This is what happens when you run out of other people's money.

[blaxshep]

Cyprus: banks open but no free access to money | euronews, world news

 

[Spartacus FPV]

At least openly taking people's money from their accounts is more honest than those who debase a currency stealing its very value.

 

[Diogenes]

True. The small depositors are presumably protected, except for when their jobs go away because the government has hijacked their employer's payroll money. I have no sympathy for the mobsters and money launderers who will take the biggest haircut (unless they can bribe their way out of it).

It is scary to think that this European socialism is the path Obama wants for the US.

 

[Paschendale]

It is scary to think that this European socialism is the path Obama wants for the US.

Wouldn't want to let facts get in the way of your talking point, huh?

The Cyprus bank crash was triggered by the recession here, which was caused by private banks selling defective products to consumers for outrageous profit. They're facing high unemployment along with high profits, just like there. Plus with a large number of offshore banks that have removed currency from the Cyprus economy, it's no wonder they're suffering.

There's nothing communal or social about private interests looting an economy for their own benefit.

 

[Wiseone]

Wouldn't want to let facts get in the way of your talking point, huh?

The Cyprus bank crash was triggered by the recession here, which was caused by private banks selling defective products to consumers for outrageous profit. They're facing high unemployment along with high profits, just like there. Plus with a large number of offshore banks that have removed currency from the Cyprus economy, it's no wonder they're suffering.

There's nothing communal or social about private interests looting an economy for their own benefit.

Still, its never a good idea to go raiding people's private bank accounts.

 

[washunut]

True. The small depositors are presumably protected, except for when their jobs go away because the government has hijacked their employer's payroll money. I have no sympathy for the mobsters and money launderers who will take the biggest haircut (unless they can bribe their way out of it).

It is scary to think that this European socialism is the path Obama wants for the US.

Read an article recently about the approximately 5,000 people of Cyprus, well off but not wealthy, not mobsters or money launderers who have been wiped out. People who had worked hard, saved and were using the interest from the banks to help sustain them in retirement.

The retired in the U.S. are suffering a similar fate. Their money has not been confiscated. However they are able to earn only a small fraction of what they reasonably expected to earn to supplement their social security. These people either have to put their money in riskier assets than they are comfortable with to try and earn a better return or lower their expected living standard. So unless you are a government worker with a fat pension you are screwed. Surprised so few care about the plight of the elderly on this site.

 

[Dittohead not!]

Wouldn't want to let facts get in the way of your talking point, huh?

The Cyprus bank crash was triggered by the recession here, which was caused by private banks selling defective products to consumers for outrageous profit. They're facing high unemployment along with high profits, just like there. Plus with a large number of offshore banks that have removed currency from the Cyprus economy, it's no wonder they're suffering.

There's nothing communal or social about private interests looting an economy for their own benefit.

private banks selling defective products to consumers for outrageous profit.. somehow that sounds vaguely familiar... something to do with sub prime mortgages or something. Must be socialism. Sure, that's it, must be. Everything bad is due to socialism, isn't it? Oh, wait... private banks. Maybe not.

 

[RabidAlpaca]

At least openly taking people's money from their accounts is more honest than those who debase a currency stealing its very value.

I'd much rather have my government come out and say it to my face "We're ****ing you, and there's nothing you can do about it" like in Cyprus, than to have my government try to pretend like they're helping me, while trying to jam something up my ass. "No really, by inflating away 2-3% of your money a year; we're doing you a great service. Think of all the jobs we're creating." Meanwhile the US dollar has lost 30% of it's purchasing power over the last decade.

 

[blaxshep]

There's nothing communal or social about private interests looting an economy for their own benefit.

You just described Obamacare.

 

[Paschendale]

You just described Obamacare.

I certainly described private insurance companies. That Obama care attempts to control their excesses is admirable, but it didn't do enough. UHC would have been vastly preferred.

 

[Gonzo Rodeo]

I certainly described private insurance companies. That Obama care attempts to control their excesses is admirable, but it didn't do enough. UHC would have been vastly preferred.

It's on it's way. The ACA was constructed to cripple the current system so a UHC system will be the only available alternative.

 

[blaxshep]

I certainly described private insurance companies. That Obama care attempts to control their excesses is admirable, but it didn't do enough. UHC would have been vastly preferred.

Obamacare was written by and for private insurance corporations there is no control on excess what-so-ever, get a clue.

 

[head of joaquin]

Cyprus: banks open but no free access to money | euronews, world news

It's what happens when you have no financial regulations, which is what conservatives advocate and got under Bush, leading to our Cyprus moment.

Can't you even come up with a plausible talking point at least?

 

[Diogenes]

There's nothing communal or social about private interests looting an economy for their own benefit.

Are you saying it's okay if the government does it? Which brings us back to Obama...

 

[Paschendale]

Are you saying it's okay if the government does it? Which brings us back to Obama...

