Robert Ariail by Robert Ariail

Robert Ariail

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  1. mickey1339

    mickey1339 GoComics PRO Member said, over 1 year ago

    One of the EU bankers said he thought Cyprus would be the model they use going forward for countries that need a bailout. Whenever I see older people lined up outside of banks scared they are going to lose their life savings I have a hard time believing their austerity measures make sense.

  2. ConserveGov

    ConserveGov said, over 1 year ago

    Now Jim Bob and Old Elmer look like the wise ones when they refused to keep money in banks.

    “I don’t trust them banks or the gov’ment that controls them” might prove to be words of wisdom.

  3. Uncle Joe

    Uncle Joe GoComics PRO Member said, over 1 year ago

    @mickey1339

    Cyprus’ banks got in trouble because they served as a tax haven for foreigners. Only large depositors are taking a haircut. We need the same controls on other off-shore tax havens like the Caymans.

    The stories I’ve seen make it sound like there are more foreign reporters around the banks than elderly depositors.

  4. Michael wme

    Michael wme said, over 1 year ago

    @Uncle Joe

    National economies ONLY get into trouble when the banks get into trouble. Banks ONLY get into trouble when they loan money to people who cannot pay it back.


    All bank deposits MUST be loaned out. Good bankers aren’t quite perfect, but 99.9% of their loans get repaid in full. Bad bankers (long list, including all the PIIGS, the US, Cyprus and many more) loan to people who default on most of their loans. When borrowers default, the banks don’t have enough money to repay depositors, and those deposits become worth less than full value, or (in the worst case) deposits become worthless (unless the Central Bank covers the deposits). Without the money in those deposits, prices and incomes fall, and more loans go bad, loans made by good bankers to people who could have repaid had there not been a crisis.


    Cyprus got deposits in Euros from Cypriots and various Mafia types. The European Central Bank won’t bail them out, so the money MUST come from somewhere. Mafia being Mafia, the Cyprus government was going to get most of their shortfall from small depositors, but those small depositors have votes, so that didn’t work out. Taking all the shortfall from the Mafia deposits also causes problems, but that’s the current proposal.


    At least when the Mafia puts a horse’s head in their bed, being Europeans, they’ll know what to do with it.

  5. DGF999

    DGF999 said, over 1 year ago

    Yeah, you’d think that Europeans would finally learn that socialism/communism is a fail, but I guess they enjoys it too much.

  6. ARodney

    ARodney said, over 1 year ago

    Actually, conservative or “socialistic” depends quite a bit. The austerity being imposed by conservative governments in England and Germany is failing miserably. Iceland and Sweden, and even the United States (where the GOP talks about austerity but does little in reality) are doing pretty well.

  7. wbr

    wbr said, over 1 year ago

    yes capitalism like freddie and fannie and cria [clinton] laid USA low

  8. Respectful Troll

    Respectful Troll said, over 1 year ago

    Apparently, the nation of Cyprus has a similar problem to the Caribbean tax shelters…
    It has no arable land to suffice even its own needs, the only mineral resources they have are recent discoveries of natural gas deposits in their waters, but no independent way to exploit those resources, and banking and tourism has been their major source of income for decades. One wonders what the Cayman’s would do if suddenly caught up in some financial hardship.
    In a world where money is the only thing that is important, a nation that suddenly finds itself needing food and water suffers greatly.
    Maybe they need the EU to put a “city manager” in charge the way the Gov of Michigan has done with Detroit and a number of other Michigan cities. Your votes don’t count, but they might be able to fix your money problem. Especially if it doesn’t matter what’s left when they’re done.
    Respectfully,
    C.

  9. Uncle Joe

    Uncle Joe GoComics PRO Member said, over 1 year ago

    @wbr

    “yes capitalism like freddie and fannie and cria [clinton] laid USA low”

    Freddie Mac was a very minor player in the bad mortgage crisis. Private banks made the overwhelming majority of those bad subprime loans. They knew the loans were risky, but didn’t care because they could sell the loans off to big Wall Street banks who packaged them as “Mortgage Backed Securities” & suckered investors into buying them. None of the private players cared. They knew their bonuses were non-refundable.

    I have no idea what “cria” is, but Clinton made a mistake in signing off on repeal of Glass-Steagal. He & other Democrats seem to have realized this was a mistake. Republicans are still championing extensive bank deregulation.

  10. Uncle Joe

    Uncle Joe GoComics PRO Member said, over 1 year ago

    @Respectful Troll

    “One wonders what the Cayman’s would do if suddenly caught up in some financial hardship.”

    Under current practice, it’s not “if”, it’s when.

  11. Uncle Joe

    Uncle Joe GoComics PRO Member said, over 1 year ago

    @Michael wme

    At least half the Cyprus deposits are Russian…. possibly organized crime. Whoever they are, they aren’t EU. I suspect this is a big part of the reason why the EU is willing to let the big depositors to take a haircut.

  12. Uncle Joe

    Uncle Joe GoComics PRO Member said, over 1 year ago

    @ScottPM

    “National economies get into trouble when the government spends more than it takes in.”

    Nonsense. There is such a thing as sustainable debt for nations, the same way there is for businesses & households. Spain had a lower government deficit than Germany before the Euro-crisis, do a frugal government doesn’t protect from out of control private lending.

    For that matter, the U.S. government had very deficits before 1930.

  13. wbr

    wbr said, over 1 year ago

    cria is community reinvestment act which told banks they needed to push home mortages the two accounted for the vast amount of sub prime mortages

  14. mikefive

    mikefive said, over 1 year ago

    @ARodney

    Iceland is a small player on the world financial stage. Further, Iceland let their overextended banks go bankrupt instead of bailing them out like the U. S. did and let the value of the krona collapse. I’m not quite sure what the effect would have been if U. S. banks were allowed to go bankrupt, but I’m pretty sure that letting the de facto world currency collapse would not have been pretty on the world financial markets.

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