cyprus taxing bank accounts 10%

**KTP** · 03-21-2013, 06:22 AM

they voted against taxing the bank accounts.

now the banks will fail and we have another lehman bro except in europe this time

should be good for gold though

**97guns** · 03-21-2013, 06:46 AM

**Mr Nice Guy** · 03-21-2013, 07:04 AM

The sky is falling, the sky is falling....

**Mr Nice Guy** · 03-21-2013, 07:08 AM

Are you trying to drive up demand for silver or something?

**97guns** · 03-21-2013, 07:12 AM

not trying to get nothing, just wondering why there was no mention of it here and other mainstream avenues, maybe i am trying to get people to yank it out

**humandraydel** · 03-21-2013, 03:52 PM

Originally posted by 97guns View Post

March 20th, 2013 - BERNANKE STATES CYPRUS STYLE DEPOSITOR HAIRCUTS POSSIBLE IN US IF EVENTS IN EUROPE BECOME CONTAGIOUS!

I stopped at this. Honestly, posting garbage like this is why no one responds. Even IF it WAS a possibility, do you actually think Bernanke would make this statement? There is absolutely 0% chance Bernanke would ever make this statement even if he thought it true.

The internet - synonym for "propaganda"

**dunnrobert700** · 03-21-2013, 06:32 PM

Probably because the entire GDP of Cyprus is the same as Shreveport LA, it's not a lot of money and it's a fairly special case because Germany doesn't want to use German tax dollars to bail out a bunch of Russian tax dodging business magnates (or "Oligarchs" as they like to call them).

The only freakout is the very idea that the EU central bank might impose this condition on any member nation as a condition. Makes people question banks, especially if people under 100K get hit at all as they were supposedly insured.

Really it's just a question of form. If you think ZIRP in the US isn't a wealth tax you're not looking at it right. It's just slower and less overt, but the same effect.

**bUU** · 03-22-2013, 01:20 AM

That's ridiculous. There is a difference between not gaining interest and having principal reduced. As a matter of fact, ZIRP is two quantum shifts away from a "wealth tax". First: It would have to change from something where you simply have the same amount of money, into something where you actually have less money - Quantum Shift 1. Then it would need to change from something where income is being partially directed away into something where wealth is being partially directed away - Quantum Shift 2.

**97guns** · 03-22-2013, 07:08 AM

you guys really need to open your eyes and see whats going on before its too late, for those that dont trust rogue journalism

here is one straight from the front page of yahoo, right where you feel comfortable, enjoy.

Cyprus Still in Crisis as Monday Deadline Approaches

http://finance.yahoo.com/blogs/daily-ticker/cyprus-still-crisis-monday-deadline-approaches-141227303.html

It’s just a little island with a population of 1.1 million but Cyprus has the world’s attention. If its government does not come up with a viable plan to fund a portion of the financial bailout it desperately needs there will be no bailout and Cyprus would mostly have to leave the Eurozone. That, in [...]

**jpg7n16** · 03-22-2013, 07:21 AM

I don't get why this is such a shock.

Europe has been struggling financially now for a while. It's a small country with only like 1.1 million people. Of all the countries that would go under, it'd probably be them.

Why is that such a shock?

We have 9 cities each with more people than the whole country of Cyprus. And our GDP is over 600 times larger. But population only 313 times larger. (In other words, twice the per capita GDP) I think we're good.

Top 50 Cities in the U.S. by Population & Rank

http://www.infoplease.com/ipa/A0763098.html

America's largest city is New York City, by far. See how the country's other big cities compare, ranked by order of population.

GDP USA: $15.09 Trillion ($15,090 Billion)

Google

http://www.google.com/#hl=en&safe=active&sclient=psy-ab&q=GDP+US&oq=GDP+US&gs_l=hp.3..0l4.718.2211.0.2528.6.6.0.0.0.0.258.804.2j3j1.6.0...0.0...1c.1.7.psy-ab.2zLEvYCqE2E&pbx=1&bav=on.2,or.r_qf.&bvm=bv.44158598,d.b2I&fp=ac59688375ef158a&biw=1280&bih=941

Search the world's information, including webpages, images, videos and more. Google has many special features to help you find exactly what you're looking for.

GDP Cyprus: $24.69 Billion

Google

http://www.google.com/#hl=en&safe=active&sclient=psy-ab&q=gdp+cyprus&oq=GDP+Cypr&gs_l=hp.3.0.0l2j0i22i30l2.9875.13581.1.14423.8.6.1.1.1.1.166.574.5j1.6.0...0.0...1c.1.7.psy-ab.rVET6V0U_tU&pbx=1&bav=on.2,or.r_qf.&bvm=bv.44158598,d.b2I&fp=ac59688375ef158a&biw=1280&bih=941

Search the world's information, including webpages, images, videos and more. Google has many special features to help you find exactly what you're looking for.

15090/24.69 = 611.18x larger

Though if you want to continue the crazed belief that what affects a small island off the coast of Greece will somehow change how the largest superpower and economy in the world will treat you, knock yourself out.

