Eurozone will collapse...

Me too. Genuinely, I think the only way out for Europe is for it to be demonstrated that the Euro is just a construct, not an inevitable, irreversible process of history. Great, a lot of people had fun with it while the times were good, but now they're not good and the Euro is not fit for the task. It's not sacrosanct, so it should go. Let Cyprus show that dumping the Euro is not the end of the world, then hopefully more will follow.

[Sirius]

Originally Posted by Chris

Me too. Genuinely, I think the only way out for Europe is for it to be demonstrated that the Euro is just a construct, not an inevitable, irreversible process of history. Great, a lot of people had fun with it while the times were good, but now they're not good and the Euro is not fit for the task. It's not sacrosanct, so it should go. Let Cyprus show that dumping the Euro is not the end of the world, then hopefully more will follow.

Thats exactly what i want to see happen.

[Taf]

[img]Download Failed (1)[/img]

[Sirius]

Originally Posted by Taf

Excellent

This could get quite bad for Cyprus. They're still struggling to get a deal done with Russia and all savings may be at risk of being lost on Monday if a deal isn't a reached with either the EU or Russia.

http://www.telegraph.co.uk/finance/d...lout-live.html

The European Central Bank will switch off the cash life support taps for banks in Cyprus wiping out £1.7 billion in British savings after next Monday unless the island signs off on a radical debt-cutting programme with the eurozone and International Monetary Fund.
Unless a deal is in place the euro's central bank will withdraw "emergency liquidity assistance" leading to the immediate collapse of the two largest Cypriot banks and a financial crash in Cyprus.

Cypriot banks are totally reliant on the ECB for funding and have taken over €9.1 billion in an emergency programme to ensure cash does not run out.

[Derek]

[img]Download Failed (1)[/img]

Into a game of chicken now. Will the EU allow its main game to fail?

[Will21st]

Originally Posted by Derek

[img]Download Failed (1)[/img]

Into a game of chicken now. Will the EU allow its main game to fail?

It's probably best for Cyprus if they go bust and start anew.... having said that I think that may be the best option for a good few countries and their people on planet earth.

[Sirius]

Originally Posted by Derek

Into a game of chicken now. Will the EU allow its main game to fail?

Its not a game of chicken, its bullying by the main country's in the Euro-wreck against a small little country. The EU will twist this in such a way that Cyprus will be forced into complying or be forced out. Then if they are forced out they have not set a precedence that shows you can leave of your own accord.

Breaking news at this time on Sky news is that Cyprus have said there will be NO levy on bank accounts in any new deal.

[Qtx]

Everyone involved is holding out as long as possible to get the best political deal they can.

Originally Posted by Sirius

Its not a game of chicken, its bullying by the main country's in the Euro-wreck against a small little country. The EU will twist this in such a way that Cyprus will be forced into complying or be forced out. Then if they are forced out they have not set a precedence that shows you can leave of your own accord.

Cyprus need a bailout. They don't have a automatic right to one. Any deal, from Russia or the EU, will come with conditions attached and they won't be popular either way.

[Osem]

Oh dear, seems like Eurolalaland's streets aren't paved with gold after all.

Let's be real, they were so keen to admit 'members' into their club that they didn't think too hard about whether those members were in a position to meet their obligations and survive the conditions. Now it's become apparent that states like Cyprus can't do so, the gloves are well and truly off. Quelle surprise!

Whatever happens now a nasty taste will linger in the mouths of all those who think they've been sold a pup. I don't see how that can ever translate into the sort of trust and commonality required to make the EU function in the manner the Eurocrats seem hell bent on.

Cyprus needs to be a line in the sand for the EU and the self obssessed, unelected, megalomaniacs who've created this mess.

[Sirius]

Originally Posted by Damien

Cyprus need a bailout. They don't have a automatic right to one. Any deal, from Russia or the EU, will come with conditions attached and they won't be popular either way.

I don't disagree with you on the need for a bailout.

However why should Cyprus be the first country to break the rules on bank deposits, Why have the EU decided to test this scenario on a small country. If they had tried that trick with Italy or Spain you can bet that the brown stuff would have seriously hit the fan. If this money grab from peoples bank accounts had been allowed to progress not a single person in Europe could put there hand on there heart and say my money is 100% safe from a grab by the EU. Rules and laws are being walked all over by the EU over this push for a money grab and i for one don't think they should be allowed to do it.

If they get to do it how long before they deem it necessary AGAIN to dip into personal bank accounts.

[nomadking]

It seems a little unfair, as part of the problem is that the Cypriot Banks lent money to the Greek Government and therefore made losses in the plan to relieve Greek debt. They have already helped prop up the Euro. It is equivalent to the current practice of EU countries(eg UK, Germany) borrowing at lower rates and lending it to other EU countries(eg Greece, Spain, Italy) at those low rates.
Link

And the value of the debts owed by the Greek government was cut in a debt relief exercise undertaken last year. It might have helped Greece, but the Cypriot banks were hit.

[mertle]

Originally Posted by nomadking

It seems a little unfair, as part of the problem is that the Cypriot Banks lent money to the Greek Government and therefore made losses in the plan to relieve Greek debt. They have already helped prop up the Euro. It is equivalent to the current practice of EU countries(eg UK, Germany) borrowing at lower rates and lending it to other EU countries(eg Greece, Spain, Italy) at those low rates.
Link

IMF dont care dont trust her especially now there issue on sakorsky and her. Flat been raided surely she should be suspended from her role IMF.

One big sham the whole thing stinks. Cyprus situation shows there know upper motive to all this.

Originally Posted by heero_yuy

Seems to me that they'll do anything and everything to save their vanity project. If it's savings today that they're contemplating raiding what else have they got in store? Pension funds? A tithe on all EU residents property? If you think out-of-the-box, I'm sure they are, there's any number of funds that could be raided.

It's the same way that they sneak in rules by the backdoor and pump up their own salaries and expenses. The whole EU setup stinks of corruption. A very compelling reason to get out ASAP and take back full control of our destiny and stop paying out £billions for no return.

They are being raided to save their own banks, and therefore maybe their savings anyway. It's a bad decision and it's good they've ditched it and are exploring alternatives but it is a bad decision caused by an impending disaster. The consequences of no action at all could result in depositors losing far more than 10%, their savings could be wiped if the two banks go under.

The way people are portraying this is that Germany wants some money and decided to bully the poor Cypriots out of their hard-earned savings. Cyprus is in serious trouble and the idea from the EU is that they'll bail Cyprus out but effectively wanted depositors to take some of the hit, to write off some of their money instead of more of it. This was a bad idea for all the reasons given (causing a bank-run, setting a dangerous precedent) but it's not really corruption.