NZ could 'pull a Cyprus' some day
#31
Re: NZ could 'pull a Cyprus' some day
Where do you think all those 'Saxon treasure troves' came from?
#32
Forum Regular
Joined: Jan 2013
Location: North East England (for now)
Posts: 95
Re: NZ could 'pull a Cyprus' some day
Really is no surprise so many people take to putting it under their mattress...
#34
Re: NZ could 'pull a Cyprus' some day
Just checked the exchange rate, the $/€ rate is important to me.
Its at $=€0.6445 which is the highest I have ever seen in a couple of years.
Why, Cyprus is about to go broke, unless they pull a rabbit out the hat. Next will be Greece, then Portugal, Ireland and Italy.
EU is doomed and its not good news for the UK or anyone else in Europe.
http://www.bbc.co.uk/news/world-europe-21885301
Its at $=€0.6445 which is the highest I have ever seen in a couple of years.
Why, Cyprus is about to go broke, unless they pull a rabbit out the hat. Next will be Greece, then Portugal, Ireland and Italy.
EU is doomed and its not good news for the UK or anyone else in Europe.
http://www.bbc.co.uk/news/world-europe-21885301
#35
Re: NZ could 'pull a Cyprus' some day
Interesting article. Here's the bit I don't understand: "Cypriot banks were among the bondholders who had to take a big "haircut" in the second massive bailout for Greece."
So, if the Cypriot banks 'took a big haircut' from Greece's bailout, how come Germany, France and/or whoever loaned the Cypriot's a bailout don't get to 'take a big haircut', and instead it's the Cypriot depositors who get scalped?
Seems sauce for the goose is not necessarily sauce for the gander.
And does Spain REALLY have a GDP of a trillion Euros???? Doing/selling WHAT???
So, if the Cypriot banks 'took a big haircut' from Greece's bailout, how come Germany, France and/or whoever loaned the Cypriot's a bailout don't get to 'take a big haircut', and instead it's the Cypriot depositors who get scalped?
Seems sauce for the goose is not necessarily sauce for the gander.
And does Spain REALLY have a GDP of a trillion Euros???? Doing/selling WHAT???
#36
BE Enthusiast
Joined: Jul 2008
Location: Auckland
Posts: 463
Re: NZ could 'pull a Cyprus' some day
Interesting article. Here's the bit I don't understand: "Cypriot banks were among the bondholders who had to take a big "haircut" in the second massive bailout for Greece."
So, if the Cypriot banks 'took a big haircut' from Greece's bailout, how come Germany, France and/or whoever loaned the Cypriot's a bailout don't get to 'take a big haircut', and instead it's the Cypriot depositors who get scalped?
Seems sauce for the goose is not necessarily sauce for the gander.
So, if the Cypriot banks 'took a big haircut' from Greece's bailout, how come Germany, France and/or whoever loaned the Cypriot's a bailout don't get to 'take a big haircut', and instead it's the Cypriot depositors who get scalped?
Seems sauce for the goose is not necessarily sauce for the gander.
Germany is growing weary of EU taxpayers continuing to fork out to keep propping up the southern states.
It also doesn't help that a significant proportion of the deposits in Cypriot banks belong to Russian money-launderers and oligarchs hiding their money, so again, is EU taxpayer money really to be spent making sure these people don't lose out?
#38
Re: NZ could 'pull a Cyprus' some day
Oh quap! Just seen this on Zero Hedge:
"As Europe wakes up to what could be a tumultuous day, Handelsblatt reports that the ECB has decided that, due to the "great danger" of a bank run once they reopen next week, it will enforce capital controls independently of Cypriot (elected) officials. With perhaps a nod towards negotiating some ELA funding for Cypriot banks next week (if the government accepts this ECB-enforced 'program'), the rather stunning restrictions on people's private property include:
Freezing Savings - no time-frame (it's not your money anymore)
Make bank transfers dependent on Central Bank approval (a money tzar?)
Lower ATM withdrawal limits (spend it how we say?)
The capital controls will be designed "so that citizens have access to sufficient cash to go about their lives." So, there it is, a European Union imposed decision on just how much money each Cypriot can spend per day. Wasn't it just last week, we were told Europe is fixed?
Handelsblatt cites unidentified central bank sources so we wonder whether this is yet another strawman shot across the bow as the Cypriot government heads in for an early start of discussions at 10am (GMT)"
If this is the case, the proverbial will really hit the whirling item.
"As Europe wakes up to what could be a tumultuous day, Handelsblatt reports that the ECB has decided that, due to the "great danger" of a bank run once they reopen next week, it will enforce capital controls independently of Cypriot (elected) officials. With perhaps a nod towards negotiating some ELA funding for Cypriot banks next week (if the government accepts this ECB-enforced 'program'), the rather stunning restrictions on people's private property include:
Freezing Savings - no time-frame (it's not your money anymore)
Make bank transfers dependent on Central Bank approval (a money tzar?)
Lower ATM withdrawal limits (spend it how we say?)
The capital controls will be designed "so that citizens have access to sufficient cash to go about their lives." So, there it is, a European Union imposed decision on just how much money each Cypriot can spend per day. Wasn't it just last week, we were told Europe is fixed?
