So this Cypriot bank levy thing is
2013-03-17 22:41:12.26466+00 by Dan Lyke 5 comments
So this Cypriot bank levy thing is essentially a way to simulate local inflation, devaluing only Cypress Euros?
2013-03-17 22:41:12.26466+00 by Dan Lyke 5 comments
So this Cypriot bank levy thing is essentially a way to simulate local inflation, devaluing only Cypress Euros?
[ related topics: Economics ]
comments in descending chronological order (reverse):
#Comment Re: made: 2013-03-18 23:50:17.21987+00 by: TheSHAD0W
It's going to cause a number of people to lose confidence in all EU banks. I'm expecting precious metal prices to rise significantly over the next few weeks.
#Comment Re: made: 2013-03-18 22:17:07.388506+00 by: Dan Lyke
Right. If you've got it stashed under your mattress (unlikely), or invested in places other than Cypress (more likely), it doesn't devalue.W
And the more you have in those Cypress the more it devalues (at least at that 100k Euro boundary), which makes it an interesting kind of deflation, but...
Weirdly, it sounds like there were a whole bunch of foreign investors, which makes bank malfeasance that much more probable.
It'll be interesting to see how people deal with this, whether it reduces confidence in the Euro generally, or just in those banks.
#Comment Re: made: 2013-03-18 19:12:55.89487+00 by: meuon
Only if you deposit a lot of it.. Right?
#Comment Re: made: 2013-03-18 01:09:46.726277+00 by: Dan Lyke
No, I meant "simulate", as in a Euro is still a Euro, but if it's a Cypriot Euro its suddenly worth less. Kinda.
#Comment Re: made: 2013-03-17 23:14:16.406073+00 by: meuon
"stimulate" I think is what you meant, and I had the same thought. The side effect of this tax is in fact it's primary goal: get some cash flowing in society.