Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

“My bank account's got robbed by European Commission. Over 700k is lost.”

bitcointalk.org

Post reply on HN
Print view View original

81–90 of 174 posts

Re: “My bank account's got robbed by European Commission. Over 700k is lost.”

#81

Post by Guthur »

It amazes me how many people mention tax evasion, and other excuses for apportioning of liability.

The liability should lie with the people who bought the Cypriot/Greek debt in the first place. They are the ones that in essence lent the money to these two tiny countries when it was obvious it was out of control and would blow up.

But where is the incentive not too when the liability is offloaded to people who had no part in the debt transaction; either the citizens or other third parties.

To me these risk balances are way out of whack and are just asking for the irresponsible fiscal activities we are seeing.

Re: “My bank account's got robbed by European Commission. Over 700k is lost.”

#82

Post by adventured »

JumpCrisscross wrote: post #35

When you deposit money in a bank you become a protected senior creditor, but creditor nonetheleas, to the bank. The government insures the first €100 000 or $250 000 against losses, but that guarantee is only as good as the government. Jeroen Dijsselbloem, president of the eurogroup, told the FT as the bailout was announced: “ If we want to have a healthy, sound financial sector, the only way is to say: ‘Look, where…

No, don't buy treasuries. Getting back inflation destroyed dollars is not risk free, in fact you're getting defrauded because you're not actually getting your money back at all.

A quick check on what dollars will buy (the true judge of the value of a currency), spanning 10, 20, 30, 50, 100 years tells you everything you need to know about the destruction your capital will suffer while yielding almost nothing to offset the devaluation. And now the Fed is working harder than ever before to abuse the global reserve FRN standard.

Now is the absolute worst time possible to buy treasuries. The era of cheap money is coming to a close with a frantic flailing about of currency devaluations, binge stimulus, bailouts, and robberies. Anybody that claims hyper cheap money lasts forever, is selling a pipedream (which may be accompanied with the words: it's different this time).

Re: “My bank account's got robbed by European Commission. Over 700k is lost.”

#83

Post by X-Istence »

gurvinder wrote: post #45
aaron695 wrote: post #19

Putting money in an uninsured bank is an investment the same stocks or property. If the asset you invest in fails you lose your money. Don't see how this is the European Commission robbing anyone. I thought (But could be wrong) without the bailout all the money would be lost. Isn't this them giving someone who's lost it all 20% of their money back?

So where you suggest people should keep their money if the only insurance they can get for their deposit is Euro 100k ? Matresses? Safes? Bailout or no bailout, all money in Laikie is lost except what was insured. Some interesting points 1) Laikie bank also had a loan of 9 Billion from ECB, that won't be written off , even though depositor's money is written off. That loan will be transferred to Bank of Cyprus. 2) Ou…

The same thing is the case here in the US. FDIC insures up to 250k. After that you are liable to lose it if the bank goes tits up.

In this case, the bank went tits up, he got his 100k EUR back from insurance.

As for mortgages and loans, those aren't insured to the bank either (unless underwritten by the gov't ...), so if YOU go bankrupt the bank is out that money. In most cases you have some equity backing that loan so even if you go bankrupt some part of the money can be recovered by for example selling your house.

Re: “My bank account's got robbed by European Commission. Over 700k is lost.”

#85

Post by bayesianhorse »

adventured wrote: post #82
JumpCrisscross wrote: post #35

When you deposit money in a bank you become a protected senior creditor, but creditor nonetheleas, to the bank. The government insures the first €100 000 or $250 000 against losses, but that guarantee is only as good as the government. Jeroen Dijsselbloem, president of the eurogroup, told the FT as the bailout was announced: “ If we want to have a healthy, sound financial sector, the only way is to say: ‘Look, where…

No, don't buy treasuries. Getting back inflation destroyed dollars is not risk free, in fact you're getting defrauded because you're not actually getting your money back at all. A quick check on what dollars will buy (the true judge of the value of a currency), spanning 10, 20, 30, 50, 100 years tells you everything you need to know about the destruction your capital will suffer while yielding almost nothing to offse…

That's plain wrong. You don't buy treasury bonds unless you know the interest rate. Even after all the bail outs, all the crisis and despite rising government debt there is no safer investment.

It's just usually not used as the sole investment, but rather the safest position in portfolio...

