Eurozone will collapse...

[Sirius]

Originally Posted by Damien

But you wanted them to take on more debt. This whole bank levy was so that Cyprus contributed to bailing out their banks and therefore reduced the amount of extra debt they'll take on.

But they have took on more debt anyway and i bet a big fat interest rate to boot which will cripple them..

Originally Posted by Damien

But you wanted them to take on more debt. This whole bank levy was so that Cyprus contributed to bailing out their banks and therefore reduced the amount of extra debt they'll take on.

Many people feel aggrieved that the government put the Cypriots in the position of needing such a bail out in the first place .They will also feel aggrieved that Cyprus has been the only country to have their accounts raided .The EU could have given Cyprus the full amount and imposed stricter and longer austerity measures ,even put one of their own in power as they did with Greece(i think it was Greece) Demanding that joe public stump up their savings to bail out incompetent bankers is a not on ,no matter how it is dressed up .

[Osem]

Originally Posted by Qtx

Merkel has been flexing her manly muscles a lot lately. None of the rest of the world like her but she is still there thanks to the germans. Would love to line her up as the scapegoat but the Cypriot PM has all of this on his own shoulders. Not that he will care as those whose money he saved will reward him with enough cash to live comfortably on.

She has an impending election to worry about. Hence the extra tough talk.

Originally Posted by Sirius

But they have took on more debt anyway and i bet a big fat interest rate to boot which will cripple them..

exactly ,and i think we are all agreed that in the near future a further bail out will be required so who's money will they take then .Have they spared the ones with less than 100,000 euros for the next time

All the banks reopen tomorrow apart the bank of Cyprus and the Lalkl so i hope that every single citizen arranges to move their money out of cyprus

---------- Post added at 17:30 ---------- Previous post was at 17:29 ----------

Originally Posted by Osem

She has an impending election to worry about. Hence the extra tough talk.

wonder how this will affect that, after all raiding peoples accounts will not be popular there anymore than it is anywhere else

[ntluser]

Germany is probably the strongest economy in the Eurozone but even they won't be able to save all the weaker economies in the EU. The Euro problem has been postponed not solved and sooner or later we will have another Euro crisis.

The Eurozone can only really survive if the EU nations go back to their original currencies and operate at a level they can afford. The Euro-one-size-fits-all-philosophy is not realistic and is like asking runners of vastly varying abilities to turn in an Olympic-level running performance over an ever-changing course..It would be extremely tough for the best runners but crucifying for the others.

Cyprus is the latest casualty but there will no doubt be others. Indeed the UK is beginning to suffer as the loss of the AAA credit rating shows.

The thing that intrigues me is whether or not the leaders of these countries cut their salaries given that they are the ones who made the decisions.If the UK is typical the government decision makers have retained their salaries, expenses and pensions while cutting the salaries & pensions of others and causing mass redundancies.

It'll be interesting to see how this all turns out as the budget did not offer much hope and gave no real practical solutions to the nation's problems.

Originally Posted by martyh

Many people feel aggrieved that the government put the Cypriots in the position of needing such a bail out in the first place .They will also feel aggrieved that Cyprus has been the only country to have their accounts raided .The EU could have given Cyprus the full amount and imposed stricter and longer austerity measures ,even put one of their own in power as they did with Greece(i think it was Greece) Demanding that joe public stump up their savings to bail out incompetent bankers is a not on ,no matter how it is dressed up .

Well yes but if there was another way to fund their part of the bailout then they would have taken that. I agree that the EU probably could, maybe should, have given the entire bailout but that would have had the effect of lumbering them with massive debt that greatly exceeded their GDP - which itself it about to be drastically reduced.

There really was no easy solution to this. What I think is especially disingenuous to complain about Germany giving them this debt and to complain that savings are being raided. There was no solution that allowed the EU to stay out of it and for the savings to be protected.

[Sirius]

Originally Posted by martyh

exactly ,and i think we are all agreed that in the near future a further bail out will be required so who's money will they take then .Have they spared the ones with less than 100,000 euros for the next time

All the banks reopen tomorrow apart the bank of Cyprus and the Lalkl so i hope that every single citizen arranges to move their money out of cyprus

---------- Post added at 17:30 ---------- Previous post was at 17:29 ----------




wonder how this will affect that, after all raiding peoples accounts will not popular there anymore than it is anywhere else

There will be a run on the banks as soon as they open.

Originally Posted by martyh

wonder how this will affect that, after all raiding peoples accounts will not be popular there anymore than it is anywhere else

It won't be unpopular there. What is unpopular is why they're bailing out countries and also being abused by the recipients of the bailout. They're not happy with their money being sent to all these countries. I dare say a lot of Germans would rather they didn't have the bailout at all.

[Osem]

Of course some would say that the Germans have very much enjoyed benefiting from Euro membership and don't much like the flip side of the coin.

As predicted, now they know they can get away with it, they are prepared to do it again:

http://www.telegraph.co.uk/finance/f...one-chief.html

Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe's single currency by propping up failing banks, a senior eurozone official has announced.

The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.

The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.

[Qtx]

Originally Posted by Chris

As predicted, now they know they can get away with it, they are prepared to do it again:

http://www.telegraph.co.uk/finance/f...one-chief.html

Was obvious once done once they would think about it again but....surely saying this publicly means it will just speed up the demise of the euro currency as everyone takes their money out of the banks here and moves under the bed or other non-eu countries.

All is not as it seems...

Maybe now would be a good time to invest in Mattress and Fire Safe companies?

Originally Posted by Osem

Of course some would say that the Germans have very much enjoyed benefiting from Euro membership and don't much like the flip side of the coin.

Yes. Countries are not always great at looking inwards. Again trying tell some British people that Foreign aid isn't that bad when you consider we're a society that has benefited from the exploitation of inequality. That said Germany didn't solely profit from the Eurozone, they also had an industrious workforce and didn't incur large debts whilst their economy was booming. They managed themselves well. They're now paying for both faults in the Eurozone but also Governments who funded services they could ill afford and risky economic policy.

[Sirius]

Originally Posted by Chris

As predicted, now they know they can get away with it, they are prepared to do it again:

http://www.telegraph.co.uk/finance/f...one-chief.html

So that was there master plan all the time. Now i see why they bullied Cyprus so hard. Germany must feel really proud of themselves tonight.

Originally Posted by heero_yuy

The mattress is looking increasingly safe now that they've got the bit between their teeth.

never a mattress expert when you need one