Cyprus banks steal deposits from customers

Originally posted by no1marauder
🙄🙄

This problem is because of what private banks did, not what the Cyprus government did. Taking in a ton of Russian money and using it to buy Greek bonds isn't exactly the most prudent investment model.

The banks are in bed with government everywhere goofus.

Originally posted by joe beyser
The banks are in bed with government everywhere goofus.

Yes, and the bankers pay the government folks for that time in bed. What's odd, is that third parties get screvved by both of them.

Originally posted by no1marauder
🙄🙄

This problem is because of what private banks did, not what the Cyprus government did. Taking in a ton of Russian money and using it to buy Greek bonds isn't exactly the most prudent investment model.

Cypriots are having their wealth seized because of the irresponsibility of an elitist government. Quantitative easing is mostly invisible. This is quite visible indeed.

Originally posted by sasquatch672
Cypriots are having their wealth seized because of the irresponsibility of an elitist government. Quantitative easing is mostly invisible. This is quite visible indeed.

Evidently, most of the money that would be taken is Russian money.

Originally posted by Eladar
Evidently, most of the money that would be taken is Russian money.

True enough. Anything that Putin dislikes can't be all bad I suppose.

My point is the danger is not to Cyprus. The danger is to the Continent.

Originally posted by Eladar
Evidently, most of the money that would be taken is Russian money.

Reportedly as well, the whole thing comes from these banks catering to their depositors' desire for a high ROI which led them to make high risk investments which failed and so the banks are failing, and the government if Cyprus can't or won't bail them out. The entire economy of Cyprus is driven by this desire for foreign money which they attracted with low tax rates and risky investments. All the bank's depositors knew or should have known the risk situation, not just the benefit situation they were setting up. Of course there are genuine victims, but there are a lot of whiners who got hoisted on their own petard.

Example:

Straddling both Ukraine and Cyprus, agricultural production company UkrLandFarming PLC is selling a debut dollar bond Tuesday, despite analyst concerns over Ukrainian and Russian companies' use of the Cypriot banking system as a transaction hub.

Cyprus's government is scrambling for support of a controversial draft bill that will tax deposits as part of an international 10 billion euro ($12.93 billion) bailout, forcing banks to possibly remain closed for longer than planned, while raising less revenue from a controversial deposit tax than required for the bailout.

Market watchers said demand could still be strong if the company can offer a yield sufficiently attractive for investors to take the risk.

Junk-rated UkrLandFarming, headquartered in Cyprus and with operations in Ukraine, is selling a dollar benchmark-sized, five-year bond, that is expected to yield in the high 10%.

http://online.wsj.com/article/BT-CO-20130319-708040.html

Of course, such a levy is no different in principle from a tax on capital/capital gains, the likes of which exist in almost every country in the world. But psychologically, it's not a very smart move. If you give a lollipop to a kid and then take it away, it will start crying.

Originally posted by KazetNagorra
Of course, such a levy is no different in principle from a tax on capital/capital gains, the likes of which exist in almost every country in the world. But psychologically, it's not a very smart move. If you give a lollipop to a kid and then take it away, it will start crying.

It is a bit different. But it does expose the reality that taxes are theft.

Originally posted by normbenign
It is a bit different. But it does expose the reality that taxes are theft.

Ah, playing the anarchist again, are we?

Originally posted by KazetNagorra
Ah, playing the anarchist again, are we?

No, but the comparisons with so called legitimate taxation, tends to expose the legitimate for what it is.

Originally posted by normbenign
No, but the comparisons with so called legitimate taxation, tends to expose the legitimate for what it is.

Given that you are not an anarchist, the government that you do support has to be funded somehow. How should it be funded and why using this method?

Here's an update for you playmates.

The Cyprus Government has backed off
taxing deposit accounts.

And this just in........The Parliament has voted down
the offer of a 10 billion Euro bailout from Europe.
The Cypriot people don't want Germany involved
in their affairs. There are thousands in the streets
screaming.

Meanwhile the banks in Cyprus remain closed until Thursday
and after that bailout rejection tomorrows markets will
be very bleak.

Time to climb out the window and stand on that ledge.

The EU has made some pretty idiotic decisions in its time, but this may well rank as the most mind-boggling stupid of them all.

The Eurozone crisis has only averted becoming a major catastrophe by Governments giving absolute 'guarantees' that bank deposits are safe to prevent a run on the banks. So what do the loons in Brussels do? Send people the clearest of signals their money may not, after all, be safe and might, in fact, be confiscated if they were foolish enough to keep in it in the banks. Can't imagine for the life of me how depositors in Spain, Italy and Portugal might react to this.

They have to come out tomorrow and confirm that no such tax will ever be made a condition of a rescue package. If they don't, the 6bn or so they want Cyprus to cough up will look like small change.

Originally posted by Rank outsider
The EU has made some pretty idiotic decisions in its time, but this may well rank as the most mind-boggling stupid of them all.

The Eurozone crisis has only averted becoming a major catastrophe by Governments giving absolute 'guarantees' that bank deposits are safe to prevent a run on the banks. So what do the loons in Brussels do? Send people the ...[text shortened]... age. If they don't, the 6bn or so they want Cyprus to cough up will look like small change.

At long last...someone who understands the world.

Originally posted by KazetNagorra
Given that you are not an anarchist, the government that you do support has to be funded somehow. How should it be funded and why using this method?

Legitimate taxation ought to be proportionate, and at fixed rates, and never retroactive. QE, or intentional inflation is the worst and least transparent of taxes, and often the most discriminatory.