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We're helping them and meeting our obligations. In what way are we punishing them? Yeah, it's not nice to lose 6.75% of what you have in savings (the 9.9% is on
by st0p 14y ago
We're helping them and meeting our obligations. In what way are we punishing them? Yeah, it's not nice to lose 6.75% of what you have in savings (the 9.9% is only for those who have more than 100.000 euro in their bank account), but the alternative would be much worse for the Cyprians.
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And yeah, this is a very crude way to raise the money. Given more time, a better way is probably possible. But I think time is at a premium now.
- omgyeah 14y agoPlease, you are not helping anybody. Nobody has ever paid back a loan with a bigger loan. It's just an excuse to take your money too and blame someone else for doing so.
- st0p 14y agoSo what do you propose? We sit back and do nothing?
- srid68 14y agoThey could have made the bank bond holders (rich foreign banks) take losses without affecting the normal depositors. How can you think getting a bigger loan to pay current loan is a good strategy. It will work only if the economy improves. If the economy tanks, it is not going to work. It is only going to increase the losses for the lenders ultimately.
- seanmcdirmid 14y agoThere were no foreign rich bond holders to punish. Cyprus took more money in then it could possibly ever use (as haven like Iceland), and then bought Greek bonds with it. The only creditors here are depositors. So...
- wintersFright 14y agothe lenders are - ultimately - the depositors.
- wintersFright 14y agothe lenders are - ultimately - the depositors.
- omgyeah 14y agoI don't think that an actual once-and-for-all solution does exist. People much greater than my humble me couldn't provide a non-temporary solution. And I must admit that I don't carry the most temperate mind around. At theoretical level, the only solution that is intriguing me for many years now is a society's hard reset via global bank run. Rebuild everything from the ashes and maybe learn from the past mistakes this time. Replace money with something else. Maybe something of non-long-term-accumulative nature. But also, on the same time, find a fair way to compensate for the fruits of one's excessive labor. Not the smoothest thing to do. The inconvenience of millions will be the salvation of billions. Fair or not? The real problem is that human's greed-driven ingenuity will abuse, overcome and nullify every kind of systemic fairness. We live in an infinite loop of imbalance. Unless the next asteroid is big enough and hits the target before we set our GPS navigators to the deep space :)
- ameister14 14y agoYou're forcing them to redistribute wealth from the individual to the banks. If you lose sight of the individual in all this, then I suppose it isn't a punishment. But I don't think it's appropriate to do that.