L00b Posted March 18, 2013 Share Posted March 18, 2013 What even more annoying is they class interest as income and tax it, despite the fact that savers have lost money and not gained money.But in the context of LeMaquis' point, don't forget that Cypriot banks have been offerring stonking 7+% rates to savers for a good while now: that's to be contrasted with what rates are available in the UK and most of (essentially northern-) Europe, much heavier taxed as well relative to Cyprus. High return = high risk, the Cyprus haircut basically sets their (local, Russian, Brit, etc.) savers back to the UK (and other heavier-taxed) savers' situation. I'd call it poetic justice, if it wasn't for the growing risk of (indeed) the local bank run going wider within the €zone (in Italy & Spain). It'll be interesting to see what happens when Cypriot banks finally re-open after their 'extended' bank holiday Link to comment Share on other sites More sharing options...
quisquose Posted March 18, 2013 Share Posted March 18, 2013 Our government print more money if they want it, whereas Cyprus cannot. Link to comment Share on other sites More sharing options...
mossdog Posted March 18, 2013 Author Share Posted March 18, 2013 http://www.bbc.co.uk/news/business-12099592 http://www.fsa.gov.uk/Pages/consumerinformation/uk_groups/index.shtml End of "tin foil hat" thread. What an idiotic primary school reply! This is frightening for anyone with savings in a fragile economy, and the ‘peripheral’ eurozone countries in particular. As The Economist puts it: “People who don’t trust banks, and keep their money under the proverbial mattress, will not be touched by this levy; in the past, such people have been regarded as eccentrics. Not any more.” The same goes for gold, the paper adds. That said, I’m not convinced that the biggest immediate worry is a bank run in Greece or Spain or Italy, say, although it’s worth monitoring. The real worry is that this undermines any sort of trust in the eurozone in the longer run. It’s one thing to put up with austerity measures. It’s quite another to start having to worry that your savings might just be confiscated. Your average Cypriot is being asked to pay nearly 7% of their savings as the price of staying in the euro. That might still seem a price worth paying compared to the scale of devaluation they’d see if they quit the euro. But it starts to provide a benchmark for other countries. It can only add to the evidence for anti-euro political parties. "Think on" sunshine! Link to comment Share on other sites More sharing options...
Vague_Boy Posted March 18, 2013 Share Posted March 18, 2013 In 2010 Mr. Bean of the Bank of England suggested that savers should spend their savings to help the economy. Bank of England deputy Charlie Bean says spend, spend to save economy Interest rates are being held down to discourage savers, financial chief admits LINK Had we savers actually done so then, there would be nothing left for them to steal now. Sometimes I think the BoE jackals just don't think things through. Got gold? Link to comment Share on other sites More sharing options...
maxmaximus Posted March 18, 2013 Share Posted March 18, 2013 But in the context of LeMaquis' point, don't forget that Cypriot banks have been offerring stonking 7+% rates to savers for a good while now: that's to be contrasted with what rates are available in the UK and most of (essentially northern-) Europe, much heavier taxed as well relative to Cyprus. High return = high risk, the Cyprus haircut basically sets their (local, Russian, Brit, etc.) savers back to the UK (and other heavier-taxed) savers' situation. I'd call it poetic justice, if it wasn't for the growing risk of (indeed) the local bank run going wider within the €zone (in Italy & Spain). It'll be interesting to see what happens when Cypriot banks finally re-open after their 'extended' bank holiday Wish I had known that for the past several years, obviously I would have had the foresight to take all my money out last month. Link to comment Share on other sites More sharing options...