Handelsblatt cites unidentified central bank sources so we wonder whether this is yet another strawman shot across the bow as the Cypriot government heads in for an early start of discussions at 10am (GMT)"
If this is the case, the proverbial will really hit the whirling item.
#39
BE Enthusiast
Joined: Jul 2008
Location: Auckland
Posts: 463
Re: NZ could 'pull a Cyprus' some day
I think some of my family have a house in Cyprus. I guess I'll hear more about it all next time I phone them.
At least if the Ozzie banks fail we wouldn't have to go through this suspense - our money would be gone in one short sharp shock.
#40
Re: NZ could 'pull a Cyprus' some day
I fear it will. It doesn't look as though Russia will help them out, there's hardly anywhere left for them to run.
I think some of my family have a house in Cyprus. I guess I'll hear more about it all next time I phone them.
At least if the Ozzie banks fail we wouldn't have to go through this suspense - our money would be gone in one short sharp shock.
I think some of my family have a house in Cyprus. I guess I'll hear more about it all next time I phone them.
At least if the Ozzie banks fail we wouldn't have to go through this suspense - our money would be gone in one short sharp shock.
Aussie banks stealing depositors property? I doubt it. Unlike the Europeans the Aussies and Kiwis would tar, feather and ride the banksters and politicians out of the country on rails, if they tried pulling that crap.
Not that that is going to stop me from turning my banked funds into something which will hold its value, whatever happens to cash / currency. Land, and PM.
#42
Re: NZ could 'pull a Cyprus' some day
Apparently it's happened:
"While it is unknown if the Cypriot parliament will agree to, and enact into law, the Troika-demanded deposit haircuts, after the shocking vote of mutiny against Merkel earlier this week that saw not one politician vote for the Europe suggested deposit tax levy (and even the ruling party abstained), a vote which will once more take place tomorrow, moments ago Cyprus became the first Eurozone country to officially implement governmental capital controls into legislation. At this point it had no choice: whatever happens with the deposit haircut, or with everything else, it is now inevitable that the local Cypriots will do all they can to pull as much money from domestic banking system as possible following the complete loss of faith and trust in banks, which is why the government had no choice but to intervene with its own "controls." Sadly, this marks a milestone in the development of the Eurozone - it's all downhill, and accelerating, from here. "
http://www.zerohedge.com/news/2013-0...l-controls-law
Warning: if you click on the link, the comments after the post are not moderated, and the language is 'unmodified'. In fact, there's a lot of effing and blinding. Those of a 'delicate disposition' are warned not to scroll down!
Witness the end of the Euro.... witness the end of banking as we know it, for that matter!
"While it is unknown if the Cypriot parliament will agree to, and enact into law, the Troika-demanded deposit haircuts, after the shocking vote of mutiny against Merkel earlier this week that saw not one politician vote for the Europe suggested deposit tax levy (and even the ruling party abstained), a vote which will once more take place tomorrow, moments ago Cyprus became the first Eurozone country to officially implement governmental capital controls into legislation. At this point it had no choice: whatever happens with the deposit haircut, or with everything else, it is now inevitable that the local Cypriots will do all they can to pull as much money from domestic banking system as possible following the complete loss of faith and trust in banks, which is why the government had no choice but to intervene with its own "controls." Sadly, this marks a milestone in the development of the Eurozone - it's all downhill, and accelerating, from here. "
http://www.zerohedge.com/news/2013-0...l-controls-law
Warning: if you click on the link, the comments after the post are not moderated, and the language is 'unmodified'. In fact, there's a lot of effing and blinding. Those of a 'delicate disposition' are warned not to scroll down!
Witness the end of the Euro.... witness the end of banking as we know it, for that matter!
#43
Re: NZ could 'pull a Cyprus' some day
I disagree (not on the inevitable Cypriot bank run obv. but the fall of the euro), this is a more palatable option. However there can now be no suggestion that any EU bank could fail or depositors will flee, this precedent has greatly eroded confidence in the European banking system.
Also this may just be the start for Cyprus.
Also this may just be the start for Cyprus.
#44
Re: NZ could 'pull a Cyprus' some day
I disagree (not on the inevitable Cypriot bank run obv. but the fall of the euro), this is a more palatable option. However there can now be no suggestion that any EU bank could fail or depositors will flee, this precedent has greatly eroded confidence in the European banking system.
Also this may just be the start for Cyprus.
Also this may just be the start for Cyprus.
Freezing Savings
Make bank transfers dependent on Central Bank approval
Lower ATM withdrawal limits
at all 'palatable'. If it's MY money in the bank, then it's up to ME how I spend it, when I spend it, and where I spend it. It's not, IMO, up to some faceless bankster who screwed up the bank in the first place, by not doing his due dilligence, or some equally faceless beuro-rat dipping his face into the public trough and deciding on how much of my money to steal whenever he likes.
That's the trouble with these people - they never know when to stop!! Once they get a taste of helping themselves to depositors money they will be hooked, and like any addict, will be unable to stop taking.
And I don't understand your statement "However there can now be no suggestion that any EU bank could fail or depositors will flee". Don't you mean "However there can now be no question that any EU bank could fail or depositors will flee"?