Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-19-2013, 06:22 PM   #81
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
Too late. The damage has been done. Confidence in the financial system has taken a significant hit. As a European, I feel embarrassed that this sad episode has happened.
Quote:
Originally Posted by brett View Post
It did NOT happen. The Government of Cyprus voted it down.

.
__________________

__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-19-2013, 07:26 PM   #82
Full time employment: Posting here.
 
Join Date: Mar 2011
Posts: 534
Yeah, its hard to imagine there won't be a run on the banks anyway. Or at least a 'bank jog'.
__________________

__________________
jon-nyc is offline   Reply With Quote
Old 03-20-2013, 04:56 PM   #83
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
The MSM is pumping out propaganda at a furious rate.
"A blip on the Market"
"A non-event"

The Wednesday Bernanke interview neatly dodged any questions about interconnectivity of Cyprus and US Banks, as if it were not an issue. Onward and upward!

Cyprus (insanely IMO) is keeping banks closed until next Tuesday, March 26.

The EU is currently acting as if Cyprus and the Euro were in two different worlds, while wealthy Russians have initiated a political putsch. Not one single plan on the table that shows any hope, except perhaps, stretching out the debt for 100+ years.

The Market has entered a serendipitous stage of excitement, on discovering a "bubble" that defies rational thought.

And all the while, the CYA comments by the Gurus of finance... "This may be the beginning of the "correction" that will allow the market to go to 20,000...

Let us hope that all the good wishes and the extension of the US debt will keep it all up in the air until somehow, some way, the economy recovers and everyone goes back to work at wages that will restore the economy back to the American Dream.

In the meantime, the best approach is to....
__________________
Today is the oldest you've ever been, and the youngest you'll ever be again. - Eleanor Roosevelt
imoldernu is offline   Reply With Quote
Old 03-20-2013, 05:20 PM   #84
Full time employment: Posting here.
EvrClrx311's Avatar
 
Join Date: Feb 2012
Posts: 524
I think its safe to say this one case where any news is NOT good news... how many people here can't wait to invest with Cypriot banks if/when they finally open next week!

For the next 50 years, I doubt they'll have many new account applicants.
__________________
EvrClrx311 is offline   Reply With Quote
Old 03-20-2013, 06:58 PM   #85
Full time employment: Posting here.
HawkeyeNFO's Avatar
 
Join Date: Jan 2010
Location: Inside the Beltway
Posts: 573
I think Stanley is correct. Given the abysmal interest rate for a prolonged period now, the Fed has ensured that wealth in the form of savings (versus the actual inflation rate) is leaving the accounts of those who put money in the US banks. With continued QE3 going on, money is cheap. As always, keeping money in the savings account is a losing proposition when taking inflation into account. Arguably, the losses in purchasing power of US account holders might actually be greater over time than those that would occur in the Cyprus "tax" scheme.
__________________
HawkeyeNFO is offline   Reply With Quote
Old 03-20-2013, 07:01 PM   #86
Recycles dryer sheets
Stanley's Avatar
 
Join Date: Jan 2013
Posts: 194
Why the fuss? As a letter writer in today's WSJ pointed out, in the US the Fed has followed a low interest rate policy that has effectively confiscated the interest earnings of savers for over four years and given the money to the banks. As I understand it we can expect this to continue for about two more years. At least the Cyprus deal is up-front about what is going on.
__________________
Stanley is offline   Reply With Quote
Old 03-20-2013, 07:23 PM   #87
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Uh, Cyprus has about half the GDP of Tulsa, OK. This is a pimple bursting.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 03-20-2013, 08:00 PM   #88
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,079
Quote:
Originally Posted by Stanley View Post
Why the fuss? As a letter writer in today's WSJ pointed out, in the US the Fed has followed a low interest rate policy that has effectively confiscated the interest earnings of savers for over four years and given the money to the banks. As I understand it we can expect this to continue for about two more years. At least the Cyprus deal is up-front about what is going on.
At least with the low interest policy, savers have had the option of withdrawing their money and seeking alternative investments. The proposed Cypriot cash-grab would not have allowed that option.
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton is offline   Reply With Quote
Old 03-20-2013, 08:09 PM   #89
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
Watch "Bitcoin" in the coming days.
__________________
Today is the oldest you've ever been, and the youngest you'll ever be again. - Eleanor Roosevelt
imoldernu is offline   Reply With Quote
Old 03-21-2013, 08:15 AM   #90
Full time employment: Posting here.
dtbach's Avatar
 
Join Date: Apr 2011
Location: Madison
Posts: 755
The news looks even worse this morning.

https://news.fidelity.com/news/news....sting.RT&IMG=Y
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
dtbach is offline   Reply With Quote
Old 03-21-2013, 09:28 AM   #91
Full time employment: Posting here.
Tyro's Avatar
 
Join Date: Aug 2012
Location: Upstate
Posts: 699
Quote:
Originally Posted by dtbach View Post
The news looks even worse this morning.

https://news.fidelity.com/news/news....sting.RT&IMG=Y
This morning there is also some talk about the Greek Church helping bail out Cyprus. Cyprus Church Pledges Bailout Funds - ABC News

Tyro
__________________
Yeah well, that's just, ya know, like, your opinion, man. ~ The Dude
Tyro is offline   Reply With Quote
Old 03-21-2013, 10:22 AM   #92
Recycles dryer sheets
Stanley's Avatar
 
