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Cyprus deal 40% haircut
- Thread starter mastacoli71
- Start date
yes its scary but the insured deposits under 100k are safe (for fear of a total disintegration of public trust in the financial system, and that is the precise reason they altered the whole deal). You can't get your money out for several days/weeks but so what. Same happened on Wall Street same happened in every banking crisis.
Quote from DT-waw:
hftvol, i agree with you.
however, do you think that deposits under 100k EUR can be withdrawn?
there is a limit of 100 eur per day! forget it, man!
and this is exactly what would happen in every other country- during a bank run only about 3-8% of deposits could be taken out in a form of banknotes.
There is hardly even that amount of paper bank notes printed!
Its not a joke, its just that you do not understand a fractional reserve banking system. It works great and has always worked great until a complete breakdown of trust occurs. Even then no money is lost, its just that not every tard who runs to the bank will get their full deposit on the same day. Simple as that. I use the word tard because those are stupid people. If they were smart enough they had been pulling out funds weeks/months before. If they were a little smarter they knew that standing in line of a bank that is shut down will not get you anything.
What really gets me are all those naysayers who can only complain, they don't want communism, they do not want completely unregulated free markets, they do not want the current system. Heck, they do not really know themselves what they want. (not addressing you directly, Mtrader).
What really gets me are all those naysayers who can only complain, they don't want communism, they do not want completely unregulated free markets, they do not want the current system. Heck, they do not really know themselves what they want. (not addressing you directly, Mtrader).
Quote from Mtrader:
This weekend a reporter asked an europarlementarian: is there enough money to pay in case the 100K rule has to be applied?
After repeating the question at least four times the europarlementarian gave up saying "yes" and admitted that there is a political decision but no money in case it would be necessary.
But he added that "later" there will be enough money.
This 100k insurance is a big joke and a big lie. All countries have to size down all their expenses, so there is no money left.
Quote from hftvol:
Its not a joke, its just that you do not understand a fractional reserve banking system. It works great and has always worked great until a complete breakdown of trust occurs. Even then no money is lost, its just that not every tard who runs to the bank will get their full deposit on the same day. Simple as that. I use the word tard because those are stupid people. If they were smart enough they had been pulling out funds weeks/months before. If they were a little smarter they knew that standing in line of a bank that is shut down will not get you anything.
What really gets me are all those naysayers who can only complain, they don't want communism, they do not want completely unregulated free markets, they do not want the current system. Heck, they do not really know themselves what they want. (not addressing you directly, Mtrader).
Just think only a week ago, accounts over 100K were safe as well. Today they are not apparently.
If fractional reserve worked so well, what happened in 2008 when liquidity disappeared? Why did the FED and governments react and why is there unemployment? Didn't they know that "even then no money is lost"? Was it just a case of bigger company tards? Apparently the smarter the people are the easier to predict the future, using that reasoning you must be one of the richest people on earth. You apparently knew all this would happen long enough ahead to withdraw all your money.
The ones in front of the bank are the ordinary people that need food, water, gasoline etc. and don't have wads of cash stored at home. They had total trust in money. Never thought about it being a derivative. They can't live off physical money itself. Having no money and no bread doesn't get you anything either. May as well stand in line.
The breakdown of trust came from the system breaking down, not the other way around. How can the system break down if it is so great? Do we need more tard laws?
Don't confuse him with facts. Even uninsured depositors get their money back in full, so long as they "wait in line a few days". That's how fractional reserve banking "works", after all....