Board index » The IRISH PROPERTY BUBBLE » The Central Bank » IMF Watch (IRL)

Post new topic This topic is locked, you cannot edit posts or make further replies.  [ 288 posts ]  [Go to page]   Previous  1 ... 24, 25, 26, 27, 28, 29  Next
Author Message
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Thu Mar 21, 2013 8:15 pm 
Offline
Of Systemic Importance

Joined: Sep 13, 2012
Posts: 5465
Daniel Plainview wrote:
They're completely finished as a financial centre now however they cut it. Totally annihilated.


Still, they have the weather.

Image

_________________
"It's easy to confuse what is with what ought to be, especially when what is has worked out in your favour"
Tyrion Lannister


Top
 Profile  
 
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Thu Mar 21, 2013 8:17 pm 
Offline
Property Magnate

Joined: Nov 8, 2006
Posts: 519
Daniel Plainview wrote:

They're completely finished as a financial centre now however they cut it. Totally annihilated.


The Swiss must be rubbing their hands at prospect of all the money being moved to other safe havens


Top
 Profile  
 
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Thu Mar 21, 2013 8:24 pm 
Offline
Under CAB Investigation

Joined: Jul 6, 2006
Posts: 2021
do u think they are rubbing their hands with glee? :D , who has that on their signature?

_________________
Join me and together we will rule the galaxy as father and son


Top
 Profile  
 
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Thu Mar 21, 2013 8:43 pm 
Offline
Single Home Owner

Joined: Mar 6, 2013
Posts: 169
Daniel Plainview wrote:
ex-Patrick wrote:
slasher wrote:
Quote:
As Erik Nielsen of UniCredit argues, depositors in Cyprus have benefited from higher rates of interest than elsewhere in the eurozone:
“A Cypriot (or foreigner) who placed €100,000 in deposit in Cyprus in 2008 would by now have earned just around €15,000 more than if he had placed that money in Italy or Spain (and some €23,000 more than if he had placed it in Germany). Why does the Cypriot parliament (and many commentators) seem to suggest that a 15 per cent tax on such deposits (which would cover the bill also for the sub-€100,000 deposits) would be unreasonable now the banks are in trouble, but that German, Italian and other eurozone taxpayers should rather foot the bill? To me, the Cypriot position is simply unsellable in the rest of the eurozone.”
http://www.ft.com/cms/s/0/aebf3e16-913b-11e2-b4c9-00144feabdc0.html
Similar piece in Bloomberg: http://www.bloomberg.com/news/2013-03-1 ... -2008.html



But borrowing rates have been far higher too. Which cost the same "man on the street" money.

Anyway, latest rumour is a bad bank that all uninsured deposits (i.e. >€100k) go into and take a 40% haircut.

So €1MM on deposit last week will now be .... €640k ....... :sick:.

They're completely finished as a financial centre now however they cut it. Totally annihilated.

If true will they still need to recapitalize their banks?


Top
 Profile  
 
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Thu Mar 21, 2013 8:44 pm 
Offline
Planning Tribunal Attendee
User avatar

Joined: Jul 4, 2012
Posts: 1363
As expected the Germans ramped up the pressure on the Cypriots. The pressure must be telling at this stage. I can't see any deposits under 100k being touched in plan B. Its all a bit academic as the bailout will be insufficient and the economy will be a wasteland by the next bailout. This episode will knock at least 20% of GDP.

_________________
A housing boom is the economic equivalent of a tapeworm infection Tim Harford

"Those who yearn for the end of capitalism should pray for government by men who believe that all positive action is inimical to what they call thoughtfully the fundamental principles of free enterprise." - JK Galbraith


Top
 Profile  
 
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Thu Mar 21, 2013 8:48 pm 
Offline
Under CAB Investigation

Joined: Feb 19, 2009
Posts: 2506
lord vader wrote:
do u think they are rubbing their hands with glee? :D , who has that on their signature?



Interestingly I think some people are looking at Switzerland now ... and the size of UBS and CS. Combined I think they're about fifteen times the size of Swiss GDP... So that Swiss deposit account now looks a little bit less safe than it did two weeks ago!

