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Lessons From Present? (Cyprus)

Sunday, March 17, 2013 - 2:15 PM
Dear Readers,

Often times we've seen posts that discuss the lessons we ought to learn from past.  Far-away past like inflation in the Germany, and somwhat recent past like inflation in the USA.

I'm yet to see any posts about the leassons from the present viz. Cyprus.

Are there any lessons at all?

If there are, is there a lesson such as any account that is under FDIC's umbrella insurance protection is actually vulnerable? Vulnerable to tax by our beloved government in order to reduce the national debt ?? !!

Is there any such lesson that actually the assets that are outside of FDIC's insurance are not vulnerable to such a tax? ... So ... it is possible that a worst-case scenario of a one-time tax on "deposit accounts" will **** the (so called) savers, and spare the traders whose assets are outside of reach of the FDIC?  ;-)

... Just wondering ...

Yours Truly,
- Anonymous

 
8
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
1. Sunday, March 17, 2013 - 8:17 PM
Only in a 'Troll's' mind that situation would occur. Thank's for the tip "Yours truly Anonymous".
2
ShorebreakShorebreak2,599 posts since
Apr 6, 2010
Rep Points: 14,062
2. Monday, March 18, 2013 - 7:26 AM
"Nothing they do surprises me any more."

Yes, even for U.S. banks.  But the probability of that is extremely low.
4
51hh51hh1,475 posts since
Jan 16, 2010
Rep Points: 6,423
3. Monday, March 18, 2013 - 10:21 AM
Dear 51hh,

Agreed ... Low indeed ... But not zero.

Before Cyprus, I suspect such a steep one-time tax had never happened for any bank accounts that use relatively "advanced" currencies such as US/Candian/Australian Dollar, Japanese Yen, Euro, Indian Rupee, Brazilian Real, South African Rand, and Great British Pound.  Now that this has happened, governments across the world have a precedent.

Yours Truly,
- Anonymous
4
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
4. Monday, March 18, 2013 - 7:36 PM
A one-time hit, or ZIRP. Pick your poison.
3
BozoBozo137 posts since
Feb 14, 2011
Rep Points: 937
5. Monday, March 18, 2013 - 8:29 PM
Dear Bozo,

Well ... actually the choices are surely not limited to just these two for us and for the US ...

There are more while we have ZIRP ... Limit the bank/CU accounts and move on to ... Miners / Munis etc. (Do Market Timing)

      http://www.depositaccounts.com/forum/thread/12731-precious-metals-miners.html

      http://www.depositaccounts.com/forum/thread/12981-municipal-bonds.html

And then there is always my favorite choice ... Higher Taxes ... On Income, On Dividends, On Interest, On both Long and Short Terms Capital Gains! 

We - the Americans - specifically the present generation - collectively have amassed huge amount of debt (President Clinton's Surplus to President Obama's massive Debt).  My choice, for sure, is to pay-off every penny within "our" generation, rather than passing on the burden to our future generations.

Yours Truly,
- Anonymous
2
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
6. Tuesday, March 19, 2013 - 9:43 AM
Dear Readers,

The apparent "unfairness" of the precent set in Cyprus is quite shocking.

Ironically in this case the proverbial "under the mattress" has proven to be a much better place to put the money than the bank!  :-)

Yours Truly,
- Anonymous
2
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
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