Coming to a bank near you!

So some Banker will walk in and buy Cyprus for $7 billion.
New Zealand peasants paying the bill.

This is just madness.
 
The Cyprus tax grab attempt is just a variation on wealth tax. In some places you pay a tax on the value of what you own. Some US states charge a tax on the value of your vehicle, not just the licence fee.
We have it here with market value assessment. Property tax should relect the service costs the municipality incurs on th property. How does having a marble floor instead of cheap carpet increase the service cost of the municipality?

The scary part about the savings grab concept is that to protect your wealth you have to transfer your savings into another wealth venue. You either invest in the stock market or buy more stuff.
 
What's the big deal with Cyprus? The talking heads blamed the Dow's decline today on this grain of sand.
The population of The City of Ottawa Ontario is greater than the country of Cyprus.
 
Cyprus is the Cayman Islands of the Europe. A tax haven where majority of the depositors are out of the country. In fact their banking system is 8x larger than what its supposed to be for its GDP.

Why is it important? They tried to levy a fee on everyone accounts as part of bailout plan. How would you like if your nest egg savings accounts was levied 6.7%? How about your checking account? They also just decided that they will shut down all the banks. It was supposed to be for two days, which turned into a week, which has now been extended till following Tuesday. Why? Because they know what this means...a Run on the Banks which will clean them out. This also sets precedent for the rest of the EU institutions to do. If they do go through with it, watch Spain, Italy, Greece etc etc citizens to say screw it and pull all their money out of all the banking institutions. Nothing brings a financial crash faster than a Bank Run simply because there is not enough money in the banks for all the people to take back. The entire banking institution relies on trust. Trust that your money will be there for you to take it, Trust that the banks will be there, Trust that you will pay back your loans, trust that the governments will pay back their loans. Without this trust the whole house of cards collapses. EU Troika (International Monetary Fund, the European Union and the European Central Bank) explicitly promised that no such levies would be imposed back in 2008. They broke the trust (The troika is the one that is setting these requests as part of the bailout package). The entire EU is now holding its breath as to what will happen.





Gary said:
What's the big deal with Cyprus? The talking heads blamed the Dow's decline today on this grain of sand.
The population of The City of Ottawa Ontario is greater than the country of Cyprus.
Click to expand...
 
Well it is weird. If a bank gets in trouble, the shareholders get whacked first, then the bondholders and finally the depositors. The govt. typically guarantees depositors up to some maximum (in Canada it's $100K). Since the Euro crisis there's been lots of cases where the bondholders took the hit to protect the shareholders - not supposed to happen. This is the first time tho that somebody is trying to whack the depositors to protect the shareholders - and this is probably illegal.

The very interesting wrinkle here is that much of the depositors are Russian billionaire oligarchs,

edit and if you're rich you take a bigger haircut vs a small depositor end edit

so Russia is very unhappy.
 
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johnp said:
Well it is weird. If a bank gets in trouble, the shareholders get whacked first, then the bondholders and finally the depositors. The govt. typically guarantees depositors up to some maximum (in Canada it's $100K). Since the Euro crisis there's been lots of cases where the bondholders took the hit to protect the shareholders - not supposed to happen. This is the first time tho that somebody is trying to whack the depositors to protect the shareholders - and this is probably illegal.

The very interesting wrinkle here is that much of the depositors are Russian billionaire oligarchs,

edit and if you're rich you take a bigger haircut vs a small depositor end edit

so Russia is very unhappy.
Click to expand...

Clarification: The government does not guarantee bank deposits. They created the Canadian Deposit Insurance Corporation to take care of that risky venture. Since the CDIC is a corporation it can fail without the government having to pick up the loss.

There is no way that the CDIC is able to cover a catastrophic loss. They don't have trillions in cash sitting on a shelf. It is invested and subject to the same risk / reward ratios as are all investments.

The cash grab will happen, one way or another. Publicly traded corporations must grow and they have tapped out all the other sources of income. Grabbing savings forces people to spend, use it or lose it. It will happen again. Income taxes were introduced as a temporary measure to finance World War One. I thought I heard the war ended 95 years ago.

The stuffed mattress seems like a good idea but keep in mind that the great preacher of freedom and rights to the south of us does not allow you to travel with more than $10,000.00 in cash. The police have the right to sieze large sums of cash because you might be dealing drugs or funding terrorists. Coming soon to a country nearer you.
 
Glitch my ***. They are getting ready to do the same here. And then blame in on hackers.