I'm not sure I see the equivalency. When private entities do this, they increase their own personal wealth. When the government does it, it swells its coffers, which it then spends. Government can only obtain money on behalf of something else. If that something else is the personal wealth of government officials, then it is absolutely corruption and needs to stop. And be heavily prosecuted. If it turns around and hands that money to companies that fund those officials' campaigns, that is also corruption. But if the money is used to build a dam that benefits a lot of people, then there's no corruption. Barring other interests in land value or something like that.

Government by itself doesn't have an interest to benefit, other than perhaps expanding its own power. The individual people in it certainly do, and need to be constrained. It is not okay when politicians loot the economy for their own benefit. It is not okay with private interests loot the economy for their own benefit. It's not okay when anyone does that. But government doesn't keep any money. It takes it in and then puts it back out. If it does so for the benefit of all, then it's okay. If its individual members sell their allegiance and put that money into the hands of a few in exchange for compensation (or really for any reason), then it's not okay.

 

[CanadaJohn]

I can imagine a lot of situations where people from other countries would have transferred large sums of money to a Cypriot bank without it being money laundering or tax evasion in their home country. Perhaps they were buying a property on the island, maybe buying a business, etc. Perhaps they were moving to Cyprus to retire, moving their retirement funds to the island for easy access. In such situations, what happens to ongoing commerce in Cyprus will be devastating and I can't see how such people will be made whole anytime in the future.

It's a disgrace and I'm ever thankful I live in a truly democratic and free country where such would never happen.

 

[JRSaindo]

Wouldn't want to let facts get in the way of your talking point, huh?

The Cyprus bank crash was triggered by the recession here, which was caused by private banks selling defective products to consumers for outrageous profit. They're facing high unemployment along with high profits, just like there. Plus with a large number of offshore banks that have removed currency from the Cyprus economy, it's no wonder they're suffering.

There's nothing communal or social about private interests looting an economy for their own benefit.

I wouldn't say the recession in the US caused any of it though. Cyprus was sold down the river by its own leaders and banks. With lots of foreign money coming in(mainly Russian) Dimitris Spanodimos(chief risk officer for Laiki bank) decided to play the risk game like everyone else. They invested in Greek bonds and a huge number or mortgage loans. We saw how the Greek mess unfolded.

Spanadimos had swallowed the red pill and decided his banks' gorging on extremely risky investments was tolerable - until of course the EU pulled the plug with the haircuts from the Greek bailout. These losses, and the need for new capital, is why Cyprus needed a bailout - so who is to blame...

So a combination of zero-risk-weighting for Greek government bonds (and their hefty yield), huge deposit inflows, terrible regulatory oversight, and a risk-manager devoured by the mass delusion that Europe (and more specifically Greece) was all going to be ok is why the Cypriot banks collapsed. It is also why the Cypriot people now stand in the street looking for handouts.

The trickle down effect from this is not looking good for Cypriots. Employers can't access their money to pay for goods or payroll. Politicians and fraudsters win yet again.

All the hefty Russian depositors got lots of money out of the two main Cyprus banks while they were supposed to be in a capital freeze condition. It pays to be rich yet again.

 

[Gimmesometruth]

Cyprus: banks open but no free access to money | euronews, world news

You just described Obamacare.

Once again, the OP has decided to derail his own thread, showing he understands neither his original topic or his derail.

What a waste of bandwidth.

 

[Gimmesometruth]

I wouldn't say the recession in the US caused any of it though.

Following the United States' subprime mortgage crisis in 2007-2008, which led to a domino effect of negative consequences in the global economy, the Cypriot economy contracted by 1.67% in 2009,[8] largely due to a sharp fall in its tourist and shipping sectors.[9] Following the contraction, Cyprus experienced continuous increasing unemployment,[10] and thus entered into a recession. From 2010 to 2012 the economic growth of the country has been weak, meaning that the Cypriot economy has yet to recover to its pre-2009 condition.

Increasing unemployment contributed to an increasing state debt as expenditure on unemployment benefits kept increasing. Following the decision of the European Union for a haircut upwards of 50% on Greek bonds in 2011[11][12], in which Cypriot banks had invested heavily, the Cypriot financial system was unable to absorb the cost. The disproportionate size of the financial sector in relation to the rest of the Cypriot economy meant that a possible collapse of the Cypriot banks would have catastrophic results for the economy. The Cypriot state, unable to raise liquidity from the markets to support its financial sector, requested a bailout from the European Union.

2012

 

[Gimmesometruth]

I can imagine a lot of situations where people from other countries would have transferred large sums of money to a Cypriot bank without it being money laundering or tax evasion in their home country. Perhaps they were buying a property on the island, maybe buying a business, etc. Perhaps they were moving to Cyprus to retire, moving their retirement funds to the island for easy access. In such situations, what happens to ongoing commerce in Cyprus will be devastating and I can't see how such people will be made whole anytime in the future.

It's a disgrace and I'm ever thankful I live in a truly democratic and free country where such would never happen.

