Why today’s Cyprus bailout could be the start of the next financial crisis

[Freeper]

In other words the DUmmies are happy they can blame this instead of 0bama.

dkf (31,528 posts)

Why today’s Cyprus bailout could be the start of the next financial crisis


 
It is a bad day to have your money deposited in a bank in the Mediterranean island nation of Cyprus. And it may just mean some bad days ahead for the rest of us.

Early Saturday, the nation reached an agreement with international lenders for bailout help. Part of the agreement: Bank depositors with more than 100,000 euros ($131,000) in their accounts will take a 9.9 percent haircut. Even those with less in savings will see their accounts reduced by 6.75 percent. That's right: Anyone with money in a Cypriot bank will have significantly less money when the banks open for business Tuesday than they did on Friday. Cypriots have reacted with this perfectly rational reaction: lining up at ATM machines to try to get as much money out in the form of cash before the money they have in their accounts is reduced.

What makes this important for people who couldn't locate Cyprus on a map is this: It is one of the 17 nations using the euro currency, the fact that it's a lot closer to Beirut than to Paris notwithstanding. European officials have spent the past six years moving heaven and earth to ensure that no depositors with the continent's banks suffer a loss despite the financial strains the banks have been under.

Most dramatically, the Irish government in the fall of 2008 backstopped its banks, putting its public finances through a wringer. Even as the Greek economy has fallen into depression and Spanish bank losses on real estate have reached dangerous levels, the European Central Bank and the continent's government have ensured that bank deposits were safe. They have feared that if depositors in any country were forced to take losses, it would spark a destructive cascade of withdrawals across Europe.

http://m.washingtonpost.com/blogs/wonkblog/wp/2013/03/16/why-todays-cyprus-bailout-could-be-the-start-of-the-next-financial-crisis/

http://www.democraticunderground.com/10022521073

The DUmmies should be fine with this after all it's just a tax.
And higher taxes don't hurt the economy so shouldn't this create jobs and bring prosperity to all of Cyprus?

Scuba (25,158 posts)
1. Actually, Ronald Reagan started the next financial crisis, just like the last one.

Yep let's blame the president from 30 years ago. Still not 0bama's fault.

Victor_c3 (634 posts)
2. You don't have to worry about your savings if you don't have any savings to begin with

I have a hefty $420 in my savings account

Your hit would only be about $30, I think I read that it is 6.75% for amounts under $100,000, 10% above that. I bet you would squeal like a stuck pig if the feds took $30 from you over the weekend.

[I_B_Perky]

Victor_c3 (634 posts)
2. You don't have to worry about your savings if you don't have any savings to begin with

I have a hefty $420 in my savings account

And you should give me half of that dummie. It's only fair since I got zero in my savings account.** Fork it over dummie!!!!


**I got my money in a checking account. But that ain't a savings account so it's all good! 

[Wineslob]

Victor_c3 (634 posts)
2. You don't have to worry about your savings if you don't have any savings to begin with

I have a hefty $420 in my savings account

I see what you did there......

[JohnnyReb]

I see what you did there......

Now I get it.... .....

[BadCat]

Meanwhile, here in the USofA, a mulatto "president", and a bunch of commie congresscritters are saying "Now there's a great idea".

[98ZJUSMC]

Scuba (25,158 posts)
1. Actually, Ronald Reagan started the next financial crisis, just like the last one.

Two possibilities.  Pointed snark or blithering (D)Ummie idiot.

Yeah, me too.  The latter.

[Duke Nukum]

Victor_c3 (634 posts)
2. You don't have to worry about your savings if you don't have any savings to begin with

I have a hefty $420 in my savings account

Dog whistle to his dope dealer?

[jukin]

I think states like Illinois, NY, and kalifornia are looking at this with great hunger. Look at how NY got that unconstitutional gun ban law through in the dead of night.

My friends this is what big government socialist/fascists do when they run out of easy OPM. I'm happy I went long Pb for the last decade.

[Dori]

I think states like Illinois, NY, and kalifornia are looking at this with great hunger. Look at how NY got that unconstitutional gun ban law through in the dead of night.

My friends this is what big government socialist/fascists do when they run out of easy OPM. I'm happy I went long Pb for the last decade.

Now New Zealand is thinking about doing this.

http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm

[JohnnyReb]

Now New Zealand is thinking about doing this.

http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm

The $100 a pound steak eater and the lobster gobbler will be discussing this in the Lincoln bed tonight I bet.

[GOBUCKS]

Now New Zealand is thinking about doing this.

http://www.scoop.co.nz/stories/PA1303/S00306/national-planning-cyprus-style-solution-for-new-zealand.htm

That's a Green Party press release.

I'll listen when it comes from a civilized source.

[JohnnyReb]

Well, radio news says Cyprus didn't go for it.....back to the drawing board.