11–20 of 52 posts
Maybe this is a terrifically ignorant comment, but it seems like the government mismanages their finances, as a result, they want the everyman to throw away 10% of their bank deposits? WTF?
It's bald-faced confiscation of individuals' savings in order to bail out mismanaged banks.
The depositors are being rescued here. They trusted their money to banks that went on to make loans to the Greek government. The Greek government defaulted. A significant portion of the depositors money is gone. Nobody is confiscating anything. International institutions are helping Cyprus, by covering part of the losses. Unfortunately there is nobody willing to pay the amount necessary to make the depositors full again.
One might argue that this is bad, and that the EU/IMF/ECB should make the depositors full, without an haircut, but that is another story.
As in: bank with us because we are financially sound (instead of: because we pay higher interest, or whatever). It's not happening yet.
These banks were paying 9+ percent interest on some accounts. If it sounds too good to be true, it probably is.
It's bald-faced confiscation of individuals' savings in order to bail out mismanaged banks.
If the Cyprus government, EU, FMI and ECB were to do nothing it is almost certain that the depositors would see much less than 90 cents on the euro. The depositors are being rescued here. They trusted their money to banks that went on to make loans to the Greek government. The Greek government defaulted. A significant portion of the depositors money is gone. Nobody is confiscating anything. International institutions…
Why good financial management is not a competitive factor amongst banks? As in: bank with us because we are financially sound (instead of: because we pay higher interest, or whatever). It's not happening yet.
There is nothing to stop customers banking on this basis. They still don't, perhaps largely because the government insures up to $1xx,xxx in deposits (I forget the number) so a lot of people are covered no matter what happens to their bank.
as a Cypriot who will lose part of his money I believe voting for this measure is the best of the two options even though both are bad for us.
In the USA, taking 7+% of everyone's savings on short notice would initiate a civil war. Can't imagine how another alternative would be worse.
Maybe this is a terrifically ignorant comment, but it seems like the government mismanages their finances, as a result, they want the everyman to throw away 10% of their bank deposits? WTF?
The government didn't mismanage its finances, the banks did. The levy would be to cover the banks' debt.