A leaked report from the German foreign intelligence service, quoted by Der Spiegel, suggested that the main beneficiaries from a eurozone bailout of Cyprus would be Russian oligarchs, businessmen and mafiosi.

And that is believed to be one of the main reasons why savers with money in Cyprus are being forced to contribute to the bank bailout - an unprecedented event.

The close financial relationship between the two countries is said to date back to the early 1990s and the breakup of the Soviet Union when newly-rich oligarchs were looking for places to put their cash.

"It is safe to assume that these are richer Russians that have parked their money there, not with the purpose of getting higher returns in Cyprus, but to probably avoid close government attention," said Ivan Tchakarov, chief economist at Renaissance Capital.

Edward Savulyak director of the Moscow office at Tax Consulting UK told BBC Russian: "There were many Russians in Cyprus because they weren't asked many questions about the origins of the money.

"Other countries are more careful," he said.

BBC News - Russian money in Cyprus: Why is there so much?

 

[Fenton]

Wouldn't want to let facts get in the way of your talking point, huh?


The Cyprus bank crash was triggered by the recession here, which was caused by private banks selling defective products to consumers for outrageous profit. They're facing high unemployment along with high profits, just like there. Plus with a large number of offshore banks that have removed currency from the Cyprus economy, it's no wonder they're suffering.

There's nothing communal or social about private interests looting an economy for their own benefit.

Actually the Cypress banks held large quantites of worthless Greek bonds as that Country built up their public sector and weighted what little private sector they had AND borrowed massive amounts of money to pay for it.

Sure the European banks got caught holding tons of toxic MBS but the origins of many of those MBSs was the GSEs Fannie and Freddie who were under a HUD mandated quota to buy up low quality mortgages.

They bought substandard loans, bundled with good and then sold them to the investment banks as AAA securities.

 

[Chatter]

Cyprus: banks open but no free access to money | euronews, world news

Ironic that you use one of Mrs Thatchers Quotes 'The Trouble with Socialists is that they run out of other peoples money' when describing the situation in Cyprus which was caused by the current economic depression, the roots of which can be firmly found in the global capitalist financial markets.

 

[Gimmesometruth]

Actually the Cypress banks held large quantites of worthless Greek bonds as that Country built up their public sector and weighted what little private sector they had AND borrowed massive amounts of money to pay for it.

Sure the European banks got caught holding tons of toxic MBS but the origins of many of those MBSs was the GSEs Fannie and Freddie who were under a HUD mandated quota to buy up low quality mortgages.

They bought substandard loans, bundled with good and then sold them to the investment banks as AAA securities.

FFS...

You are still whipping that dead horse (CRA myth)......and melding it into loans to the Greek govt.....by German banks?

S....T...R...E...T....C.....H.

 

[DA60]

Wouldn't want to let facts get in the way of your talking point, huh?

The Cyprus bank crash was triggered by the recession here, which was caused by private banks selling defective products to consumers for outrageous profit. They're facing high unemployment along with high profits, just like there. Plus with a large number of offshore banks that have removed currency from the Cyprus economy, it's no wonder they're suffering.

There's nothing communal or social about private interests looting an economy for their own benefit.

That's not why the banks went broke..

'The banks in Cyprus had certainly got too big for their boots. They had grown fat on the deposits of Russians, many of whom were using the island republic as “a gigantic washing machine” to launder illegal funds. And they had lent out far too much money, especially to Greek banks and companies: their loans amounted to eight times the entire country’s national income.

Everything seemed all right until Greece’s economy crashed and needed not one but two bailouts. During the second one, last year, foreign investors holding Greek bonds were forced to take a “haircut”: they had to agree to a 70 percent cut in the value of their holdings. That gave Greece a little relief, but it plunged the Greek-Cypriot banks into a nearly terminal crisis.'

Gwynne Dyer: Cyprus bank robbery | Georgia Straight

 

[Gimmesometruth]

That's not why the banks went broke..

repost from the previous page...

Following the United States' subprime mortgage crisis in 2007-2008, which led to a domino effect of negative consequences in the global economy, the Cypriot economy contracted by 1.67% in 2009,[8] largely due to a sharp fall in its tourist and shipping sectors.[9] Following the contraction, Cyprus experienced continuous increasing unemployment,[10] and thus entered into a recession. From 2010 to 2012 the economic growth of the country has been weak, meaning that the Cypriot economy has yet to recover to its pre-2009 condition.

Increasing unemployment contributed to an increasing state debt as expenditure on unemployment benefits kept increasing. Following the decision of the European Union for a haircut upwards of 50% on Greek bonds in 2011[11][12], in which Cypriot banks had invested heavily, the Cypriot financial system was unable to absorb the cost. The disproportionate size of the financial sector in relation to the rest of the Cypriot economy meant that a possible collapse of the Cypriot banks would have catastrophic results for the economy. The Cypriot state, unable to raise liquidity from the markets to support its financial sector, requested a bailout from the European Union.