Enthusiast
I'd really like to hear the European perspective on what is going on in Cyprus right now.
Obviously its a nightmare. My big concern, as an American, is the wider effects of a run on the banks in Cyprus on the larger European economy and world wide banking as a whole. If one bank fails, it can have a big effect.
Thoughts?
A woman goes to the doctor to figure out why she is having breathing problems...The doctor tells her she is overweight. She says she wants a second opinion...the doctor says, "your ugly".
Enthusiast
...as an American you should just be concerned with not pissing off the middle east. Stop trying to police the world under the guise of "concern" and realise this banking issue will be rectified by a bunch of white collar goons just like every other banking issue in the past century (barring the two WWs). /endthreadOriginally Posted by roosterjuicer
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Enthusiast
Cyprus is another in the European domino effect. However, if the Cypriot proposal to levy a tax on deposits and limit withdrawals goes through, I think that would have just as devastating an effect on banking in Europe as a bank failing. Fearing a similar tax at home, a lot of folks might start closing out their accounts elsewhere. That could lead banks which are stable but on the edge to go over that edge. Cyprus does not worry me as much, simply because the cash injections needed to stabilise it - provided the EU follows roughly the same formula as they have elsewhere - would be a relative drop in the bucket. EU lawmakers might actually agree to just go ahead and get Cyprus done so they can get back to bickering about Spain and Greece.
An it harm none, do as ye will
Approximately 79% of statistics are made up.
Furniture
In terms of size Cyprus' economy isn't quite large enough to bog down the UE. At least not as much as Portugal, Ireland or Greece have; nevermind Spain or Italy.
The problem with Cyprus' bailout is that the levy on deposits could set a very dangerous precedent. And this would indeed be devastating.
Lack of charisma can be fatal.
Visca Catalunya!
Enthusiast
That's my concern. Especially if one or two banks there fail.
A woman goes to the doctor to figure out why she is having breathing problems...The doctor tells her she is overweight. She says she wants a second opinion...the doctor says, "your ugly".
Furniture
Well it still hasn't been approved by the parliament. However if it isn't, Cyprus could be out of the Euro or do a messt default and those aren't particularly enticing situations either.
It's a delicate scenery that's for sure.
The vote will be held tomorrow early in the afternoon.
Lack of charisma can be fatal.
Visca Catalunya!
Enthusiast
What's the sentiment in Spain on it right now? Are people in favor of the tax, against, do they think it will happen there?
A woman goes to the doctor to figure out why she is having breathing problems...The doctor tells her she is overweight. She says she wants a second opinion...the doctor says, "your ugly".
Supporting Member
Cyprus has always been a tax haven for the rich, some consider it to be a cowboy/banana republic. If they want to belong to the grown-up world they have to pay a price, and preferably the price has to be paid by the people who used the Cyprus banking system to avoid taxes in other countries. Otherwise they might want to consider to join forces with the Cayman Islands.
"I find the whole business of religion profoundly interesting, but it does mystify me that otherwise intelligent people take it seriously." Douglas Adams
Enthusiast
So far all of the reports I have heard (scant coverage in the US of international proceedings, so it isn't many) say that people are very much against this move.
An it harm none, do as ye will
Approximately 79% of statistics are made up.
Furniture
Someone's been reading The Economist!
I don't bother with newspapers anymore. Even our paper of record, The Globe and Mail, is shit.
Enthusiast
The news on Cyprus was brutal today... Especially for crude markets. WTI went down about $1.60ish and the Brent spread closed even more, and that was even on a good economic news day for the US (housing starts increased).
Dropped me quick when the news hit and now I'm holding contracts overnight...Luckily, there was a good recovery in Asian trading market hours. The consensus from some analysts is that this "may" not bring a huge burden on the worldwide economy as a whole... you could say that $10 billion is piss money on this scale. At least not on the degree that Greece has made on European markets.
World markets seem to be making a recovery, albeit at a snails pace. If EMs can get it together we might be seeing a rise in worldwide industrial production. That is if interest rates and inflation don't bog down the BRICs and Europe.
Enthusiast
I get it for free, it's interesting, and is a hell of a lot more informative about what's going on outside of our ivory tower here in the US than most anything else I've read. Plus they invented the Big Mac Index, case closed. So I suppose my skull full of mush has at least for now been put in some kind of economics alignment!
An it harm none, do as ye will
Approximately 79% of statistics are made up.
Furniture
It's better for inside US news as well. It is just, better.
Super Moderator
Most European countries ( cant be sure for Cyprus ) provide the pension arrangement via the government. So the 25k in a US retiree account is really in the governments hands having been collected via taxes.
Private pensions aren't historically big in the UK but have been forced on many since Thatcher and her cronies raided large company pension schemes
Not many British pensioners have those kind of sums and if they do they are then "means tested" for certain health benefits. Leading to many having to spend all of it for basic care in England before they will get assistance from the state. ( In Scotland we still provide free care for pensioners - and most Scots are happy to do so for the better good )
"A woman without curves is like a road without bends, you might get to your destination quicker but the ride is boring as hell'
Enthusiast
Well, looks like they aborted the bank fee plan.
An it harm none, do as ye will
Approximately 79% of statistics are made up.
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