The New Corralito (6.75-9.9% Tax On Savings)

[French jurist]

Sorry for the title, that's in Cyprus today.

Full details here but in French http://www.francetvinfo.fr/chypre-prelever-l-argent-des-epargnants-pour-sauver-le-pays-une-fausse-bonne-idee_282723.html (exhaustive & neutral article = surely an English counterpart can be found).

Vast subject but I wonder if it's not a mistake that this "tax" is applied directly by the guilty ones (banks). At least when banks were refinanced for their own mistakes ("privatizing the profits, mutualizing the risks"...) in some other countries (other forms of corralito after all), it was through taxes.

I guess a few banks will be burned down (1970's revival of the Red Brigades, lol...).

 

[French jurist]

second part of my message


(exhaustive & neutral article = surely an English counterpart can be found).

Vast subject but I wonder if it's not a mistake that this "tax" is applied directly by the guilty ones (banks). At least when banks were refinanced for their own mistakes ("privatizing the profits, mutualizing the risks"...) in some other countries (other forms of corralito after all), it was through taxes.

I guess a few banks will be burned down (1970's revival of the Red Brigades, lol...).

 

[dennisr]

No problem, just print more money.

http://www.bloomberg.com/news/2013-03-16/euro-area-takes-aim-at-depositors-in-cyprus-bailout.html

 

[Joe]

The Powers That Be are going "All In" with this Bailing out the Banks BS. We're told that eventually the economy will come around. I doubt it, but my economic predictions are almost as bad as most economists.

How will this effect Argentina? Since this is a problem of excessive debt and Argentina did the right thing and defaulted, Argentina will suffer less than those countries that insist on bailing out the banks by levering up public debt - or as in this case raising taxes.

Argentinians said No to the banking cartel, The Greeks, Irish, Spanish, Cypriots and Portuguese are paying dearly in higher taxes and increased public debt for the benefit of staying in the Euro and bailing out the banks - Boludos...

Which is the next country they will hit will a tax on bank deposits: Spain, Ireland?

 

[Ikaros]

Cyprus is the second experiment. After the first failed experiment of Greece. After witnessing that the austerity measures especially in Greece (Italy Spain and Portugal as well )does not bring development but the opposite.They decided a still more radical "fully democratic" way. If this will not work either the next experiment country will be big.Give it an elapsed time of aprox 2 years.

 

[Ikaros]

One more fact.The Cypriot economy used to be one of the strongest ( for the countrys size ) and the economic features a role model.The Cypriot Lira ( the former currency ) one of the strongest of the worlg (1 Cyp Lira was about 2 English pouhds ). In 2007 when Cyprus switched to the Euro it was the only economy who stand all the criteria.
What happened in these 6 yeard and let to this decision?

 

[expatinowncountry]

One more fact.The Cypriot economy used to be one of the strongest ( for the countrys size ) and the economic features a role model.The Cypriot Lira ( the former currency ) one of the strongest of the worlg (1 Cyp Lira was about 2 English pouhds ). In 2007 when Cyprus switched to the Euro it was the only economy who stand all the criteria.
What happened in these 6 yeard and let to this decision?

The strength of a currency is not measured by its nominal exchange rate. Otherwise, would you say that the almaighty Argentine peso is stronger than the Japanese Yen, because the Yen is 95 to the dollar???

I would never call an economy so dependant on others as a strong economy. Cyprus works as a financial, energy and shipping hub for Europe... so when Europe does not do well, Cyprus gets little business. No relationship here with the evil IMF...

 

[camberiu]

Sorry for the title, that's in Cyprus today.

Full details here but in French http://www.francetvi...e_282723.html�� (exhaustive & neutral article = surely an English counterpart can be found).

Vast subject but I wonder if it's not a mistake that this "tax" is applied directly by the guilty ones (banks). At least when banks were refinanced for their own mistakes ("privatizing the profits, mutualizing the risks"...) in some other countries (other forms of corralito after all), it was through taxes.

I guess a few banks will be burned down (1970's revival of the Red Brigades, lol...).

It will be interesting to see if there will be bank run on the other PIIGS on Monday as a result of this. This could blow sky high in the faces of the Eurocrats.

 

[Ikaros]

Tomorrow (Monday is a "bank" (ironic) holiday in Greece ,Russia and Cyprus.The Cypriot goverment announced that the banks will remain closed on Tuesday as well.
As for a bank run in Greece ,Greeks did it 2 years ago and stashed their money at home or in Cypriot banks (double irony). It is not a coincidence that all of this happened on a long weekend.
I am refering to Russia as well because half of the money in the Cypriot banks belong to Russians (especially Ukranees)