Political & Elections

catahoula · Guru

RE: Off Shoring MONEY

catahoula · Guru

That it costs more to borrow money when you smell bad is a given, lp. That only with an institutional failure can a particular interest rate be pointed at as an after-the-fact tell, is another.

Since the same government that was guaranteeing these deposits was either too dim or too venal to smell what everyone else should have, where do you suggest they turn for tighter regulation and oversight.... the Germans?

longprime · Guru

What Cyprus Banks were offering for deposit money is not reasonable. Since they take Euros and US$ at rates far in excess what you can get on the open market. The higher rates offered must mean that there is considerable risk: They have to lend money at least 300 basis to their borrowing cost which also means that the borrowers are risky and could not get loans elsewhere.

catahoula · Guru

Being I was more of a donut guy at the time, it never came up.

Rate was reasonable for the time and environment, just as I'd guess what the Cyprus banks were offering seemed to be.

longprime · Guru

So did you get a toaster?

catahoula · Guru

Assuming I was a Cyprus citizen, I'd know enough now to stick it under a rock, longprime. Now, I'd know my president saying "your savings won't be taxed" was about as truthful as "we don't have a long-term debt problem".

Speaking of high rates, I once had a CD making somewhere north of 15% at University S&L, right here in Houston. Great stuff, at least until Congress decided it was in the national interest to make the terms of our agreement negotiable after the fact. That I walked away with the principle and accrued interest didn't keep me from catching a clue as to what's possible, be it in regard to deposits, CD's, pensions, or promises.

catahoula · Guru

I think it's 'Cypriots' but I'm a creative speller.

It's an ill wind that blows no good but I doubt that the Russians being trimmed is worth the collateral damage. There's a tendency for politicians to excuse their own bad behavior by citing that of others, even if it ocurred an ocean away, and there's an enourmous amount of money tied up in 401K's. Maybe not enough to cover what they've already spent but more than enough to keep the party going.

Has anybody noticed you just about can't buy ammo anymore? confuse

Razorsharp · Guru

Putin supposedly has become a billionaire. Of course this is all on his government salary? I don't think so. I bet he has a lot of money outside of Russia. Hopefully he has a lot in Cyprus and it gets taken from him.

longprime · Guru

would you deposit your savings/retirement, Today, in a bank that gives you 5% CD in the 1st year and 8% CD for 18 months.

How about, if you get a toaster and a souvenier coffee cup?

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Statistics

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The BEST interest rates on deposits in Cyprus :

DEPOSIT INTEREST RATE IN EUR and USD FOR INDIVIDUAL and CORPORATE CUSTOMERS - NON-RESIDENTS OF CYPRUS

СУММА, EUR/USD	PERIOD and INTEREST RATE, %, annual
СУММА, EUR/USD	31-183 days	184-366 days	367-545 days
AMOUNT 1'000	Interest is paid monthly, possibility to replenish deposit account, minimum amount per 1 replenishment — 500 EUR / USD		5,5 % (1 year only)
От 1'000 USD	3,6	7	8
От 1'000 EUR	3,3	6,5	7
Более 150'000	Deposit for 5 years — 11 % per annum, monthly interest payment

Interest rate will not be changed during period of deposit agreement.

NEW DEPOSIT INTEREST RATE IN EUR and USD FOR INDIVIDUAL and CORPORATE CUSTOMERS - RESIDENTS OF CYPRUS
monthly interest payment

AMOUNT,EUR/USD	PERIOD and INTEREST RATE, %, annual
AMOUNT,EUR/USD	31-183 days	184-366 days	367-545 days
Мин.сумма 1'000	Interest is paid monthly, possibility to replenish deposit account, minimum amount per 1 replenishment — 500 EUR / USD		4% (1 year only)
5'000-50'000	3,2	4,75	5,25
50'001-150'000	3,5	5	5,5
150'001 and more	3,8	5,25	5,5
Более 150'000	Deposit for 5 years — 7% per annum, monthly interest payment

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http://cyprusbank.org.ua/index/0-8

{don't know how long this url will last (3/19/2013), so I copied & pasted}

-- Edited by longprime on Tuesday 19th of March 2013 08:29:57 AM

longprime · Guru

"Deposit Tax", Cost of keeping the Cypriot Banks solvent.

We nationals, in the USA, pay a deposit tax inorder to keep our banks and deposits ($100,000 nominally, $250,000 under TARP) safe- It's called FDIC.

http://www.fdic.gov/deposit/insurance/assessments/proposed.html

If I remember my readings of the Great Recession, banks are paying about 1% in FDIC insurance fees, on our deposits. Of course that fee is passed on to the depositors in the form of lowered interest paid to the depositor and higher service fees. http://www.fdic.gov/deposit/insurance/assessments/rate_cases.html

busdriver11 · Guru

Yep, except it looks like they're sticking it to the Cyprusians too (that how you spell it)?

I heard that Putin has a ton of money in their banks, plus some of the Russian mafia. Don't know how true that is, but it seems that it could get pretty ugly parting them from their cash...

Razorsharp · Guru

It looks like the Germans are trying to stick it to the Russian oligarchs and money launderers. A talking head on Tv said that the Cyprus banking system is eight times the size of their GDP whereas the US's banking system is only one times the size of the US GDP.

longprime · Guru

Cyprus Banking System is being hit.

Low taxation, low regulation, low oversight in their banking system allowed the banks to become too big in relation to their economy And allowed relatively few entities to essentially control the banks. This concentration of debt and deposits allows a few debt whales or deposit whales to completely freeze the system.

New concerns on Cayman Isles and The Bahamas banks. Small US banks with concentrations of either whale depositors or debtors are going to be under the microscope. Do you know where your money is?