Topic: what happen in cyprus that led to their troubles? (Read 914 times)
thanks for the info guys ( gals). i have learned alot thr this forum. its easy to learn here, 5 post no trolls, people here actually want to help one another here. it feels like its all comin together, bitcoins brought all the good people together. take care fellas.
Too many people dropping fiat and putting it into Bitcoin.
Sorry, it is not some grand conspiracy theory or overspending like in the USA or complex financial instruments. This was a simple case of lax lending standards and doubling down at the worst time by private companies. While the government is also in debt, this is not the primary problem right now.
The problem was the BANKS lent money too easily. To make things worse they bought GREEK government bonds when they where 'cheap'. OOPS. When Greece collapsed, that was it. Now the BANKS not the government does not have enough money to cover deposits. So in effect this is where deposit insurance should come into play. But there is not enough money there because the mistakes were HUGE.
If anything what should happens is all of the banks should be taken over by the government the same way that banks are taken over in the US by the FDIC. The government should make the depositors whole but anyone who OWNED the banks or the banks stocks should be TOTALLY SOL. The banks are bankrupt! If needed, bank assets should be sold off to pay depositors or depositors should now own the banks DEBT FREE and the banks debts (not deposit debts) discharged in bankruptcy.
The problem was the BANKS lent money too easily. To make things worse they bought GREEK government bonds when they where 'cheap'. OOPS. When Greece collapsed, that was it. Now the BANKS not the government does not have enough money to cover deposits. So in effect this is where deposit insurance should come into play. But there is not enough money there because the mistakes were HUGE.
If anything what should happens is all of the banks should be taken over by the government the same way that banks are taken over in the US by the FDIC. The government should make the depositors whole but anyone who OWNED the banks or the banks stocks should be TOTALLY SOL. The banks are bankrupt! If needed, bank assets should be sold off to pay depositors or depositors should now own the banks DEBT FREE and the banks debts (not deposit debts) discharged in bankruptcy.
I thought Michael Lewis' series of articles on the subject was at least informative:
http://longform.org/search?utf8=%E2%9C%93&query=michael+lewis+world+tour
I'm not sure I buy all of it, I'm sceptical of any complete explanation of a complex phenomenon, but the series is a good read in any case.
http://longform.org/search?utf8=%E2%9C%93&query=michael+lewis+world+tour
I'm not sure I buy all of it, I'm sceptical of any complete explanation of a complex phenomenon, but the series is a good read in any case.
what events took place that led up to this bs.
greed and avoidance of personal responsibility at all cost (at its core)... or you can read the articles notbrain put up for a nice story.
what events took place that led up to this bs.
This spells it out pretty well:
1) http://endthelie.com/2013/03/17/the-controlled-demolition-of-cyprus/#axzz2ODTD1S9o
and the follow-up:
2) http://endthelie.com/2013/03/19/ensuring-bad-outcomes-what-cyprus-tells-us-about-the-world/#axzz2ODTD1S9o
what events took place that led up to this bs.
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