I was born and raised in Cyprus and my entire family still lives there. I spoke to a few of them this morning and whether the measures pass or not (parliament still needs to approve) they all plan on making a run to the bank asap.
The madness of the bailout in Cyprus
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Re: The madness of the bailout in Cyprus
#12[deleted]
Actually, what's preventing someone from just putting their savings in bitcoin, waiting on the tax issues to pass, and moving it back?
Re: The madness of the bailout in Cyprus
#13Expect this to happen all over Europe. In particular England. It has happened before and will happen again, until the fuckers in charge understand and learn. But no one would vote on the guy calling for budget cuts. Everyone likes the guy with the hand outs.
According to the article government spending wasn't the problem here, the problem was Cypriot banks making bad investment decisions.
My understanding is that banks in Cyprus are heavily invested in Greek bonds (makes sense given the shared language/culture/etc) and that the Greek bailout resulted in the bondholders taking a 50% "haircut" which set off the current banking crisis in Cyprus. And now the "solution" to the problem in Cyprus is likely to set off bank runs in other troubled Eurozone economies. One domino knocks over the next ...
Edit: half of this is in the article which I didn't read before commenting ;-)
Re: The madness of the bailout in Cyprus
#14[deleted]
>If the Bitcoin crypto currency were more developed and widespread, this event could the silver bullet that would trigger the beginning of the end of the traditional banking system.
You cannot be serious.
Re: The madness of the bailout in Cyprus
#15Re: The madness of the bailout in Cyprus
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#18Funny that it's targeting only bank accounts and completely ignoring all other liquid assets.
By which I mean: Holy shit, if this isn't targeted directly at middle class and lower households and small businesses, I don't know what would be.
Also, these guys have all got to be huffing paint if they think a run on the banks won't be a direct result EVEN AFTER THE MONEY IS GONE.
Re: The madness of the bailout in Cyprus
#19Expect this to happen all over Europe. In particular England. It has happened before and will happen again, until the fuckers in charge understand and learn. But no one would vote on the guy calling for budget cuts. Everyone likes the guy with the hand outs.
"England" isn't in the euro, it has a central bank that can and will print money if required. If anything chances are the UK will be on the receiving end of any money transferred out of Greece, Portugal, Spain e.t.c. because it's within the EU (and therefore other EU citizens can easily open bank accounts) but not inside the eurozone (the UK has not funded any of the EU bailouts except via contributions to the IMF)
Re: The madness of the bailout in Cyprus
#20I was born and raised in Cyprus and my entire family still lives there. I spoke to a few of them this morning and whether the measures pass or not (parliament still needs to approve) they all plan on making a run to the bank asap.
Money's already been taken out of the 9,9% accounts dude. And electronic transfers are frozen.