mossdog Posted March 18, 2013 Author Share Posted March 18, 2013 In 2010 Mr. Bean of the Bank of England suggested that savers should spend their savings to help the economy. LINK Had we savers actually done so then, there would be nothing left for them to steal now. Sometimes I think the BoE jackals just don't think things through. Got gold? "Worth noting"............... The Eurozone finance ministers have signalled their intentions as their latest idea to bailout Cyprus included savers having to surrender up to 9.9% of their deposits in return for a $13 billion bailout. Picture courtesy of Reuters The decision shocked Cypriots and caused a run on ATMs, most of which were depleted of funds within hours. We now understand that Cyprus's parliament has delayed until Monday, a meeting to vote on this levy on bank deposits following indications from lawmakers that they might block this surprise move. This proposed action gives us an insight into just how the political masters of the Eurozone are thinking. The possibility of having your savings raided by the government has just reared its ugly head. Now just try and imagine if you were Greek, Italian, French, Spanish or anyone with savings in the Eurozone, what would you be thinking? Dead right, it could be me next; therefore maybe it’s time to move my savings to a safer place. It will be interesting to observe the reactions of the general public across the Eurozone when the business day gets started. As we see it no amount of reassurance from the authorities will prevent some people from wanting to withdraw at least some of their funds immediately, as a precautionary measure. We are gold and silver bugs what’s this got to do with us you ask? Well, if you are domicile in Cyprus your physical stash of gold and silver hasn’t been subjected to a politically motivated surprise haircut. However, this is not a time to rest on our laurels as we do not know what the politicians will target next. If they target a depositor’s total wealth then gold could be classified under such an umbrella and be subject to some form of confiscation. Our investment strategy has always included holding some physical gold and silver, preferably in your very own hands and certainly not within the banking system. We are not saying that the authorities will never demand it, but it would be an arduous process, whereas deposits in a bank are instantly recognisable and given today’s proposals, they could be instantly reduced. In conclusion we are surprised at this move as we see it sending a shock wave through the banking system which is fragile at best and on tax payer’s life support at worst. It has also alerted the populous as to their intentions and should the masses move to defend their wealth the situation could get a lot worse. Link to comment Share on other sites More sharing options...
maxmaximus Posted March 18, 2013 Share Posted March 18, 2013 In 2010 Mr. Bean of the Bank of England suggested that savers should spend their savings to help the economy. This is the problem; they want us all to save for our future whilst spending all our money. Link to comment Share on other sites More sharing options...
dafodil Posted March 18, 2013 Share Posted March 18, 2013 I wonder if these measures will effect Northern Cyprus. Also getting back to our own dodgy bankers would we not be better changing to a building society account. Link to comment Share on other sites More sharing options...
L00b Posted March 18, 2013 Share Posted March 18, 2013 I wonder if these measures will effect Northern Cyprus.Turkey has also been offerring stonking interests rates (9%+) for a good while now. Though, they're not in the € zone, or the EU for that matter. Northern Cyprus will do just fine, and -expectedly- improving shortly Wish I had known that for the past several years,Knowledge of CY savings rates was only ever a Google away. obviously I would have had the foresight to take all my money out last month.None was required if you simply sat down and assessed (no particular inside knowledge required) the risk represented by a near-bankrupt country (i) being in the €zone and (ii) offerring silly rates with bank deposits 8 times the size of its GDP. It's not as if Iceland, then the Greece bailouts with big long strings, haven't happened, is it? If you're feeling a little speculative, even at its current price, I'd say gold is likely getting a nice shot in the arm on markets atm Link to comment Share on other sites More sharing options...
maxmaximus Posted March 18, 2013 Share Posted March 18, 2013 Turkey has also been offerring stonking interests rates (9%+) for a good while now. Though, they're not in the € zone, or the EU for that matter. Knowledge of CY savings rates was only ever a Google away. As for foresight, none was required if you simply sat down and assessed (no particular inside knowledge required) the risk represented by a near-bankrupt country (i) being in the €zone and (ii) offerring silly rates with bank deposits 8 times the size of its GDP. It's not as if Iceland, then the Greece bailouts, haven't happened, is it? Maybe it’s been their plans for years, offer stonking rates, wait for people to put all their money into those accounts and then raid them. Link to comment Share on other sites More sharing options...
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