Cyprus bank deal reached.

[ZenOps]

http://www.bbc.co.uk/news/world-europe-21916102

Seems to be the plan:

All deposits under 100,000 euros at the nations second largest bank will be transferred without penalty to the nations largest bank.

The second largest banks money is now indefinitely frozen and will be used to pay for the bailout, and eventual dissolution. Anyone owning more than 100,000 euros will probably get 40% percent taken, or whatever is necessary.

Excellent plan, pool all your losers into one and pool all your winners into another. Exactly the way a corporate business would be run, pool what you want to get rid of into one area and then sell it off.

Must be quite a few angry billionaires though.

[BigMass]

Originally posted by ZenOps
http://www.bbc.co.uk/news/world-europe-21916102

Seems to be the plan:

All deposits under 100,000 euros at the nations second largest bank will be transferred without penalty to the nations largest bank.
Anyone owning more than 100,000 euros will probably get 40% percent taken, or whatever is necessary.

Must be quite a few angry billionaires though.

cause only billionaires would have over $100,000 in the bank? Fuck billionaires. You lose %20 on 1 billion and you still have more money than you can spend in a lifetime. Lose %20 on $200,000 and that could be your family’s life savings for your kid’s college and retirement. It still fucks over savers and sends a dangerous message to the rest of the western world that’s wrapped up in this sham of an ultra manipulated economy.

[ZenOps]

Yeah but... Cyprus is an island.

Its pretty safe to say that noone made a million dollars on the island by themselves.

I can imagine they will eventually go for US tax havens like the Cayman Islands as well. If there isn't a mass riot, then I'm thinking Obama will do it.

[Xtrema]

Originally posted by BigMass


cause only billionaires would have over $100,000 in the bank? Fuck billionaires. You lose %20 on 1 billion and you still have more money than you can spend in a lifetime. Lose %20 on $200,000 and that could be your family’s life savings for your kid’s college and retirement. It still fucks over savers and sends a dangerous message to the rest of the western world that’s wrapped up in this sham of an ultra manipulated economy.

Yes and no. This is way better than the last plan.

I really hope we can keep saving and other bank products separate. IE, if you offer saving, you can't offer investment and/or mortgage. Or at least regulate the leverage to 1:1. Ie, you can only offer $300K mortgage if you have collected $300K saving in bank from depositors.

As for depositor actually only getting a 40% off, it's still a good deal. If we follow the idea of letting banks fails, you would have got nothing anyway. The problem is, no government can afford failed banks any more.

Originally posted by ZenOps
I can imagine they will eventually go for US tax havens like the Cayman Islands as well. If there isn't a mass riot, then I'm thinking Obama will do it.

Cayman Island has to fail first. As long as the banks are responsible with their clients' money, it won't happen in the 1st place.

[ExtraSlow]

How much has the world economy spent on rescuing banks and/or "Stimulus" in the last three or four years?

[Xtrema]

Originally posted by ExtraSlow
How much has the world economy spent on rescuing banks and/or "Stimulus" in the last three or four years?

Well, let's see. If you are calculating in term of Gold standard....

There are estimated 10 Billion oz of gold in circulation and the priced went from $650/oz in 2007 to $1700/oz today.

So world economy has poured in $10.5 Trillion?

I'm no economists, let me know if this is a bad way of looking at it.

[BigMass]

Originally posted by Xtrema


Well, let's see. If you are calculating in term of Gold standard....

There are estimated 10 Billion oz of gold in circulation and the priced went from $650/oz in 2007 to $1700/oz today.

So world economy has poured in $10.5 Trillion?

I'm no economists, let me know if this is a bad way of looking at it.

inflation is the best way of looking at it. Looking at the gold price is one way, looking at the increase in M1 money supply is another. Gold is not yet reflecting true money creation due to low velocity. That's why many think it's a good time to buy gold because inflation is there, it just hasn't been fed into the system yet at large. However you can see the effects of inflation in places like the stock market.

[Sugarphreak]

...

[FullFledgedYYC]

I don't know a ton about all this, but my boss was in Cyprus last week and said when he went to look at a prospective home the guy had over 2 million euros sitting in his safe.

Seems a lot of the wealthy knew this was coming and have put their funds somewhere where they won't be taken.