Join Date: Jan 2013
Posts: 194
Quote:
Originally Posted by Milton View Post
At least with the low interest policy, savers have had the option of withdrawing their money and seeking alternative investments. The proposed Cypriot cash-grab would not have allowed that option.
Good Point!
__________________
Stanley is offline   Reply With Quote
Old 03-22-2013, 04:55 PM   #93
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 3,244
Quote:
Originally Posted by HawkeyeNFO View Post
I think Stanley is correct. Given the abysmal interest rate for a prolonged period now, the Fed has ensured that wealth in the form of savings (versus the actual inflation rate) is leaving the accounts of those who put money in the US banks. With continued QE3 going on, money is cheap. As always, keeping money in the savings account is a losing proposition when taking inflation into account. Arguably, the losses in purchasing power of US account holders might actually be greater over time than those that would occur in the Cyprus "tax" scheme.
This was the point I was making earlier. At least a "one time hit" can be a "knowable". Future US inflation is not known, but if it is like the mid 70's to mid 80's, it will make the Cypriot Bank "tax" (or confiscation) seem like a non-event - which I guess it is. Maybe we should just all band together and tell our Congress Person "we don't want no stinkin' inflation." Yeah, that would probably do it.

I know we've discussed it before, but for those of us who believe inflation will soon(er or later) rage, anyone have suggestions? Bonds don't seem too good an idea. The stock market usually does well in low to moderate inflation, but rarely in the kind of inflation we had in the 70s/80s. What? Gold? Silver? MREs, guns & ammo?? It's a serious question even though I'm not expressing it seriously (in some folks eyes, anyway). I know some folks did well during the period mentioned. Either they were very, very good at picking a few winning stocks, or they were bloody lucky. Maybe we just have to wait until the belt tightening begins to (eventually) curb the coming inflation. I recall bonds and CDs at (what?) 16%? Sounds great right now, but then again, if inflation is 15%, not so much. YMMV
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 03-22-2013, 05:15 PM   #94
Thinks s/he gets paid by the post
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 3,244
Quote:
Originally Posted by brewer12345 View Post
Uh, Cyprus has about half the GDP of Tulsa, OK. This is a pimple bursting.
If we were "jumping" a stalled car and the hydrogen/oxygen mixture under the hood were 2 to 1, we wouldn't call it a small spark when the last connection was made incorrectly. (Maybe our survivors would, heh, heh) We know and understand the stoichiometry of the hydrogen/oxygen reaction. We do not know the "stoichiometry" of world economics. We have lots of theory, but the system is far too complicated to say we know what might happen based on some more-or-less random (and otherwise "pimple-bursting") event. Not being argumentative (at least not my intent). But look at the significant effects we are seeing from the (now) non-event.

By the way brewer, I'm fairly certain you are correct - and I sincerely hope that you are correct!! YMMV
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 03-22-2013, 05:19 PM   #95
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,451
Quote:
Originally Posted by Chuckanut View Post
The long term solution is to let the Cyprus banks go bankrupt so that everybody learns a lesson.
Unfortunately there are few hitches with the simple and obvious solution.
The banks are a big business in Cyprus and generate a large chunk of their GDP and employ lots of folks.

But more importantly if they let the biggest banks go under. It would require wiping out up to 30% of the value of any deposits over 100,000 euros.

Now this wouldn't be such a bad idea. Except that for the most part these deposits are held by Russian "industrialist" who are, how do we say it, well connected in the Russian government.

The Russian government has a 2.5 billion loan to the Cyrus government which is due to be rolled over. On a per capita basis this is roughly equivalent a $1 trillion in the US. Evidently screwing the Russian industrialist would have resulted in no loan roll over, making the Cyprus government situation even worse..

Not to mention, Russian "industrialist" have well deserved reputation for being rather unpleasant to those person who cost them money. The Cyprus people may toss out politicians who take their deposits, but most of them won't kill your family.
__________________
clifp is offline   Reply With Quote
Old 03-22-2013, 05:21 PM   #96
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by Koolau View Post
But look at the significant effects we are seeing from the (now) non-event.
What significant effects? The equity market rising? Some Russian gangsters squealing because they might lose some of their dirty money? The You're-a-peeins squabbling over who pays the tab for an evening out? Please.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 03-22-2013, 07:41 PM   #97
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
Today;
As Cyprus Implodes, Bitcoin Interest Explodes | Fox Business
__________________
Today is the oldest you've ever been, and the youngest you'll ever be again. - Eleanor Roosevelt
imoldernu is offline   Reply With Quote
Old 03-22-2013, 07:57 PM   #98
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,914
I wonder what this will effect the willingness of rich Americans to deposit money in off-shore banks in small countries?
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 03-22-2013, 08:09 PM   #99
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by Brat View Post
I wonder what this will effect the willingness of rich Americans to deposit money in off-shore banks in small countries?
I rather doubt that there would be too many wealthy Americans using bank accounts in a place as small and flaky as Cyprus. Switzerland, Luxemburg, etc. would be more like it.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 03-22-2013, 08:17 PM   #100
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 2,728
Quote:
Originally Posted by Sparkie67 View Post
Meanwhile here in Oz, as of 31 May this year, any bank account that has not had a deposit or withdrawal into or from it in the previous 3 years will be taxed at 100% by the government. All banks will be required by law to deliver the money to the tax office.

Apparently you can apply to have it returned, but really.
It is that way in most states in the US, the state has an inactive account law, that means you have to notify the bank that you know about the account. It is possible to get the money back less a handling fee also. In the US lots of states have unclaimed property web sites. Besides actual bank accounts, this includes uncashed cashiers checks, life insurance where the policy holder hits 100. Etc, so it is not new.
__________________

__________________
meierlde is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 04:37 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.