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I don't think you are wrong for suggesting this, however, a great chunk of that money that they plan to take belongs to foreign investors and individuals. Is it fair that they pay for the down payment?
If they are using Cyprus's lax banking laws to launder money and evade taxes why not?
Sure, if you make a bad investment......but they aren't losing it in the market, the German government has decided that a percentage of their money is going to help bail out some banks. I just don't understand how some are so nonchalant regarding the fact that the government is attempting to seize money from banks, to help bail out banks. Most of the money it will acquire is not from Cypriots at all, it's from non-EU persons and corporations. I am not here screaming, "It's not fair", but rather, they don't care who pays, as long as someone pays for the ever-failing Euro. It doesn't matter if you are a part if it or not, this should set off alarm bells. My personal opinion is that if Cyprus wants the bailout, then Cypriots have to pay. Tell me this, why are British servicemen exempt from this seizure if investing in their banks is a risk?
Wrong. When you deposit money you are merely loaning the banks money. Now of course govt have instituted deposit insurance to cover depositors up to a point, hence the belief deposits are risk free. However if the government is broke I guess they can't offer insurance any longer.
Regardless of who caused the mess, bank accounts should simply be taboo. If the government wants to steal from people, they should raise taxes as usual.
That's what the Germans are demanding Cyprus do they've just decided to tax bank accounts. It's kind of like Obamacare as long as you call it a tax it's legal.
What does it mean to be the new Argentina? It means they would have to devalue their currency and default like Argentina did, neither has happened. In fact unlike their counterparts that didn't make the tough decisions, they are now growing.
Quite a contrast to the stories coming out of Cypress. Actually Estonia, Latvia, and Lithuania are all doing very well after not following the spend, spend, spend model.
What you produced was not a confirmation of your previous post, which claimed that Krugman "predicted bankruptcy for Latvia. [see post #46]" I said he did not and asked you to cite. What you cited was Krugman's blog where he didn't predicted bankruptcy for Latvia but said,
Quote:
We [Latvia] can’t devalue, they say, because the Latvian private sector has a lot of debts in euros, and a devaluation would make it very hard for borrowers to service those debts. As Hugh points out, the proposed alternative — sharp wage cuts, and basically a major domestic deflation — will also make it hard to service those debts. In fact, I’d be a bit more specific than Hugh: other things equal, a nominal devaluation and a real depreciation achieved through deflation should have exactly the same effect on debt service (unless some of the debt is in lats rather than euros, in which case devaluation would do less damage.)
What you produced was not a confirmation of your previous post, which claimed that Krugman "predicted bankruptcy for Latvia. [see post #46]" I said he did not and asked you to cite. What you cited was Krugman's blog where he didn't predicted bankruptcy for Latvia but said, "
If you are down to arguing bankruptcy as opposed to default, I'll let you win that argument.
If you are down to arguing bankruptcy as opposed to default, I'll let you win that argument.
Except that Dr. Krugman wasn't arguing bankruptcy. In fact, he was pointing out their predicament, not advocating specific policy. Reading comprehension counts.
Except that Dr. Krugman wasn't arguing bankruptcy. In fact, he was pointing out their predicament, not advocating specific policy. Reading comprehension counts.
Default/bankruptcy.......Krugman was wrong. Latvia is growing.
That's what the Germans are demanding Cyprus do they've just decided to tax bank accounts. It's kind of like Obamacare as long as you call it a tax it's legal.
No, it is not a regular tax. It's a partial one-time dispossession.
If I were Cyprus I would offer 100 square miles of the island to the Chinese. I bet they would like to own land in the Mediterranean and be willing to pay billions for that because of the strategic value.
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