RandomGenerator Posted March 17, 2013 Share Posted March 17, 2013 Not forgetting of course the potential opportunity for the Island! With our 1000 year reputation intact we may be a bit more attractive today then we were yesterday so long as we are prepared to say no to the dodgy stuff and only welcome good safe funds, this may just help us out a bit! Link to comment Share on other sites More sharing options...
Tugger Posted March 17, 2013 Share Posted March 17, 2013 I've had a bit of a dig for more information and it seems that depositors with 100,000 euros or less had good reason to think their deposits were guaranteed, but not over that limit. For the smaller depositors then, I agree, it is a scandal. Not for the larger ones though Link to comment Share on other sites More sharing options...
hboy Posted March 17, 2013 Author Share Posted March 17, 2013 I've had a bit of a dig for more information and it seems that depositors with 100,000 euros or less had good reason to think their deposits were guaranteed, but not over that limit. For the smaller depositors then, I agree, it is a scandal. Not for the larger ones though But the basic problem here is that the depositors who have saved hard to get €100,000 in the bank didn't make the bank go bust - the muppets running the bank and lending stupidly did that. So they are going to feel pretty hard done by that their cash is being used to prop up banks that they have had nothing to do with other than putting money in them as savers. In the Manx DCS the investors are paid out from a levy on the banks in the scheme not by a levy on the personal assets of thousands of accounts under the custodianship of the bank - this is a special "tax" on every deposit account not a bank levy. I can really see this running and running across Europe. Its a genuinely appalling decision for the average man in the street who is just going to feel shafted by the EU when the money gets taken from his account. They'll make the withdrawal queues outside the Northern Rock when it was going down seem insignificant by comparison. Link to comment Share on other sites More sharing options...
Nom de plume Posted March 17, 2013 Share Posted March 17, 2013 You fear for the liquidity of the Cypriot banks by close of business Tuesday (tomorrow being a public holiday) ... This is the biggest scandal of the EU experiment bar none in my view. Horrendous policy and the beginning of the end. Link to comment Share on other sites More sharing options...
RandomGenerator Posted March 17, 2013 Share Posted March 17, 2013 It's underhand, and it was the Government that imposed it. It won't affect me and I'm gutted, I can imagine how I would feel if I were directly affected by it! Nothing less than disgraceful. Whilst I am generally in support of the IOM becoming an EU member in some way or other in order to open up trade in more sectors that just agriculture, today I am glad we are well out of it. Link to comment Share on other sites More sharing options...
Karellen Posted March 18, 2013 Share Posted March 18, 2013 In a sneakier way it has already happened here. You have already lost more than 10% of the value of your Sterling deposits through the british government's policy of a weak pound and QE. Imagine if, 6 month ago, you had converted all of your Pounds into Euros and moved to Cyprus. Yes, this tax means you loose 10% of your euro deposits, but in Sterling terms you are no worse off. Link to comment Share on other sites More sharing options...
ScotsAlan Posted March 18, 2013 Share Posted March 18, 2013 Wonder if they will be robbing the charity accounts as well. Link to comment Share on other sites More sharing options...
Lxxx Posted March 18, 2013 Share Posted March 18, 2013 In a sneakier way it has already happened here. You have already lost more than 10% of the value of your Sterling deposits through the british government's policy of a weak pound and QE. Imagine if, 6 month ago, you had converted all of your Pounds into Euros and moved to Cyprus. Yes, this tax means you loose 10% of your euro deposits, but in Sterling terms you are no worse off. True, but at least we still have the same number of fiat currency units in our account, regardless of the 'value' of them. The poor people of Cyprus now have 10% less units than they did last week. It's state sponsored theft pure and simple. Which just highlights the fact that the minute you deposit your cash into a bank, you then become a creditor of that organisation and at the mercy of a government mandate. Wouldn't surprise me if this happened elsewhere as this thing escalates. Link to comment Share on other sites More sharing options...
The Thriller Posted March 18, 2013 Share Posted March 18, 2013 Noticed people on the news not being able to get money from the cash machines cus they have been emptied. Im going there soon so should i leave my cash card at home and just take euros ;-)) Link to comment Share on other sites More sharing options...
ballaughbiker Posted March 18, 2013 Share Posted March 18, 2013 or $ Link to comment Share on other sites More sharing options...
ScotsAlan Posted March 19, 2013 Share Posted March 19, 2013 Will they pay money to anyone overdrawn? Link to comment Share on other sites More sharing options...
Tempus Fugit Posted March 19, 2013 Share Posted March 19, 2013 interesting comment from a businesswoman on tv, that the funds in her business account were from customers to pay for goods and services, if they are going to rob a % of those does she have to charge the customers more to pay for what they have ordered or does she have to take the loss ? I think anyone with savings in banks have had a bad deal for way too long, hardly any interest, and the banks would be in a right pickle (or more colourful words) if everyone just withdrew all their savings and put UTM as it's just dead money where it is (probably why people have been buying property to let for years as it earns a better %) It's surprising that a sort of 'black market' hasn't sprung up, everything paid in cash, nothing going through the bank (or the books !) like a parallel economy Link to comment Share on other sites More sharing options...
Slim Posted March 19, 2013 Share Posted March 19, 2013 I think anyone with savings in banks have had a bad deal for way too long, hardly any interest, and the banks would be in a right pickle (or more colourful words) if everyone just withdrew all their savings and put UTM as it's just dead money where it is (probably why people have been buying property to let for years as it earns a better %) It's surprising that a sort of 'black market' hasn't sprung up, everything paid in cash, nothing going through the bank (or the books !) like a parallel economy Don't forget that the banks do provide services 'for free', on-line banking, deposit protection, direct debits, etc and they're also not earning much interest on deposits or loans because the rates are so bad. Link to comment Share on other sites More sharing options...
Lxxx Posted March 19, 2013 Share Posted March 19, 2013 I see the levy bill has been rejected by the Cypriot Parliament. Let's see what happens now they've called Germany's bluff..... Link to comment Share on other sites More sharing options...
GD4ELI Posted March 19, 2013 Share Posted March 19, 2013 I see the levy bill has been rejected by the Cypriot Parliament. Let's see what happens now they've called Germany's bluff..... It's not a bluff - remember that the German politicians have to sell the concept to their own electorate. Cyprus has very large gas deposits, enough to power Switzerland for 200 years, this should come online in 2020 so I expect a deal to be negotiated with these deposits as security. Link to comment Share on other sites More sharing options...
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