_________________
Profits = Investment – Household Savings – Government Savings – Foreign Savings + Dividends

(i.e. company profits are directly fed, in part, by government deficits)

BANKS DON'T LEND RESERVES
As confirmed by the Bank of England


Top
 Profile  
 
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Thu Mar 21, 2013 10:04 pm 
Offline
Nationalised
User avatar

Joined: Jul 26, 2009
Posts: 14892
Plan C for Cyprus - -> http://namawinelake.wordpress.com/2013/ ... or-cyprus/

Quote:
So what will Plan B for Cyprus be? Politicians are amongst the last people to face reality, so you can expect the Plan B – cobbled together under the oversight of the Cypriot president which is right now being presented to parliamentarians – to include temporary expropriation of private pension funds, a deposit levy on deposits over €100,000 and perhaps a loan from the Russians secured on the Cypriot gas fields. It won’t be enough to save the Cypriot banking system – the genie has been let out of the bottle: Cypriot politicians backed by the EuroZone of France and Germany have accepted as feasible expropriating deposits. Not until there is a new Cypriot pound and an independent central bank in Cyprus, will confidence return

there is more


Top
 Profile  
 
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Thu Mar 21, 2013 10:06 pm 
Offline
Nationalised
User avatar

Joined: Jul 26, 2009
Posts: 14892
Turkey may challenge Cypriot use of gas reserves in bailout - -> http://www.reuters.com/article/2013/03/ ... AI20130321

Quote:
(Reuters) - Turkey could challenge any move by Cyprus to speed up offshore natural gas exploration as a way of attracting desperately needed investment to save its teetering economy, senior Turkish officials said on Thursday.
The European Union has given the island until Monday to raise the billions of euros it needs to clinch an international bailout or face the collapse of its financial system and likely exit from the euro currency zone.

there is more


Could gas save Cyprus? If only it were so simple - -> http://www.economist.com/news/finance-a ... le-hot-air

Quote:
Image

Bringing the gas to market is likely to be difficult. A pipeline to Turkey, which is desperate for more gas, is out of the question. One to distant Greece to connect with Europe’s gas network would be fearsomely expensive. Cyprus doesn’t have enough gas (or cash) to justify building a liquefied natural gas (LNG) plant, which would cost $20 billion or so. Israeli gas from the same offshore basin could be landed on Cyprus for liquefaction. A lack of security and space make building an export terminal in Israel itself unlikely, but hardliners there seem to be winning the argument that the country should keep its gas for domestic consumption. Such doubts lead Morgan Stanley to give a wide estimate of what Cyprus’s gas is worth: anywhere between €5 billion ($6.5 billion) and €32 billion.

there is more


Top
 Profile  
 
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Fri Mar 22, 2013 9:42 am 
Offline
Nationalised

Joined: Nov 6, 2006
Posts: 9011
Location: Hollywood
http://www.rte.ie/news/2013/0322/377848-cyprus-bailout/

Quote:
Meanwhile, former Cypriot finance minister Marios Mavrides said if a bailout package was not secured by Monday, he was afraid the country would go back to printing the Cypriot pound.

Speaking on RTÉ’s Late Debate last night, Mr Mavrides, said going back to the Cypriot pound would lead to deflation and a lowering of living standards.

He also said he thought the Cypriot Central Bank would have considered the move by now.


Top
 Profile  
 
 Post subject: Re: Cyprus would seek EU bailout money 'if necessary
PostPosted: Fri Mar 22, 2013 10:49 am 
Offline
Nationalised
User avatar

Joined: Jan 1, 1970
Posts: 23258
Blindjustice BATONEFFECT wrote:
http://www.rte.ie/news/2013/0322/377848-cyprus-bailout/

Quote:
Meanwhile, former Cypriot finance minister Marios Mavrides said if a bailout package was not secured by Monday, he was afraid the country would go back to printing the Cypriot pound.

Speaking on RTÉ’s Late Debate last night, Mr Mavrides, said going back to the Cypriot pound would lead to deflation and a lowering of living standards.

He also said he thought the Cypriot Central Bank would have considered the move by now.


Since they only joined in 2008 they probably didn't decommission all the printing gear. There was an article maybe linked to here from about two years ago the angle being the Bank of england was concerned at the rise in orders for Currency grade printing presses by other central banks.

If they do resort to their own currency next week I wish the people of Cyprus all the luck and providence in the world.

_________________
Follow The Pin - https://twitter.com/dailypinster

"Politicians are always realistically maneuvering for the next election. They are obsolete as fundamental problem-solvers." - Buckminster Fuller

"I was comfortable with a couple of banks being married today, instead i wake up and find I'm married to the banks." - Catbear

Image


Top
 Profile  
 



Display posts from previous:  Sort by  
Post new topic This topic is locked, you cannot edit posts or make further replies.  [ 288 posts ]  [Go to page]   Previous  1 ... 24, 25, 26, 27, 28, 29  Next

    Board index » The IRISH PROPERTY BUBBLE » The Central Bank » IMF Watch (IRL)

Who is online

Users browsing this forum: No registered users and 1 guest


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Jump to:  

Follow, Retweet @dailypinster



Pyramid Built, Is Better Built! - Latest Property Discussions www.thepropertypin.com