Cyprus-Forum.com

[cyprusgrump]

Lets keep this thread about the specific agreement... if you want to discuss other things with GIG then maybe you should PM her because the rest of us are not considering to return to the villages to grow watermelons

Who appointed you the moderator of the forum...?

It is completely on-topic... GIG stated that the bank could take ALL the money as Cypriots don't need it...

I have asked a very practical question as to what she would do and how she would manage without the money...?

She has refused to answer...

I'm completely happy to discuss the bail-out and its implications but you are not in a position to censor what can be discussed, what questions can be asked and what has to be spoken about via PM...

Feel free to report any or all of my posts to the Admin and they can decide what can or cannot be discussed on their forum...

OK?

[cyprusgrump]

I agree with Sotos, we Greek Cypriots have seen a lot worse then this. If one compares this to the 1974 Turkish invasion, where 200,000 Greek Cypriots were made into refugees and the whole country's economy virtually destroyed, this banking thing is nothing.
And if we have to pick olives from a tree and relearn how to prepare them, so what? Amazingly it may even be a fun thing to do.... In fact in the not so distant future the bank shares most likely will turn into a profit as with the AIG bailout.




http://www.bloomberg.com/news/2012-12-1 ... -sale.html

"....The Treasury Department is selling 234.2 million shares at $32.50 each in the sixth offering since the 2008 rescue. The proceeds boost the U.S. profit on the rescue that began in 2008 to $22.7 billion, according to a statement today from the Treasury, which injected capital through the Troubled Asset Relief Program..."

Yes we do need some perspective. After the initial shock, let's recall that people’s savings are not being wiped out but effectively taxed (albeit in exchange for shares) in order to prevent the banking collapse that Germany was threatening. It's unethical, in my view, especially on smaller savers but the alternatives on offer seem to have been much worse.

This is a gamble that it won't lead to a bank run in Cyprus and the rest of the EU. After all, what good it would do people to withdraw their money now, after the levy? Residual deposits are very very safe now. My guess is that the EU are gambling this will all blow over after the initial fuss.

I'm not sure this is a wise move by the EU though. People can say what they want, but from now on every rumor of a bailout for any eurozone country has the potential to trigger a bank run. At least Cyprus has got this out of the way first...

The overwhelming view of the people I have spoken to today (Cypriots and expats) is that they will remove their funds from Cyprus as a result of this....

[Maximus]

I agree with Sotos, we Greek Cypriots have seen a lot worse then this. If one compares this to the 1974 Turkish invasion, where 200,000 Greek Cypriots were made into refugees and the whole country's economy virtually destroyed, this banking thing is nothing.
And if we have to pick olives from a tree and relearn how to prepare them, so what? Amazingly it may even be a fun thing to do.... In fact in the not so distant future the bank shares most likely will turn into a profit as with the AIG bailout.




http://www.bloomberg.com/news/2012-12-1 ... -sale.html

"....The Treasury Department is selling 234.2 million shares at $32.50 each in the sixth offering since the 2008 rescue. The proceeds boost the U.S. profit on the rescue that began in 2008 to $22.7 billion, according to a statement today from the Treasury, which injected capital through the Troubled Asset Relief Program..."

Yes we do need some perspective. After the initial shock, let's recall that people’s savings are not being wiped out but effectively taxed (albeit in exchange for shares) in order to prevent the banking collapse that Germany was threatening. It's unethical, in my view, especially on smaller savers but the alternatives on offer seem to have been much worse.

This is a gamble that it won't lead to a bank run in Cyprus and the rest of the EU. After all, what good it would do people to withdraw their money now, after the levy? Residual deposits are very very safe now. My guess is that the EU are gambling this will all blow over after the initial fuss.

I'm not sure this is a wise move by the EU though. People can say what they want, but from now on every rumor of a bailout for any eurozone country has the potential to trigger a bank run. At least Cyprus has got this out of the way first...

The overwhelming view of the people I have spoken to today (Cypriots and expats) is that they will remove their funds from Cyprus as a result of this....

they would still contribute and have the equity in return and run the risk of it happening again in another bank, somewhere else in the EU.

[cyprusgrump]

I agree with Sotos, we Greek Cypriots have seen a lot worse then this. If one compares this to the 1974 Turkish invasion, where 200,000 Greek Cypriots were made into refugees and the whole country's economy virtually destroyed, this banking thing is nothing.
And if we have to pick olives from a tree and relearn how to prepare them, so what? Amazingly it may even be a fun thing to do.... In fact in the not so distant future the bank shares most likely will turn into a profit as with the AIG bailout.




http://www.bloomberg.com/news/2012-12-1 ... -sale.html

"....The Treasury Department is selling 234.2 million shares at $32.50 each in the sixth offering since the 2008 rescue. The proceeds boost the U.S. profit on the rescue that began in 2008 to $22.7 billion, according to a statement today from the Treasury, which injected capital through the Troubled Asset Relief Program..."

Yes we do need some perspective. After the initial shock, let's recall that people’s savings are not being wiped out but effectively taxed (albeit in exchange for shares) in order to prevent the banking collapse that Germany was threatening. It's unethical, in my view, especially on smaller savers but the alternatives on offer seem to have been much worse.

This is a gamble that it won't lead to a bank run in Cyprus and the rest of the EU. After all, what good it would do people to withdraw their money now, after the levy? Residual deposits are very very safe now. My guess is that the EU are gambling this will all blow over after the initial fuss.

I'm not sure this is a wise move by the EU though. People can say what they want, but from now on every rumor of a bailout for any eurozone country has the potential to trigger a bank run. At least Cyprus has got this out of the way first...

The overwhelming view of the people I have spoken to today (Cypriots and expats) is that they will remove their funds from Cyprus as a result of this....

they would still contribute and have the equity in return and run the risk of it happening again in another bank, somewhere else in the EU.

Assuming they kept their funds within the EU...

I know absolutely for sure of one person that will move their funds to Australia next week...

[supporttheunderdog]

Just one question - what actually is the legality of all of this?

[cyprusgrump]

Just one question - what actually is the legality of all of this?

I suspect 'not at all' is the answer but the law will quickly be changed to allow it...

[Demonax]

they would still contribute and have the equity in return and run the risk of it happening again in another bank, somewhere else in the EU.

Anyone with deposits in a euro area bank could be at risk from a similar action elsewhere. Strangely enough, residual deposits are very safe in Cyprus now.

If anybody was going to remove money from Cyprus, the last few months was the time to do it.

Savers in Spain, Slovenia and Italy must be getting worried though if their govt's have to ask for an EU bail-out.

[Demonax]

Just one question - what actually is the legality of all of this?

I'd be surprised if somebody doesn't challenge this in the ECJ.

[cyprusgrump]

they would still contribute and have the equity in return and run the risk of it happening again in another bank, somewhere else in the EU.

Anyone with deposits in a euro area bank could be at risk from a similar action elsewhere. Strangely enough, residual deposits are very safe in Cyprus now.

But they aren't...

The precedent has been set... If they can steal our money once they will do it again... They will claim the EU forced them to do this and therefore the EU can force them again...

There is NO guarantee that this will be the last time...

Quite frankly, anybody that keeps cash in a Cyprus bank after today is a fool....

[GreekIslandGirl]

Just one question - what actually is the legality of all of this?

I'd be surprised if somebody doesn't challenge this in the ECJ.

My understanding is that because it's a levy, the money is still effectively in your account - you just can't take it (that portion) out as 'money' but you can sell your levy/share/debt which is held by the bank to somebody else. So it's legal.