Topic: My bank account's got robbed by European Commission. Over 700k is lost. - page 15. (Read 408494 times)

People in Greece are just lazy, don't want to reform, don't want to work, prefer just getting money for doing nothing from the EU. They are not allowed to work on sunday, that fact perfectly describes Greece. Such legislation cannot work and since people are lazy they don't want to work. They will end in poverty but it's their own fault. Other countries in the world had the same problem but reformed and are on the right track...

Haha, this is completely true. Some people will just never learn. Heaven doesn't exist on earth!

Very nicely explained by you dear.
It would help others to understand by this grocery store example.

Economy is based on trust.
Imagine you run a convenience store and you get credit from lenders.
The lenders see you are successful and make nice profit from selling groceries to customers.
As long as you are on that path they trust you, lend you more, get paid back from you - all is well.

But what happens if your convenience store suddenly needs to deal with more competition (e.g. more people open stores in your street), some suppliers turn you down, some customers prefer to buy elsewhere and so forth?
Then your business is shaky, it's unstable, and there is a lack of trust - would lenders lend you money when you're doing bad? Probably not, or probably they will under very strict conditions.

That is where Greece is now, it has a huge lack of trust, lenders don't want to lend more money to Greece ... so printing Euros is not the only answer because it would only cover the debt for now but the situation won't improve by itself ... the convenience store needs to make a change to put itself on the right path for growth again - and that is where changing the currency would work for Greece, it would put it back on the road for recovery and then printing money would be a temporary solution to pay the debt, afterwards the convenience store would be back in the position where it was initially.

Yes that's why I asked this question. If printing money can make a country rich then all the country will make Billions in few days. A country has to back up the printing of money by equivalent amount of Gold, export income, GDP etc.

And look what happened today:

http://news.sky.com/story/1465497/protester-attacks-draghi-at-news-conference

Yes, this is well known, the other option is to default on the debt in either Argentina or Iceland style ... it would cause lack of trust and would trigger banks collapse and many other horrible things ... but either way default or money-printing is the best solution if it is supplemented by going back to your own currency ... I think the EUR is a great currency allowing travelers to pay with the same coin all over Europe (almost) but it can't come over the expense of people's lives ... people in Greece, Italy, Portugal suffer from it - so the longer you make it linger the more people would suffer.

You know this is bollocks... When a country starts printing money to repay debt *in another currency*, the only thing they will achieve is hyperinflation of their own currency - the value of their currency goes down because nobody is willing to buy it in exchange for the hard currency. Printing money can only sort of work when the debt is in your own currency, because the lenders have to accept the freshly printed money.

Onkel Paul

This is a very ridiculous statement. Quantitative Easing (=Printing Money) does not have to be backed up with the wealth of the country, economy is based on trust, not on wealth and wealth cannot be measured only with resources, it is trust that you need to bring into the equation and as long as Greece remains with the EUR and not with the Drachma it would suffer from lack of trust in the short and the long term.

And this is why i use bitcoin, fuck the banks.

Print money with the old currency.
If Cyprus went back to the Cypriot Pound or Greece went back to the Drachma, it would have had to print lots of this money to get out of debt (the debt in € they have would have been "translated" into their own currencies) - but this way after printing and printing comes the growth and everyone benefits from it.

That is a much healthier solution than simply sticking with the € being unable to do much with it and being unable to repay the debt.

you know adding more toilet papers with the machine that make money, they said that money does not grow on tree, but for banks this isn't true

and that quote is a bit stupid, because you can't just print money out of nothing you need to back your money with the wealth of your country

What do you mean by 'Print Money'?

What was the idea of Cyprus or Greece to stick with the Euro and not go back to its own currency?
Eventually it would happen, it's inevitable, so why they haven't done it 2 years ago and this way they could have saved the falling bank, print money, and go back into growth faster than ever, and even gain more trust by investors than the way it looks so bleak now?!

Why common sense and politicians never coincide?

Of course they do. And simultaneously don't

A typical bank might have $100 billion deposits and $100 billion borrowed from the money market. It has $190 billion in loans and has a reserve ratio of 5%. As long as the loans are not bad, this is called a "healthy" bank even though it is insolvent if all depositors wanted to cash out. But they don't and cannot (if nothing else, because such amount of cash does not exist).

It is only considered a really insolvent bank if the amount of bad loans is higher than the reserve capital. Important to remember is that there is no difference in function between a "healthy" and an "insolvent" bank - both work exactly as well, and neither can ever pay the depositors at the same time.

more than that. Feeling insecure where you should be absolutely be calm about..

to be more clear : no banks have enough fund to pay the deposit ...
that why CDS, CDO and ABS exist.

They are waiting for the great downdraft. Huge sucking sound of fiat going into a black hole vortex. It all starts as alittle deflation here and a tad there. Then it slowly gain momentum as more is printed fueling the great voooosh into the vortex of collapse...

What happened is that:

- A bank is an entity borrowing money from the markets and from depositors, and lending it to businesses etc
- It was believed that some banks were insolvent, ie. could not liquidate enough money from their lending side to cover their borrowing side
- In this case law says that it should at least be tried, and if not enough money is gotten, bank goes belly up and depositors and markets lose a part
- What was done is that it was not even tried, and one part of the bank's creditors (depositors) were just robbed of their money, to ensure that the other part (markets) could be made whole. The debtors were not touched.


It is only a test to check if people have a semblance of financial sanity left, expressed by global indignation and refusal to submit to it even one more time, and BTC price exploding because no one will trust in any bank.

It is like a pink flashing puma-like flying object that explodes in the air and the ripples find their ways to everybody's (who is not smoking a cigar) head, smearing them as if it was bubble gum. If people just shrug, even crazier things will happen next time.

I`m not too savy with my state countries, but where is cyprus located?

If its greece, then yeah their banking system sucks to the point where they owe money to everyone so more likely those funds are gone somewhere with a political explanation.

But, thats a fuck ton of money just gone. If your money isnt protected like that, I might as well keep in cash with me at my house in safe.