Cyprus-Forum.com

[Oceanside50]

http://www.washingtonpost.com/blogs/won ... al-crisis/


"...The European Central Bank will now be on high alert, monitoring activity in Greece, Spain and beyond for evidence that the Cyprus precedent will result in new runs on those nations’ banks. Expect a flood of central bank liquidity into those nations if there is any hint that depositors across Europe seem to be thinking that Cyprus is the new normal and that their seemingly safe bank deposits could be reduced 10 percent without warning.
The best the rest of the world can hope for is that Cyprus’s case is sufficiently unique that it won’t spark panic in Athens and Madrid (or in Lisbon, Dublin and Rome).
For the past six months, the global financial markets have become increasingly complacent, convinced that the euro-zone crisis is, for practical purposes, over. Cyprus is the test of whether that is correct, or whether the complacency was instead misplaced..."

[supporttheunderdog]

Some in Spain are already spooked,....

there is major loss of Trust in the EU financial system....

[Oceanside50]

They figure cyprus' economy is so insignificant people will forget about the "act" after a few weeks..

[cyprusgrump]

They figure cyprus' economy is so insignificant people will forget about the "act" after a few weeks..

I won't!

Nor will people that read blogs like this one or this one or this one....

The damage from this will spread far and wide IMHO...

[supporttheunderdog]

I have a work collegue out in Singapore: he tells us this is big news on all of the TV news channels.

[Oceanside50]

..The Eu stoops to the point of stealing money from peoples accounts!!!......Whats the point of this?.....And its such an insignificant amount if you think about it, its the act thats more important to them.

[cyprusgrump]

Stock Exchange suspended

[GreekIslandGirl]

It's a battle between the EU and Russia for Cypriot assets.

Euro holding strong.

(USA already has a finger in the pie ... )

[cyprusgrump]

According to Reuters, the Cypriot government has now submitted a new draft bill to parliament that would scrap the controversial levy on bank deposits for amounts below €20,000 euros.

However, it does not appear to include higher rates for larger deposits. Which surely means a shortfall?

Here's the details:

The draft, seen by Reuters, sets a zero percent levy on deposits of up to 20,000 euros, a 6.75 percent rate for amounts between 20,000 and 100,000 euros and maintains a 9.9 percent tax on all deposits above that level.

Jeremy Cook, World Bank's chief economist, has quickly crunched the numbers and concluded that a higher rate of 12.5% for those with more than €500,000 in the bank would cover the shortfall:

So, anybody with €19,999.99 in the bank on Friday night pays noting, anybody with a single cent more than that pays 6.75%?

[supporttheunderdog]

the amount is not the issue - it is the principle of the thing where up to now bank bailouts have not involved the retail customers. ie depositors and savers. it has sent jitters through the whole world since no no one's money in an EU bank is now thought safe from some risk of seizure, even if the bank where you have your money is in fact soundly run and does not need a bail-out.