Re: “My bank account's got robbed by European Commission. Over 700k is lost.”

#86

Post by gurvinder »

JumpCrisscross wrote: post #35

When you deposit money in a bank you become a protected senior creditor, but creditor nonetheleas, to the bank. The government insures the first €100 000 or $250 000 against losses, but that guarantee is only as good as the government. Jeroen Dijsselbloem, president of the eurogroup, told the FT as the bailout was announced: “ If we want to have a healthy, sound financial sector, the only way is to say: ‘Look, where…

"When you deposit money in a bank you become a protected senior creditor, but creditor nonetheleas, to the bank."

This might be true when you put your money in savings account, and are earning an interest on it. But what if you are paying the bank for keeping your money safe, and paying them recurring fees to operate a current account which doesn't earn any interest? Most businesses need an operating account to pay for day to day expenses. And current account should be treated like SAFES, as bank is actually charging money for them and not paying any interests.

Re: “My bank account's got robbed by European Commission. Over 700k is lost.”

#87

Post by rplacd »

pliny wrote: post #39
mkdir wrote: post #23

Earlier quoted context omitted.

I'm not sure why, but natermer's past several posts are all dead. He wrote: > The people running the government, which uses the taxes to secure loans that they have no intention on paying back, in order to prop up a failing economy that is failing because of the rules and regulations that are setup to maximize the illigit profit for said people running government.. those are the real gangsters. > Most large state gov…

I don't know what country OP lives in specifically, but what you quoted is wrong for the majority of European countries, who are neither tyrannical nor are they run by 'political and family dynasties'. Perhaps whoever you quoted was making a good case for not cooperating (taxes or otherwise) with tyrannical governments, but the situation in most European countries is that the government is democratic, progressive, an…

Since the OP wasn't originally raised to be specifically responded to, I'll post my thoughts here as well -

- there are plenty of ways to distribute "less taxes", and if "mafiaesque government" remains constant, then that implies that taxes just simply need be distributed less equitably to satisfy that condition.

Re: “My bank account's got robbed by European Commission. Over 700k is lost.”

#88

Post by bayesianhorse »

Basically, someone deposited his money in a tax haven, with patently risky banks. Then the banks went into trouble. The European Union tries to help them avoid total loss, and now that same someone blames the EU for the partial loss.

Total loss was the alternative to the bailout...

Re: “My bank account's got robbed by European Commission. Over 700k is lost.”

#89

Post by bitcartel »

JumpCrisscross wrote: post #35

When you deposit money in a bank you become a protected senior creditor, but creditor nonetheleas, to the bank. The government insures the first €100 000 or $250 000 against losses, but that guarantee is only as good as the government. Jeroen Dijsselbloem, president of the eurogroup, told the FT as the bailout was announced: “ If we want to have a healthy, sound financial sector, the only way is to say: ‘Look, where…

When push comes to shove, the deposit guarantee may not protect your money.

"Back in December 2012 the FDIC and the BoE published a joint paper outlining their new approach for how to resolve any future collapse of one of the Too-Big-To-Fail banks...

'deposit guarantee schemes may be required to contribute to the recapitalization of the firm'[1][2]

...the new system raids the Deposit Protection scheme, gives it to the bank instead of you and when that fails to save the bank…then what? The bank fails again and there is no money left in the Deposit Guarantee scheme."

[1] http://www.golemxiv.co.uk/2013/03/plunderball-the-new-euro-b...

[2] http://www.bankofengland.co.uk/publications/Documents/news/2...

Re: “My bank account's got robbed by European Commission. Over 700k is lost.”

#90

Post by anigbrowl »

pliny wrote: post #47
Shenglong wrote: post #37

Background and summary (forgive me if some details need correcting): Cyprus is a tiny country with a GDP not much higher than Tim Hortons. Yet, it had something like 150 billion in private funds stored in two of its banks: the Bank of Cyprus and Lakie. Why? Because the majority of the funds (I am generalizing) belongs/belonged to Russians who took advantage of the people on the conversion out of communism (dirty mone…

>because a large portion of the Cyprus population are of Greek descent. Thus, when the banks were figuring out where to invest, a large portion of the funds went to Greece What a responsible investment strategy. 'What should we invest all this Russian gangster money in?' 'Well, I like goat cheese.'

I suppose you think they should have sunk it all into aqueducts and amphitheaters.
Post reply on HN