is this theft ?

[GEaston]

Problem the banks have in the UK is that they have to charge 10% on credit cards just to cover defaulters (who for he most part just run). Obviously they charge 20-30% to ensure they can pay bonuses.

Here in Singapore I can get a car loan for 1.88% because Noone defaults. Defaulting is considered culturally shameful........long time since that was the case in he UK.

I expect Cyprus banks will collapse on Tuesday as the public rush to withdraw. What most people don't realise is that banks create 10x more money than there actually is so when this type of run happens they simply don't have it. If more than 5% of people turn up to withdraw then the system collapses. Pretty sure that'll happen here.

[Margaret Pilkington]

It appears that the Government in Cyprus is re-thinking this issue...and the vote has been postponed.
People had had their accounts frozen so that they could not withdraw all of their money.
George Osborne (fine fellow that he is?) has said that if british troops in Cyprus are affected by this edict from the EU(because it is the EU who has directed this to happen) he will compensate them for their losses.

I think this situation, forced on Cyprus by the EU, will have serious repercussions for the Eurozone.
We may see greeks, spaniards and the portugese take their money out of the banks and hide it in their mattreses...this will really de-stablise an already shonky currency.

[Margaret Pilkington]

Cyprus Postpones Vote On Savings Raid Bailout - Yahoo! News UK

There you go...if you want to read all about it.

[accyman]

our government dosnt need to raid bank accounts if our government wants more money they just whack a load more tax on things that people need like fuel and food

[jaysay]

Originally Posted by cashman

Splendid, thats exactly same as me, but never having been one to waffle much,i just say a loud NO.

Or words to that effect

[GEaston]

Most of the money in Cyprus banks is Russian anyway which is why the Germans insisted on the 10% levy, as a condition of the bailout.

[cashman]

Originally Posted by GEaston

Most of the money in Cyprus banks is Russian anyway which is why the Germans insisted on the 10% levy, as a condition of the bailout.

Shouldn't think that'll matter a jot to all the British Ex-Pats that may well lose.

[GEaston]

Originally Posted by cashman

Shouldn't think that'll matter a jot to all the British Ex-Pats that may well lose.

True enough, but why should German taxpayers foot the bill?

At the end of the day most govts are spectacularly bust, and it's a ponzi scheme in all but name. Take a look at this U.S. National Debt Clock : Real Time and tell me it's ok....... One of the reasons I buy buildings is they won't disappear overnight and people in UK are always going to need a roof. Cyprus vanishing trick is just the tip of a very very large iceburg.

Capitalism is toast, a bust, and Govts don't have the first idea how to change (or what system to change to) so they kick the can down the road for the next govt to deal with.

[jaysay]

Originally Posted by cashman

Shouldn't think that'll matter a jot to all the British Ex-Pats that may well lose.

Ya a mate of mine lives out yon cashy doubt that he'll be a happy bunny

[davebtelford]

I think it is theft - being dressed up as a tax. It will send shivers down the spines of anyone who has savings at banks in other Eurozone countries especially Greece, Spain, Italy, Portugal & Ireland (might as well say ALL of 'em!).

I expect the move will backfire as many savers will remove their money and never trust the banks again.

Again people who have been prudent and saved their money get clobbered while the feckless go scot free!

[jaysay]

Originally Posted by davebtelford

I think it is theft - being dressed up as a tax. It will send shivers down the spines of anyone who has savings at banks in other Eurozone countries especially Greece, Spain, Italy, Portugal & Ireland (might as well say ALL of 'em!).

I expect the move will backfire as many savers will remove their money and never trust the banks again.

Again people who have been prudent and saved their money get clobbered while the feckless go scot free!

There's nothing new there Dave, My parents always saved for their old age and as a consequence were unable to claim any benefits what-so-ever, yet a bloke down the next street was in the pub every night peeing it against the wall and could claim everything, it made my parents think why the hell did we bother

[Boeing Guy]

Part of this problem is this wonderful single currency we call the Euro, if Greece and other states had not 'fudged the figures' in order to join then things may be different, but then again.... if there were not so many Greeks avoiding tax there may have been more in the coffers.
the German taxpayer should not have to bail them out, but of course if there is no bail out then Cyprus will leave the Euro followed by Greece and others, effectively destroying it, something which the Germans and the French want to avoid.

I must go and lie down now, as I am starting to talk like our resident conspiracy theorists.

[Margaret Pilkington]

This raid on savings could have disastrous consequences...with people all over the Eurozone taking money out of the banks, the system will collapse
I am bound to ask if the single currency is worth all the effort...and my answer would have to be NO.
If the countries which require a bailout were allowed to leave the single currency and revert back to their own monetary systems, they could devalue their currency, this would make holidays cheaper/more competitive/attractive, and would bring in tourists......work for those who have no jobs...the countries would be in charge of their own destinies and could even promote fiscal growth.....and the resentment that is felt by the people of the PIGS and Cyprus would fizzle out.

There is a lot of resentment in these countries, at having edicts foisted on them from the EU...especially while the EU mandarins are seen squander money like it is going out of fashion.

[GEaston]

There is not a single example in the history of our planet of a successful monetary union without political union. Every successful currency union required both. Great design then to create a currency without political union and no thought whatsoever to what if (you could say when) it doesn't work.

[GEaston]

Some real problems with reversion to old currency. Take Greece - they only had one printing press for Drachma and that has been in a museum since Euro creation.

Practically you can't go back to the old currency without printing it, lots of it. You also can't print that quantity of old currency in secret. Soon as people find out the old currency is being printed then you have a same day banking run/collapse. The lead up to the Euro was 10 years in the planning with no plan at all for reversion because it was a one way street. Doubtless the EU is thinking about it now, but for the above reasons there's no easy way to do it. Devaluation would be 10x not 10% so if it happens there will be blood on the streets.