cyprusgrump wrote:Maximus wrote:cyprusgrump wrote:Demonax wrote:Oceanside50 wrote:I agree with Sotos, we Greek Cypriots have seen a lot worse then this. If one compares this to the 1974 Turkish invasion, where 200,000 Greek Cypriots were made into refugees and the whole country's economy virtually destroyed, this banking thing is nothing.
And if we have to pick olives from a tree and relearn how to prepare them, so what? Amazingly it may even be a fun thing to do.... In fact in the not so distant future the bank shares most likely will turn into a profit as with the AIG bailout.
http://www.bloomberg.com/news/2012-12-1 ... -sale.html
"....The Treasury Department is selling 234.2 million shares at $32.50 each in the sixth offering since the 2008 rescue. The proceeds boost the U.S. profit on the rescue that began in 2008 to $22.7 billion, according to a statement today from the Treasury, which injected capital through the Troubled Asset Relief Program..."
Yes we do need some perspective. After the initial shock, let's recall that people’s savings are not being wiped out but effectively taxed (albeit in exchange for shares) in order to prevent the banking collapse that Germany was threatening. It's unethical, in my view, especially on smaller savers but the alternatives on offer seem to have been much worse.
This is a gamble that it won't lead to a bank run in Cyprus and the rest of the EU. After all, what good it would do people to withdraw their money now, after the levy? Residual deposits are very very safe now. My guess is that the EU are gambling this will all blow over after the initial fuss.
I'm not sure this is a wise move by the EU though. People can say what they want, but from now on every rumor of a bailout for any eurozone country has the potential to trigger a bank run. At least Cyprus has got this out of the way first...
The overwhelming view of the people I have spoken to today (Cypriots and expats) is that they will remove their funds from Cyprus as a result of this....
they would still contribute and have the equity in return and run the risk of it happening again in another bank, somewhere else in the EU.
Assuming they kept their funds within the EU...
I know absolutely for sure of one person that will move their funds to Australia next week...
Tell him bye f bye. Sounds like a tantrum.
He was hoping to come to CY to make money here, now suddenly it doesn't suit him. What does he want, tears?
We have a 5 year uphill period until the hydrocarbons ar out then we woun't need them.
FFS, im sick of hearing these whinging gits about moving their money after this. I am not say i agree with it, but we are where we are and the alternative would have been much more painful for a lot more people.
