CYPRUS - These people are geniuses.

il_principe

DonDaddyD wrote:

Question, why is this part of the Europe mediterranean - specifically Greece, Turkey, Cyprus - seemingly in more shite than other parts of the Europe?

Turkey? Turkey isn't in the shite at all. Quite the opposite. Their economy grew by more than 8 per cent in both 2010 and 2011, last year it slowed to 2.2 per cent, but is still in far better nick than most of Europe. Their sovereign credit rating has been upgraded to BB+ as well. It's just a pity that the current Government have worryingly Islamist tendencies.

davmaggs

Rick Chasey wrote:

Re deposit insurance being 'fictional'.

https://www.google.co.uk/search?redir_e ... 0insurance

Please point at an exact policy that I could go out and buy today. Pointing at Google hardly backs up an assertion.

davmaggs

Sketchley wrote:

IIRC deposit of less than 100k euro are insured by the eu. If the bank collapases they get there money back. Any deposit in excess of this you potentially can lose everything unless the bank is rescued and you are paid off. People 'loosing' 10% should in fact look at this as getting a 90% payout on their uninsured investment. Which is a good deal.

To put this in a little perspective, if you owed the bank £100k and went for an Insolvancy Volentary Agreement becuase you lost your job and couldn't pay it back, the bank would most lucky to get 10% to 15% of that back.

Or to put it another way, if you had a £100k outstanding invoice as small company and owed to you by a ltd company that went into liquidation, you would be lucky again to get more than few points back.

Of course both of the above depend a lot on circumstance.

I have not issue with the big foriegn investers in cyrus getting hit, after all they invested in foriegn bank why? To reduce tax or get better return etc? I suspect thay initally made or saved this 10%, they haven't lost out. I am concerned about reprocussions of this as these investments are bound to pulled out sooner or later by one means or another.....

Where I do have sympathy is for the hard working familiy man that's saved and now lost some of thier money, where as someone earning the same who blew the lot on fast cars and women has not lost a thing!

Your 10% figure is incorrect. The current amount being seized is 40%, with the option to go to 60%.

sketchley

davmaggs wrote:

.....

Your 10% figure is incorrect. The current amount being seized is 40%, with the option to go to 60%.

Sorry, my fault for not keeping up with latest. Point is still valid as investors with deposits over 100k euro, and therefor not insured by EU, should assume a 100% loss as bank is now insolvant, getting 60% or even 40% back is preferable to zero. What they should have done and didn't is either not invest in the first place or got out when they could. No one made them invest there, and they could of put the money in a much safer german bank if they wished..... Or even cash / gold in Swiss bank saftey deposit box.....