Chase Bank customers temporarily see '0' balance

http://abclocal.go.com/kabc/story?section=news/business&id=9032659


TD Bank says it was hit by a 'targeted' cyber attack, affected online banking

http://www.ottawacitizen.com/techno...ck+affected+online+banking/8133004/story.html


LMAO!!!! CDIC is a government run and funded. Meaning we the tax payers. It even says that on their web page: http://www.cdic.ca/Pages/default.aspx

So is the CHMC in which the government has off loaded most to all of the bad mortgages from the banks.

nobbie48 said:
Clarification: The government does not guarantee bank deposits. They created the Canadian Deposit Insurance Corporation to take care of that risky venture. Since the CDIC is a corporation it can fail without the government having to pick up the loss.
Click to expand...
 
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nobbie48 said:
Clarification: The government does not guarantee bank deposits. They created the Canadian Deposit Insurance Corporation to take care of that risky venture. Since the CDIC is a corporation it can fail without the government having to pick up the loss.

There is no way that the CDIC is able to cover a catastrophic loss. They don't have trillions in cash sitting on a shelf. It is invested and subject to the same risk / reward ratios as are all investments.

........
Click to expand...

CDIC is a federal govt. agency and with same credit rating as the federal govt. The whole point of CDIC is to guarantee deposits in banks (to limits) so there won't be a run on the banks. The federal govt. has a huge tax base to draw on, or can just print money if it has to make good - so it's hard to imagine a default without an apocalypse.

IF the the CDIC fails to pay off you can be sure that would be the least of our problems i.e. there would probably be a soft radiactive glow across the whole country. But that's into tinfoil hat territory and others seem to understand that better than me.
 
Red_Liner740 said:
Cyprus is the Cayman Islands of the Europe. A tax haven where majority of the depositors are out of the country. In fact their banking system is 8x larger than what its supposed to be for its GDP.

Why is it important? They tried to levy a fee on everyone accounts as part of bailout plan. How would you like if your nest egg savings accounts was levied 6.7%? How about your checking account? They also just decided that they will shut down all the banks. It was supposed to be for two days, which turned into a week, which has now been extended till following Tuesday. Why? Because they know what this means...a Run on the Banks which will clean them out. This also sets precedent for the rest of the EU institutions to do. If they do go through with it, watch Spain, Italy, Greece etc etc citizens to say screw it and pull all their money out of all the banking institutions. Nothing brings a financial crash faster than a Bank Run simply because there is not enough money in the banks for all the people to take back. The entire banking institution relies on trust. Trust that your money will be there for you to take it, Trust that the banks will be there, Trust that you will pay back your loans, trust that the governments will pay back their loans. Without this trust the whole house of cards collapses. EU Troika (International Monetary Fund, the European Union and the European Central Bank) explicitly promised that no such levies would be imposed back in 2008. They broke the trust (The troika is the one that is setting these requests as part of the bailout package). The entire EU is now holding its breath as to what will happen.
Click to expand...

What kind of shape do you think all the countries you mentioned would be in had they kept their own currancy?
i.e. prior to the Euro?
Not to worry about Cyprus anyway - bailout is on it's way.

BTW...........I'd be quite happy if I was only taxed 6.7%.
 
^^ Yea? Send me 6.7% of your bank account then....punishing those who were frugal or smart enough to save money to postpone the coming financial collapse is pure BS.

How would they fair? Bad, but it would hurt for a bit then life moves on. Yugoslavia went through this, recovered, kept going.

These bailouts will NOT divert the coming financial collapse. Nothing will.
 
Red_Liner740 said:
^^ Yea? Send me 6.7% of your bank account then.....
Click to expand...

You'll have to get in line............if I cash out, I'd have to pay the mafia (govt) 35% before you get your slice. That's after I paid about 27% income tax on the original money.
 
One of my co-workers just told that she has a friend in Cyprus. The friend said that they have shut down all banks for a week so that can not have people take any more money out of their accounts.



http://ca.finance.yahoo.com/news/banks-shuttered-days-cyprus-businesses-left-high-dry-143333447.html



Red_Liner740 said:
^^ Yea? Send me 6.7% of your bank account then....punishing those who were frugal or smart enough to save money to postpone the coming financial collapse is pure BS.

How would they fair? Bad, but it would hurt for a bit then life moves on. Yugoslavia went through this, recovered, kept going.

These bailouts will NOT divert the coming financial collapse. Nothing will.
Click to expand...
 
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Again. This idea that because possibly some of the money is "dirty" makes it okay to steal from all accounts is absurd to me. I can just see TD levying all accounts because some accounts are possibly being funded through illegal activity.
 
Some of the money? Possibly used to fund illegal activity? It's Cayman islands of Europe .... so some of the money, means most of the money and possibly means for sure. So lets be correct about that. The comparison to TD or any local bank doing it is just silly, unless you claim that most money saved in TD comes from illegal activity.

The better equivalent would be ... "Would you bail out Cayman Islands if they were in similar situation?" ... I sure as hell would not, because it makes zero sense. Not without taxing all the people who voluntarily risked saving their money there in the first place to avoid paying taxes.
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