I just wonder what you'll do if they ever threaten to have an excise tax on converting precious metals to currency. Or enact a special tax on real estate.

**bUU** · 03-22-2013, 08:20 AM

Originally posted by jpg7n16 View Post

I just wonder what you'll do if they ever threaten to have an excise tax on converting precious metals to currency.

Something related to note: To the extent one chooses to exit the economy (in whatever way and for whatever reason) do keep in mind that the path back into the economy may or may not be open, and even if it is, there might be a cost.

**humandraydel** · 03-22-2013, 06:02 PM

Originally posted by 97guns View Post

you guys really need to open your eyes and see whats going on before its too late, for those that dont trust rogue journalism

here is one straight from the front page of yahoo, right where you feel comfortable, enjoy.

http://finance.yahoo.com/blogs/daily...141227303.html

I've probably read more on this subject than you have, so I'm well aware of the situation. And we WERE faced with a somewhat similar situation in 2008. However, due to certain circumstances such as controlling our own currency (and therefore destiny), we get to make decisions for ourselves. As such, our government decided to backstop many of the large banks and even went further to support money market funds which are NOT FDIC protected. All of this was done to restore CONFIDENCE in the "system." By maintaining a level of confidence, the system was allowed to work through the issues with a lot of pain, but without total collapse.

Obviously Cyprus does not have the options we have and the primary concern is the destruction of the confidence which leads to further declines (runs on the banks, etc). To be clear, the consequences for Cyprus are VERY severe, but to insinuate that the same sort of catastrophe could happen in the U.S. is naive at best, and paranoid fear mongering at worst.

**Wino** · 03-22-2013, 07:30 PM

To be clear, the consequences for Cyprus are VERY severe, but to insinuate that the same sort of catastrophe could happen in the U.S. is naive at best, and paranoid fear mongering at worst.

The "tax," which is not covered by FDIC insurance were it to happen in the US, is the problem. By hitting bank deposits - even officially suggesting this is possible - is a blow to all banking institutions associated with the Euro.

The problem is not scale, but precedent. The EU is a large economy, roughly the size of the US economy. Now, imagine you have $1M in the bank and live in Spain, Greece, Italy, Portugal, Ireland, or whoever is next on the "EU needs to bail them out" list. You see what is happening in Cyprus. Do you leave your money in the bank knowing that is is possible that $100K could be "taxed" out of existence overnight?

The officially-sanctioned raid on bank accounts was and is stupid. The last thing the world needs now is a major currency to force a loss of confidence in their banking system, yet this is exactly what they have done. Are you suggesting the Cyprus depositor tax has had no effect on the consumer confidence in the EU banking system in general? If people in Spain or Italy are now questioning keeping funds in the bank - not acting on the idea, but just questioning whether they should pull out the funds - then I can state categorically that confidence in the safety of the EU banks has been detrimentally affected.

Just a suggestion: How about we dispense with the name calling and just debate the facts, and our conclusions from the facts, or our opinions formed from viewing the facts? Or instead, I can start calling you an ostrich and say you're irrationally stubborn and have no ability to see the forest for the trees due to your myopia. Wow! There's a lot of pointless insults we can throw at each other, aren't there? I don't see how most of this paragraph contributes to the discussion of the topic at hand any more than your last sentence in the quote contributes, but I'm more than capable of hurling rebuttal ad hominem attacks in response to ad hominem attacks coming from others.

why isnt anyone talking about this?

Look in the news article forum below. I brought up this topic on March 18. I stopped talking about it when others started throwing ad hominem attacks that didn't contribute to the discussion, though it was a different poster who was rudely dismissing valid points in that thread.

**thekid** · 03-22-2013, 08:10 PM

Bank deposits carry bank credit risk for amounts above state deposit insurance (and state deposit insurance carry state credit risk).

Cypriot banks are insolvent (they basically took russian mob money and bought greek bonds with it, on which they suffered unsustainable losses). Lenders to cypriot banks should lose capital. A lender of last resort (ecb) has accepted to make a loan, subject to existing creditors taking a writeoff on their debt. Perfectly normal and something you see everyday, if you replace the term "deposit" to "loan".

There really is nothing remarkable here, other than "optics". And even that would not have been a problem were it not for the cypriot government that refused initial ecb demand that only accounts above state insured 100k take a cut (cypriot pm insisted all accounts be hit so as to lower hit on bigger accounts held, by in large, by Russians). Cyprus is now returning to a higher shave for above 100k accounts while under 100k accounts remain fully protected and a deal will likely be reached around this parameter.

There is no reason whatsoever that lenders to a bank should not lose capital on uninsured amounts should the bank go under (and even on insured amounts should the state be insolvent).

There really is little interest to this story other than (i) cypriot government shamefully trying to protect russian money launderers (cyprus' oversized financial sector is largely based on this) and (ii) people all over the world not understanding the situation and freaking out.

cyprus taxing bank accounts 10%