so with the thought that they could set up utopia and if it crashed then someone else would be on the hook to clean it up.
The EU is doomed, and they simply will not be able to save themselves from their own greed.
Socialists are the most greedest.
I suspect that the Europhiles will blink on this one, and cough up the bailout, because they would rather destroy their own countries than see other nations leave the EU, as that would “destroy the dream” of a unified European nation, that they are obsessed with.
Actually they will probably get more foreign depositors in solvent states now that they know they won’T be required to carry as much of the load for those who are insolvent. I don’T really understand the pity for Cyprus who is being required to give something back in return for a bailout. This will cut back on cries for bailouts in future. I don’T see this as a bad thing.
Cyprus is “giving back” other peoples’ money. Cyprus is a European Union member state. Cyprus is being forced to confiscate deposits by the EuroGroup, which are all the various heads of the central banks in EU member states. If no one can see how this will destroy trust in the financial system of the EU as a whole, there’s a really big train wreck coming. I don’t think they’re quite that stupid. Arrogant, yes. Stupid, no. Not on the whole.
From what I understand over 50 percent of the depositors are Russian. If so, it’S likely that a large number of the rest are in sympathy with Russia and what the Russians are doing there. AGain, if they want a bailout I don’T see problem with them giving something in return.
Scapegoating depositors does not sway me in the least. Depositors didn’t drive Cypriot banks into insolvency, regardless of their nationality.
They do run banks into insolvency if they, for example, establish a presence in the country only for political reasons in order to speculate in real estate bubbles and then expect to be bailed out by western European taxpayers.
They wouldn’t have deposits to levy if that were the case, now would they?
Sure they would if they’Re funneling in money from other ventures around the world to take advantage of a bailout they thought was coming with no strings attached.
If that were to be the case, I'd suspect that there would be multiple, multiple sketchy accounts for the purpose of money laundering set up to fall within the limits of the EU guarantee up to 100,000 EU.
But, those aren't being touched.
Maybe they should just take it all, might be dirty money.
Up to this point it hasn’T been “might” get bailed out. It’s been “WILL” get bailed out. The EU has pre empted the Russians by suddenly changing the MO. The Russians did not expect the 100,000 threshold so did not go the multiple small account route. I find it funny so many conservatives defending the Russians in their stealth takeover. I for one am happy to see them blocked.
The 100,000 deposit guarantee threshold came into being several years ago and was no secret so to say anyone is surprised by the existence of it is nonsensical.
If there is proof of illicit funds being laundered there are legal means to pursue the matter without seizing funds on a vague pretext and violating the trust upon which the banking system depends and functions.
This is the thing that so many fail to grasp in rushing to scapegoat depositors.
Deposits do not make banks insolvent. The lack of them does.
No a Levy on accounts over 100,000 was not clear until a few days ago. It had not been done before so the russians did not know it was coming. And large depositors most definitely do have say in the direction a bank goes. Big customers and bank management walk hand in hand.
You believe not just that Russian mobsters comprise the entirety of large depositors above the ECB guarantee cutoff, having funneled more money there in the hopes of possibly being bailed out, but that they directed the haircut they're now up in arms about. Right.
You're making this up as you go along, aren't you, lol?
Who said anything about the Russians directing the haircut. I said they were blindsided by that. They may now have to go along with it now but earlier I’M sure they thought an infusion of cash was coming at no cost to them.
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