Cyprus - one-time TAX of 9.9 percent - is this setting US or word-wide a precedent?

[1-ev.com]

Hmm, very interesting... STEALING THE MONEY, calling TAX now...

http://www.nytimes.com/2013/03/17/business/global/facing-bailout-tax-cypriots-try-to-get-cash-out-of-banks.html

I HOPE NOT...

[red-beard]

Unfortunately, it will. The problem is, it will destroy the banking system.

[cashflyer]

No more incentive to save.
Spend it, or hide it.

[red-beard]

Spend it AND hide it.

[Mo_Gearhead]

It will never go this far in the USA. At least not until they confiscate ALL the guns.

When this type shyte starts here - we will begin to assassinate the bass-turds. The political wonks will have to build fortresses that they never leave - but we will find a way and get to them anyway.

Don't worry - be happy!

[BlueSkyJaunte]

Keep an eye out for another ban on the private ownership of gold.

[Cannonball996]

the banking system is much stronger in the US then in cyprus.

[jyl]

Cyprus is a unique situation. The country's banks have deposits vastly greater than what the country's citizens have. That is because Cyprus' banks are primarily used for money laundering and tax evasion by citizens and companies and corrupt govt officials of other countries, especially Russia. Naturally, citizens of other EU countries don't want their taxes and credit to be used to bail out Russian crime bosses etc. Thus the only way a bailout would happen is if it is more of a "bail in", forcing large deposits to help fund the rescue.

If you think that is similar to the situation in other countries, then I guess you can worry.

I think most people wringing their hands about this are not aware of the unique situation in Cyprus.

[1-ev.com]

HERE IS THE MORE NEWS... KingWorldNews

THIS INVOLVED KGB money, so ha-ha-ha to watch this action movie

[matt711]

I bet the fee for conducting a wire transfer out of a Cyprus bank just went up... way up!

[imcarthur]

"It is estimated that about one half to a third of all Cyprus bank deposits are of Russian origin.

The ratings agency Moody's estimates that there is about $31bn (£21bn) of Russian money in Cypriot bank accounts - $12bn from banks and $19bn from businesses and individuals.

Moody's also estimates that about $40bn has been loaned to Russian companies based in Cyprus." Source: BBC

So while Cypriots will get hurt, the Russians will be hurt more. Especially if they do a tiered 'theft'.

Ian

[jyl]

Yup.

Think about it. The country has 1MM population. The country's banks have $160BN in assets. You can see what is wrong.

[scottbombedout]

Originally Posted by jyl

Cyprus is a unique situation. The country's banks have deposits vastly greater than what the country's citizens have. That is because Cyprus' banks are primarily used for money laundering and tax evasion by citizens and companies and corrupt govt officials of other countries, especially Russia. Naturally, citizens of other EU countries don't want their taxes and credit to be used to bail out Russian crime bosses etc. Thus the only way a bailout would happen is if it is more of a "bail in", forcing large deposits to help fund the rescue.

If you think that is similar to the situation in other countries, then I guess you can worry.

I think most people wringing their hands about this are not aware of the unique situation in Cyprus.

Absolutely spot on and if you were a European would you want to bail Russian money launderers and tax evaders out?

[McLovin]

Originally Posted by jyl

Yup.

Think about it. The country has 1MM population. The country's banks have $160BN in assets. You can see what is wrong.

I don't know anything about Cyprus, or it's economy or industries, but it sounds like banking is a big industry there.

Or, I guess I should say was a big industry there.

I can't see how anyone would put significant money from offshore into their banking system ever again, bailout or not. It'll just go to other countries now.

[john70t]

A good place to ask this:Off Topic - Politics and Religion - Pelican Parts Technical BBS

Beware the cesspools...

[aigel]

They were starting at pretty low deposit levels. $20k Euros. I am sure there are a lot of Cypriots that aren't Russians and hold over 20k. After a large outcry, they are now considering a 100k min deposit.

The problem is the lack of faith in the banking system this will cause. No bank in the world can pay out all deposits at one time.

Diversify. And yes, spend some too!

G

[Heel n Toe]

We already got hit up for that 9% here. More, actually.

Remember what happened to your 401K a few years ago?

[tabs]

The problem is that it gives politicians new ideas about how to create a new revenue stream. Further anybody who thinks that it can't happen in America if push comes to shove is naive. Bernanke with QE3 is taxing anybody who holds USD's by printing 1T new USD a year as it is a far more subtle form of consfication by devaluation.

[J P Stein]

Originally Posted by tabs

The problem is that it gives politicians new ideas about how to create a new revenue stream. Further anybody who thinks that it can't happen in America if push comes to shove is naive. Bernanke with QE3 is taxing anybody who holds USD's by printing 1T new USD a year as it is a far more subtle form of consfication by devaluation.

Spot on.

A trial balloon on an untapped "revenue source". If it flies in Cyprus, let's try it in Italy, Spain, Greece, yada...... the USofA is on that list for the "Progressives".

Cyprus is a small country with lotso' Russian mob money, an ideal candidate.

[sc_rufctr]

Originally Posted by tabs

The problem is that it gives politicians new ideas about how to create a new revenue stream. Further anybody who thinks that it can't happen in America if push comes to shove is naive. Bernanke with QE3 is taxing anybody who holds USD's by printing 1T new USD a year as it is a far more subtle form of consfication by devaluation.

We got the carbon tax down here. Inderviduals and business pay for their "carbon" usage. The government spent millions selling us the concept. The fact that it won't actaully do anything about climate change doesn't seem to matter. Most Aussies are not happy about it but like always they pay... Electricity, Gas and at the bowser etc.

The average Aussie family is about $600 a year worse of because off the carbon tax! That may not sound a like a lot but that adds up to billions of extra revenue for the government.

We have an election coming up soonish. Not surprisingly a change of government is predicted.

I don't see any difference to what just happened in Cyprus and our carbon tax.