eu helps itself to savers money

[nick mercedes]

There's a difference between a military that is generally operational and active and one that has numbers but doesn't do much.

Does not being sat on enormous mineral and oil/gas wealth negate the need for all of that?

America might have more planes and tanks than everyone else put together, but what use are they when America is bankrupt, and most Americans are too fat and stupid to realise that China is in charge now?

 

[markjay]

Obama visits Israel, and while he's there the Israeli PM calls up his Turkish counterpart and apologises for the killing of the nine Turkish activists onboard the Navi Marmara three years ago. The Turkish PM immediately agrees to full reconciliation including resuming of full diplomatic relationship and military cooperation. Coincidence? Or is Obama getting his ducks in a row? Counterweighting Russian influence in the med?

 

[Dryce]

Coincidence? Or is Obama getting his ducks in a row? Counterweighting Russian influence in the med?

No. It's about Syria and Iran.

 

[WDB124066]

Yes it is. Now he has two more and possibly three more on the right side...

 

[WesLangdon]

Yes it is. Now he has two more and possibly three more on the right side...

Syria is a nightmare and the Americans should tred very warily as it still has the potential for a much wider war that could envolope Israel too. Obamas strategy lacks clarity.

 

[nick mercedes]

"Deposits above €100,000, which under EU law are not guaranteed, will be frozen and used to resolve debts, and Laiki will effectively be shuttered, with thousands of job losses"

Black day for the eurozone, lots of unhappy Russians...

 

[WDB124066]

Smart people in Cyprus never had more that eu20 000 in one account.

 

[R120]

I have no sympathy for Cyprus, their government bet the house on their banking sector, and lost.

I do have sympathy for ordinary Cypriots who are going to get burnt.

The reason they are in this situation, is they created a banking and legal system that made it very attractive for foreigners to hold offshore accounts, resulting in huge influx of money. They then relaxed their laws so that banks could invest up to 90% of their holdings, which they then did, mostly in Greece, where obviously they lost everything.

I cant remember the exact figure, but the debt held by the banks is so far in excess of the money held by the government, and so far in excess of ever being reclaimed by normal taxation, that this is the only option.

Is a unique situation and different to what's happend elsewhere in the EU because the amount of debt is so far out of kilter with the population level, which makes it impossible to look at any other way of solving the situation - it was also the Cypriots who came up with the idea and went to the EU, who just set the terms they would do such a deal under.

 

[Piff]

Smart people in Cyprus never had more that eu20 000 in one account.

Does the forum think that the raiding of savers accounts may happen in other struggling EU states?

 

[RTaylor]

Does the forum think that the raiding of savers accounts may happen in other struggling EU states?

Unfortunately yes, not sure about UK as we are already being screwed with poor/non existent interest rates effectively creaming off a % each year anyway. I would be very worried if I lived in Spain, Greece or Italy especially when banks reopen and people start moving their Cypriot Euro elsewhere. I also think there must be a few worried politicians right now as I doubt the Russian Mafia take to kindly to being robbed

 

[Piff]

Unfortunately yes, not sure about UK as we are already being screwed with poor/non existent interest rates effectively creaming off a % each year anyway. I would be very worried if I lived in Spain, Greece or Italy especially when banks reopen and people start moving their Cypriot Euro elsewhere. I also think there must be a few worried politicians right now as I doubt the Russian Mafia take to kindly to being robbed

Is Ireland immune?

 

[RTaylor]

Is Ireland immune?

I don't know, I am no expert but frankly I am concerned about my pension pot in UK getting raided in future now, doesn't give you much confidence in either banks or governments frankly. I wouldn't trust any of them and I am on baited breath to see how far this tidal wave goes once Cypriot banks open again

 

[Charles Morgan]

Does the forum think that the raiding of savers accounts may happen in other struggling EU states?

Yes. Even if it is a very low probability, if I had money in any southern European bank I would reduce the balance to that which is covered by deposit guarantee as a first step if the money has to be there, otherwise, I'd remove everything back to a creditworthy country and make transfers as necessary.

 

[Piff]

Yes. Even if it is a very low probability, if I had money in any southern European bank I would reduce the balance to that which is covered by deposit guarantee as a first step if the money has to be there, otherwise, I'd remove everything back to a creditworthy country and make transfers as necessary.

This is my thinking, I have a lump with Post Office Bank, which is Bank of Ireland.

Now in the process of opening alternative accounts to transfer some of the funds.

 

[WDB124066]

Cyprus: Big savers could lose 60 percent - World - NZ Herald News

 

[markjay]

....otherwise, I'd remove everything back to a creditworthy country and make transfers as necessary.

...while you can

 

[RTaylor]

http://www.bankofengland.co.uk/publications/Documents/news/2012/nr156.pdf

Just incase your in any doubt it could happen here, worthless shares for your hard earned cash !!

 

[Dryce]

I don't know, I am no expert but frankly I am concerned about my pension pot in UK getting raided in future now, doesn't give you much confidence in either banks or governments frankly.

Pension raids in the UK started in 1997. Much damage was done prior to 2007.

The inablility of all the main politcal parties in the UK to get to grips with the deficit means that one way or another future pensions will in effect be raided by tax and inflation.

Of course this assumes that you actually have a pension worth worrying about. Many either don't have a pension or don't have one of sufficient worth.

 

[markjay]

Regarding raiding Pensions and trimming bank accounts to pay for financial shortfall...


Some years ago when working in West Africa I asked a local politician why they can't bring under control the roaring illegal logging trade (major issue in jungle parts of Africa - the logs are huge and fetch a good price).

The answer surprised me - he said he understood the 'Earth's Green Lungs' issue well, but the quotas on logging imposed by Western countries were unfair - for centuries North Europe and North America were covered in natural forests, over the years we Westerners chopped-off all our trees for cash, and now we are telling poor African countries that they can't sell their own wood to feed their people because there are not enough trees left on the planet?


It is always a dilemma, isn't it - in times of hardship you can only take away from the Ants, because they are the ones that have rainy-day savings - the Grasshoppers have already spent it all. Not fair, but what are our options?

 

[markjay]

I should add that the question of whether taking away some of the wealth earned by Fat Cats it is fair or not is purely academic - Fat Cats are well known for their resilience to tax initiatives, and their ability to prevent others from putting their hands on their (not) hard-earned cash is second to none.

Yep, small savers who keep their cash in bank account and pension funds are the only practical source of additional revenue for governments...

...unless the government is able to reduce its outgoing payouts, but that's becoming political so let's not go there.