Cyprus promotes a saver mentality

[Dauphin]

What would the depositors get if the banks were allow to fail?

Everything up to €100,000 was under deposit insurance, which is there to provide financial stability. By ripping up that insurance many if not most people will just remove their money from Cypriot banks. How this is good for the long term prospects of Cypriot banks, or even short term by creating a run, baffles me.

If the deposit insurance covered only 90% and they declared the banks "failed" I may be more understanding of the decision.

[Aeson]

Everything up to €100,000 was under deposit insurance, which is there to provide financial stability. By ripping up that insurance many if not most people will just remove their money from Cypriot banks. How this is good for the long term prospects of Cypriot banks, or even short term by creating a run, baffles me.

If the deposit insurance covered only 90% and they declared the banks "failed" I may be more understanding of the decision.

Yah, they should cover up to 100,000 and then everything else should go towards the bailout. However I don't know if that would really be any better in regards to providing financial stability. I know the first thing I do when a bank fails is go to deposit money in similar banks in similar situations.

[Jon Miller]

Good god, this is a dumb thing to say--you don't actually understand the concept of limited liability, or why it's important that we have it. You really think it is "justice" to punish poor business decisions with anything other than business consequences? I wonder what sort of businessmen we'll get when we start doing a Darth Vader you-have-failed-me-for-the-last-time sort of thing whenever we go into a recession?

It is obvious that this is part of the problem.

Business managers have become adept at putting the cost onto someone else (future shareholders or tax payers) while getting the profits themselves (which goes % wise to them).

Limited liability is a large part of the problem. What is happening is that no one is liable... except finally the tax payer. Which is often not the primarily the managers/etc.

JM

[dannubis]

Reg knows how his bank is run and is fully aware of the long term implications of their policies...

[Fake Boris]

Responsibility

[Krill]

Supposedly a lot of the money in the Cypriot banks was Russian and suspected of being laundered, so the Germans were not willing to bail them out.

[The Mad Monk]

Did Cyprus have good interest rates?
The tax, while punitive, doesn't seem that horrible. Instead of being mad at the government, maybe savers should get pissed at the banks for ****ing up the economy.

The best possible action any country could take is to execute everyone who works in the financial industry... except, of course, for the secretaries and janitors and whatnot.

It's not a tax on income, it's a tax on wealth, which has presumably already been taxed as income. This isn't taking a percentage of what they earned for a year, it's taking from from however many years it took to save it. This should be criminal.

[MrFun]

[MrFun]

[MrFun]

[Dauphin]

Are those man pictures what you keep in your safety deposit box in Nicosia?

Just wondering the relevance on the off-chance it wasn't an account hack.

[MrFun]

Are those man pictures what you keep in your safety deposit box in Nicosia?

Just wondering the relevance on the off-chance it wasn't an account hack.

shhhh ......

[loinburger]

Reported for e-******ry

[MrFun]

Reported for e-******ry

You're no fun. Lighten up.

[MrFun]