[BigMass]

Originally posted by Sugarphreak

Cyprus has way overstepped the boundries of what is acceptable, what they have done can only be considered theft IMO.

http://finance.yahoo.com/blogs/daily...170851783.html

[Xtrema]

Originally posted by BigMass


http://finance.yahoo.com/blogs/daily...170851783.html

True. But it keeps people working as low interest = more spending, in theory. In practice, private sector is hoarding cash.

If interests goes back to 8-11% in the 80s, everyone will be hoarding $ and economy will be in worst shape which means currency will depreciate too.

You are going to be raped, just how bad.

Wait til China, Russia, Brazil and India wakes up and come up with their own IMF and World Bank. Just watch how quick the western worlds turn into 3rd world.

[Khyron]

Originally posted by Sugarphreak

Cyprus has way overstepped the boundries of what is acceptable, what they have done can only be considered theft IMO.

If you have 1 million in Royal Bank, and they go bankrupt tomorrow, you get 100K in insurance money, the creditors get the rest unless there's actually money left over. You lose the other .9 million. That's not theft, that's bankruptcy.

Getting 60% back from a failure is a bargain.

If you choose to dump all your money into the Imperial Bank of Mexican Drug lords instead of Canada Trust to avoid taxes I don't have a lot of sympathy for you if you lose your shirt.

[bignerd]

Originally posted by FullFledgedYYC
I don't know a ton about all this, but my boss was in Cyprus last week and said when he went to look at a prospective home the guy had over 2 million euros sitting in his safe.

Seems a lot of the wealthy knew this was coming and have put their funds somewhere where they won't be taken.

I am sure if you are part of the ultra-rich living in any of these countries, Greece, Spain, Cyprus, your money was moved to somewhere safe a long long time ago.

[e31]

Originally posted by Khyron


If you choose to dump all your money into the Imperial Bank of Mexican Drug lords instead of Canada Trust to avoid taxes I don't have a lot of sympathy for you if you lose your shirt.

You're talking as if the Banks and Drug lords aren't in cahoots. See HSBC for clarification...

[ZenOps]

http://blogs.canoe.ca/lilleyspad/gen...das-big-banks/

Canada seems to be preparing for bank saving confiscations as well.

To a bank, general deposits are simply liabilities (with maybe 1% interest tacked on it) and if they go insolvent it is no different than if you default on a credit card.

Meaning that money owed will simply not be paid back.

Its a harsh lesson that many have not seen since the end of WWII.

[Sugarphreak]

...

[Xtrema]

Originally posted by ZenOps
http://blogs.canoe.ca/lilleyspad/gen...das-big-banks/

Canada seems to be preparing for bank saving confiscations as well.

To a bank, general deposits are simply liabilities (with maybe 1% interest tacked on it) and if they go insolvent it is no different than if you default on a credit card.

Meaning that money owed will simply not be paid back.

Its a harsh lesson that many have not seen since the end of WWII.

From the language I can read is that government want banks to save themselves. IE, there will be no bail outs.

From a consumer stand point, only $100K is covered by government. Nothing else is guaranteed. Not your mutual funds, not your cash above $100K.

If you are worried, like they said, diversify. Put more cash and get more RRSP products from smaller credit unions and banks like ATB and First Calgary and hope the localization may save you from bigger failures.

But if one of the big 5 fails, the only investment worthwhile is guns and ammos.

[ZenOps]

http://en.wikipedia.org/wiki/Canada_...ce_Corporation

I believe that they will insure up to $100,000 for as long as their pooled insurance funds exist.

"According to the CDIC's 2010 Annual Report, CDIC protects $590 billion CAD in total eligible deposits, and has $1.95 billion CAD in assets to meet insurance claims.[4] This amount represents 0.33% of total eligible deposits. The CDIC is also authorized to borrow up to $17 billion if necessary from the federal government or the financial markets, and may request further funds from Parliament."

So technically, if there was a run on the banks and everyone in Canada was condensed down to 100 people, the first guy in line would get $33,000 and the 99 other people would get nothing.

Fractional Insurance has always been a hundred or thousand to one longshot, its always been much riskier than fractional lending.

[kobe tai]

man that is fucked up. that'll teach you not to save money ever again. or just keep it in a safe at home.

[ZenOps]

I believe that is the overall plan.

Keep people spending, severely punish savers with less than 0.25% or even straight out take it away if they save over $100,000 in dollars or euros.

Obama-nomics with support from the new pope as well.

If you are a saver, be afraid, be very afraid.