Savers to lose money in EU bailout

[JohnD]

So your hatred of the European Community causes you to criticise them for taking on the lion's share of bailing out the collapsing Cypriot banks.

This is what you said:

But it's being implemented by corrupt eu finance ministers. How much longer will people sit idly by and let these barstewards get away with this?

Sit idly by and let them them pump billions in?

The EU is coming to the rescue of these collapsing Cypriot banks by shovelling billions into them. The Cyprus government can't afford to do it.

What sane person would blame the people who are providing the money to save the Cypriots?

You're blinkered and irrational.

 

[Norcon]

What sane person condones stealing money from savers? **************Is that the camp you align your self with JD?

Your beloved eu is breaking apart at the seams. The hatred against germany is building. Every week in greece effigies of merkel are being burned.
Go out there and start preacing from your soapbox and see how long you last.

Let the people vote and lets get out.

 

[JohnD]

What sane person condones stealing money from savers? hitler probably would! Is that the camp you align your self with JD?

Foolish boy.

The Cypriot banks are going bust and depositors will lose money.

Thanks to the EU bailing them out, the depositors will lose far less of their money.

And your warped irrational mind tries to put fictional blame on the EU.

BTW your insult and personal abuse are unacceptable.

 

[Norcon]

What sane person condones stealing money from ********************* Is that the camp you align your self with JD?

Foolish boy.

The Cypriot banks are going bust and depositors will lose money.

Thanks to the EU bailing them out, the depositors will lose far less of their money.

And your warped irrational mind tries to put fictional blame on the EU.

BTW your insult and personal abuse are unacceptable.

So that makes it ok to steal from savers?
Your're the europhile. Why don't you supply 100% of the funds needed?

 

[Astra99]

I've said it before, and I will say it again.

The Euro was an attempt by France and Germany to form the United States of Europe with them calling the shots. How, HOW, can highly industrialised nations like Germany and France work on a level platform with Greece, Spain and Portugal, which are far less industrialised, relying mainly on agriculture and tourism?

I can see the Euro imploding on itself. The ECB is in hock for huge amounts in loans and guarantees, much of which is "guaranteed" by Germany. The German people are already showing signs of discomfort with the situation, so if things deteriorate much further, Frau Merkel will be out, and Germany will be back to the Mark.

Farewell to the Euro, hello again to the Drachma, Escudo, Peseta and Punt (among others!) Then each country's currency can float to find its own level, and things can start working properly again.

I believe it was a good thing that John Major, when Chancellor took us into the Exchange Rate Mechanism. What happened there told him in no uncertain terms that the single currency was definitely NOT for Britain!

 

[JBR]

Your beloved eu is breaking apart at the seams. The hatred against germany is building. Every week in greece effigies of merkel are being burned.

I'm afraid I know nothing about economics, but I do know that I'd be a trifle upset if some Brussels bureaucrat stole 10% of my savings.

However, there is a light at the end of the tunnel. It's looking more and more likely that the Euro will collapse (as I have been predicting for some time now); apparently, the Germans are talking about jacking it in and returning to the Mark.

Better still, I can foresee the EU breaking apart as well in the not too distant future. This stupid experiment is beginning to be seen as a dismal failure but, unfortunately, too late to avoid the damage that has already been done.

As I said, I know nothing of economics so can someone explain to me how we, the richer countries of Europe, benefit from giving money to the poorer countries?

 

[JohnD]

I'm afraid I know nothing about economics, but I do know that I'd be a trifle upset if some Brussels bureaucrat stole 10% of my savings.

And would you, like Norcon, take offence if your bank went bust, and the EU bailed it out, and paid most of its deficit, so enabling it to repay 93.3% to you, and saving you from losing all or most of your money?

The idea that the EU is taking money out of the Cypriot banks is the absolute reverse of the truth. They are putting billions in.

 

[AronSearle]

Some thoughts.....

Who sticks 100k in a bank?

If you have that kind of money, shouldn't you perhaps be a little careful about which bank you stick your money in.

