alarming levy in Cyprys

[amalan11]

I was very surprised to read today that in the latest Euro zone deal Cyprus has suddenly decreed that all savings that people have in the bank will be subject to a one off levy to help fund a Euro rescue package ,of 9.9% on all money 100,000 euro (A$125,000) or 6.25%  on less .

That seems so unfair ,I really feel sorry for the people it will affect it would be awful..

I wonder if that kind of thing will open the floodgates for other countries to do the same,frightening thought:_|

[the_hawk*]

There will be such a rush to remove funds from banks it may very well send many bankrupt and create even bigger problems.

People in near by countries may see it as a possibility and start a run on their banks.

Such a desperate unthoughtful out plan.

How to make people not want to save or deposit money into banks, one can only share their head at such a plan

[tasfleur]

I agree with that Hawk.  In my opinion, It's outright theft and I could never think of that as a "levy or tax", just theft.

[bella_again]

If they don't watch it their whole banking system will collapse because of all the people withdrawing funds.

I don't know how to view this, on one hand the whole country without income could collapse so everyone would be worse off anyway their money worth nothing or they give to keep the country afloat.  It is a one off levy what if Australia was in this position would we all be prepared to chip in and save the country or would we let it sink?

Personally I think they could have gone about it a different way and introduced a tax at a minimal rate over a few years, people wouldn't have liked it but they wouldn't feel their money is being stolen either. 

[the_hawk*]

Bella if it happened here I would pull the lot and move to a different county where the government  could manage properly.

[bella_again]

Yeah I know Hawk it is kinda rough to do that to people that have saved all their lives.  I don't know much about Cyprus and its economic management.  Was it poor management? corrupt government?

I guess I could go and google but I'd never get anything done lol!!

[katydidthat]

The government here has reduced the income of many of those who were on parenting payment by a minimum of about $160 per fortnight ... not a big difference, is there?  

[the_hawk*]

I think its very similar situation to Greece where they have lived much higher standard then there economy could support and borrowed more than they can pay back.

The US and OZ owe China huge amounts of money that could come back and bite us big time if we continue to let our business move over seas.

we are rapidly becoming a nation of consumers and producing very little, we dig up our resoures and sell it cheap to China, they value add by turning into something useful and we buy it back and then borrow from them so we can live.

I dont know if anyone else can see a problem with this or if its just me thinking too much 

[the_hawk*]

The government here has reduced the income of many of those who were on parenting payment by a minimum of about $160 per fortnight ... not a big difference, is there?  

I think there is a difference between taking someones savings and reducing welfare payments.

But both a sign of poor management and desperation

[katydidthat]

With the first point, both end up with poor people being less well off and able to look after themselves and their families - usually through no fault of their own.  

I agree with the second point, Hawk.  

Meanwhile, most of the rich keep getting richer ...