[Sirius]

Originally Posted by Damien

Again in the Cyprus case the money wasn't there. If the bailout hadn't had happened the banks would have collapsed and the uninsured deposits would have been wiped out, everything above €100,000 would have gone. It's being portrayed as the EU, mostly Germany, stealing money but instead it was the EU, mostly Germany, only giving so much for the bailout and thus not fulling backing up the uninsured deposits. Their reasoning for this is that it was suspected that it was mostly Russian tax-dodgers whose deposits were being saved and this was politically untenable.

But the point is that it has now set a precedence and it seems they intend to do it again next time a bailout is needed.

---------- Post added at 17:23 ---------- Previous post was at 17:19 ----------

Originally Posted by Damien

Again in the Cyprus case the money wasn't there. If the bailout hadn't had happened the banks would have collapsed and the uninsured deposits would have been wiped out, everything above €100,000 would have gone. It's being portrayed as the EU, mostly Germany, stealing money but instead it was the EU, mostly Germany, only giving so much for the bailout and thus not fulling backing up the uninsured deposits. Their reasoning for this is that it was suspected that it was mostly Russian tax-dodgers whose deposits were being saved and this was politically untenable.

But the point is that it has now set a precedence and it seems they intend to do it again next time a bailout is needed.

“Cyprus was a template,” he said. “Expect not only bail-ins, which if defined clearly ahead of time could be part of the solution, but also outright confiscatory wealth taxes, disguised as solidarity payments.”

Mr Christensen said bank runs could start “instantaneously” as “normal” depositors that had worked hard to save up for their family viewed their mattress as a safer place for their money than their bank.

So god help the next country that needs help from Berlin