When UK councils stuck millions of pounds into Icelandic banks, I remember lot's of people thinking how stupid the councils where to be so risky with that money.

Maybe if people do start to lose money in banks, they will actually start being a bit careful where they bank.

People go on about reckless banks, but what about reckless savers?

When a business can extract money from customers no matter it's practices, where is the incentive to be a "good" business?





As to the whole "EU Stealing money" argument, can't you see it's like two bald men arguing over a comb. The euro currency is inappropriate, and central eu governments can't even get their own accounts straight (how many times do they fail to get their accounts signed of).

If you vote for a pro EU/Euro political party, stop complaining, just lube up and bend over, you asked for it.

 

[JBR]

I'm afraid I know nothing about economics, but I do know that I'd be a trifle upset if some Brussels bureaucrat stole 10% of my savings.

And would you, like Norcon, take offence if your bank went bust, and the EU bailed it out, and paid most of its deficit, so enabling it to repay 93.3% to you, and saving you from losing all or most of your money?

The idea that the EU is taking money out of the Cypriot banks is the absolute reverse of the truth. They are putting billions in.

My bank isn't going to go bust...

...if we get out of the EU now!

I'd still like to know how rich countries benefit from subsidising poor countries.

 

[longdogs]

Slightly off topic but would the bail out affect currency rates? We're off to Cyprus in a few months so if the rate is gonna be slashed, should I consider buying Euros now.

 

[chapeau]

I'd still like to know how rich countries benefit from subsidising poor countries.

In the long term they don't.

In the short term the rich country will benefit because the poor country will have the cash to purchase the rich country's exports. This is all on borrowed money of course, but short term that doesn't matter.

The fact the poor country is in the same currency union as the rich country also helps out. This means the rich country has an artificially low exchange rate which allows them to sell to non-euro countrys too. The poor country has an artificially high exchange rate - but that doesn't matter as credit was cheap.

This is how Germany and Greece have both benefitted from the Euro (short term). Greece has been able to live the life of riley which they really cannot afford, and Germany has been able to export like crazy at prices that are artificially cheap.

We are now entering the medium term, this is when it cannot continue in the same way, but the can is being kicked down the street.

So the worst is yet to come and it's going to be ugly.

 

[maltaron]

The thing you seem to forget, JD, is that the EU is not a money factory, all the cash it "lends" comes from taxpayers. ( In fact it is'n't money, its a bit of paper which lumbers the taxpayer with debt for the future)

 

[JohnD]

what makes you think I've forgotten the nature of money?

I've spent my time trying to point out that Norcon is complaining about the EU bailing out busted Cypriot banks, and him trying to make out (untruthfully) that the EU is taking money out, whereas in fact, it is putting money in.

 

[ellal]

When UK councils stuck millions of pounds into Icelandic banks, I remember lot's of people thinking how stupid the councils where to be so risky with that money.

No you didn't 'soft in the head'...

You were too busy trying to tell us that nobody could see it coming...

 

[JBR]

I'd still like to know how rich countries benefit from subsidising poor countries.

In the long term they don't.

In the short term the rich country will benefit because the poor country will have the cash to purchase the rich country's exports. This is all on borrowed money of course, but short term that doesn't matter.

The fact the poor country is in the same currency union as the rich country also helps out. This means the rich country has an artificially low exchange rate which allows them to sell to non-euro countrys too. The poor country has an artificially high exchange rate - but that doesn't matter as credit was cheap.

This is how Germany and Greece have both benefitted from the Euro (short term). Greece has been able to live the life of riley which they really cannot afford, and Germany has been able to export like crazy at prices that are artificially cheap.

We are now entering the medium term, this is when it cannot continue in the same way, but the can is being kicked down the street.

So the worst is yet to come and it's going to be ugly.

Thank you for your explanation. It sounds as if we really ought to be leaving now before it's too late.

Somehow, I don't trust the people in Brussels. I have much more faith in the Commonwealth countries with which we used to trade.