tag:blogger.com,1999:blog-5713178645208582139.post4410775112139593164..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Echoes of 1933: the Cyprus HeistDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-5713178645208582139.post-54454538300707581322014-02-07T03:58:58.579-06:002014-02-07T03:58:58.579-06:00First Deposit insurance is a system established to...First Deposit insurance is a system established to protect depositors against the loss of their insured first deposits placed with scheme members in the event the depositors making loss in trades.<br />…………………………<br /><a href="http://firstdepositinsurance.com/" rel="nofollow"> Deposit Insurance Coverage</a><br />Anonymoushttps://www.blogger.com/profile/02625865292912121505noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-1536149842752055022013-03-18T10:45:35.619-05:002013-03-18T10:45:35.619-05:00Apparently the cypriot parliament can amend the ba...Apparently the cypriot parliament can amend the bailout, but the financial contribution of 5.8 bn euros remains.<br />http://www.bbc.co.uk/news/world-europe-21832187Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-51637789370571837402013-03-18T02:51:01.057-05:002013-03-18T02:51:01.057-05:00" It never met the criteria of an optimum cur..." It never met the criteria of an optimum currency area and its monetary policy has effectively been geared toward Germany. Thus, at the advent of the Euro, the ECB policy interest rate was close to what a Taylor rule would predict for Germany, but far too low for the periphery. "---Beckworth.<br /><br />This is an amazing observation. Worse still--how does a regular guy in Europe vote Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-59146751576752159982013-03-17T17:18:09.102-05:002013-03-17T17:18:09.102-05:00CORREX: their firms are "systemically importa...CORREX: their firms are "systemically important"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-10201492029973658712013-03-17T12:40:57.302-05:002013-03-17T12:40:57.302-05:00The real travesty of the financial crisis is the d...The real travesty of the financial crisis is the distributional consequences. Finance executives not prosecuted because their firms are "systematically important" but little guys get reamed.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-22004372192970532172013-03-17T11:16:37.784-05:002013-03-17T11:16:37.784-05:00Frances is correct, but incomplete. In addition to...Frances is correct, but incomplete. In addition to the little guy getting whacked with a deposit haircut (despite "deposit insurance"), it must be noted that the ECB & hedge funds will not have a haircut imposed on their lending to the banks. <br />This will reawaken contagion risk elsewhere in the euro zone. <br />Does anyone recall Creditanstalt? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-63308424741759583572013-03-17T09:17:50.394-05:002013-03-17T09:17:50.394-05:00SoupWaiter
This is factually incorrect. There is ...SoupWaiter<br /><br />This is factually incorrect. There is no floor on the Cypriot deposit levy. It applies to all deposit and current accounts however small the balance. Balances below E100,000 are subject to a 6.75% levy: above that the levy is 9.99%. It is currently unclear whether the 9.99% applies to the whole balance or just to the residual amount above E100,000k. Frances Coppolahttps://www.blogger.com/profile/09399390283774592713noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-83061555509198999482013-03-17T09:06:23.300-05:002013-03-17T09:06:23.300-05:00You should point out that the levy on Cypriot depo...You should point out that the levy on Cypriot deposit starts at accounts of 100,000 euro. It is targetting Russian and British tax evaders. Also, after the two ECB rate rises, they took it down once, the ECB is less active than say, the Australian Central Bank, or Canada or Sweden and no different than the Bank of England.<br /><br />The current problems in the periphery are caused by excessiveSoupWaiterhttps://www.blogger.com/profile/14622991345076902543noreply@blogger.com