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3/25/2013
Can a Cyprus visit this city state?
The big banks in Cyprus are in trouble and facing downgrading. And the EU is recommending robbing the depositors to bail out the banks. This is another case of too big to fail and bailing out the criminals and crooks in the banking industry by using the people’s money. Another twist to this whole dirty episode is that the EU is eyeing all the dirty or hot money from Russia and finds it convenient and appropriate to rob the Russians of their illegitimate wealth parked sinfully in this tax haven, a version of Switzerland and Singapore.
There are many similarities in the banking systems of Cyprus and Singapore. Too few but over size banks, financial centres, tax havens due to low corporate tax, rich foreigners parking their money under secrecy laws. But there are also clear differences like our strong corporate governance, our strong control over money laundering, our well managed banks by the best banking professionals money can buy.
And should the bank hit a crisis and needed more cash injection, Cyprus would have to look outwards, to the EU for help, our banks can always look internally instead. The Govt has huge reserves, SWFs have a lot of funds, and there is always the CPF to tap. There would be no need to rob the depositors in case of bank failures.
I think it is unlikely that we will be hit by a Cyprus and have to rob the depositors to bail out the banks. Our banking industry is very well managed and even if it got into trouble, we can rely on our national reserves and the CPF for interim bailout fundings.
Tapping cpf same what like robbing depositors like u said. Our govt will not do that lar. What do u think?
ReplyDeleteI am less sanguine.I remember the day one investment bank here almost went belly up and was saved by merger with a cash rich national saving bank. A strong man just made the decision and implemented straight away.
ReplyDeleteI wonder if the same could be done today should we be hit by another bank crisis?
What do you think?
Few things I want.
ReplyDeleteI want to withdraw all my money at 55 in one shot. I also don't want to increase our population. We should coax our local born to produce more, maybe offer them 6 months maternity leave and cash. Don't care about ageing population. I don't want foreigners who take our PMET jobs, we should protect locals at all cost. Remember they are our children and the govt should take care of them. We should pay our NS boys professional pay, factor in opportunity costs. I want cheap 5 room HDB, whether I am married or not, or earning above income ceiling. Preferably in mature estates. HDB should never be a appreciating asset otherwise how can our future generation afford? It is the govt mistake to let property price runaway. They knew it was coming long ago. And I want free heathcare with NO means test. Rich and poor all pay the same for world class health care.
If our banks get into trouble, e.g next financial crisis, we should look to ASEAN to bail us, if not we can ask our friend China for help. Otherwise, I think it is ok to rob the depositors since they are all rich people who park their funds here. The funds will always be here whether we chase them our or not. If not, like Chin Leng says, we can tap on our huge reserves which will always be huge regardless whether our growth is 1%or 5% or whether ageing population or not. If not, we can tax all our people more to pay for the bank failures.
ReplyDeleteBetter withdraw balance OAs and SAs from the CPF Board and also the bank savings to put in the biscuit tins.
As happened in Crypus, banks withdrawal limits.
I wish to provide additional dimension to this crisis. The is more than a crisis, its ECB conquering Cyprus. Its neo-colonialism and neo-feudalism.
ReplyDeleteIn every banking insolvency, the most senior claims are depositors, followed by bond holders, then by share holders. All deals must wipe out bond holders before they can touch depositor.
In Cyprus case, ECB and European commercial banks ask Cyprus banks to pay 100 cents on a dollar, while wipe out 10% of depositor. WTF is that?
There is no jurisprudence on such deal.
Basically Germany and ECB are testing the will of Cyprus people and whether the elites are corrupt enough. Instead of depositor tax, Cyprus should as European creditor to take a 20% haircut.
Unfortunately, the elites sold the people out. The elites keep parroting and forcing the people to accept depositor tax. The ruling party and opposition party same same. No one speak out.
The world corrupt banking cartel and colonial forces are testing what the people can take. And today, no newspaper in Cyprus run front line to call ECB taking a haircut. No one inform the people.
A intellect class like RB is important. It seek to inform the people.
I hope Cyprus people win this time. Or else, the Cyprus style is going to spread out in the world, placing bond holders above depositors.
The Cypriot need to go up in front of banks and beat up the managers, pasting banners calling for bond holder haircut, will send chills down the spine of aristocracy.
They will save the world.
In this globalize world, elites are increasing not align with people. They are increasingly traitor.
Tapping cpf same what like robbing depositors like u said. Our govt will not do that lar.
ReplyDeleteOur government already did that many times. The last the is CPF funded GIC, bail out Hindu Nazi Olam.
Our CPF all gone.
Today Nazi racist Olam continue to cook its books. It book a large profit last quarter. We are already Dalits. Our monies are used to keep Nazi Hindu look like talent so that they can continue to enslave us.
Hi rb,
ReplyDeleteThe Government would never allow CPF to suffer a loss. That is too transparent and disastrous. The losses would be at the Government level - more opaque that way.
In the event of a collapse of the HDB and private property bubble, local and foreign banks would suffer huge losses. HDB would be hit as well with bad loans. These losses would not be that clear to all to see.
Local banks would be recapitalized to cover the huge bad debts, nationalized in fact. Leaving 1 or 2 local banks. The Lees would prevail while the Wees weep.
Foreign banks would be saddled with billions in bad mortgages financing foreigners in the property bubble. To avoid a disorderly liquidation of the property market, a bad bank would be created to buy up these impaired assets at better that market price (subsidized). This would required a huge capital injection. A birth of new TLC/GLC.
Cypress is different from Singapore. It has no hidden reserves and has to go the IMF and EU for bailout money.
Singapore would never levy a tax on depositors that would undermine its financial centre. It would use its huge hidden reserves under such a worst-case scenario. In the meantime, it is trying very hard to avoid such a scenario.
faber
The Government would never allow CPF to suffer a loss. That is too transparent and disastrous. The losses would be at the Government level - more opaque that way.
ReplyDeleteCPF is already losing $$$, and its being recapitalize by PAP's inflation policy.
CPF are inflated away by paying 2-3% interest on inflation of 5%.
And its now technically defaulting by raising minimum sum and age of withdrawal.
Today, we put 1/3 of income in CPF. We spend 1/3 of income in sustenance. We spend 1/3 of income in obligations such as supporting parents, supporting children.
So in theory, when we are old, we can survive by just CPF monies, because we no longer need to support parents and children. Unfortuntaely, due to rampant inflation, PAP old us we are not enough.
I do not understand how someone can trust the government.
Hi Veritas and faber,
ReplyDeleteThe American subprime housing crisis did not happen overnight. And bet you, the problem was concealed until it cannot be hidden anymore and just exploded.
Every time I recalled what George Yeo said, things are looking too perfect to be real, sends a chill down my spine. What is real and unreal, what is an apple rotten to the core but looking perfect, like plastic?
Dear RB, Marx said before, the elites will keep on exploiting until the day you put a gun on their head.
ReplyDeleteOur KPKB is to inform people to prepare for bigger things.
I hope this time, Cypriot and tie up the CEO of private banks and central banks, strip them and make them parade on the streets. They do not have to kill them. Maybe they can sodomize them publicly. That would send a strong signals of don play play.
When I studied history, a large portion of european elites and intellects hate bankers. There are good reasons.
Sinkies teaching others what to again.
ReplyDeleteLol..........
See what You can do for ourselves.
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteHi veritas,
ReplyDeleteThe issue is not CPF. You should look at the hidden reserves, whatever that is and what is left.
If hidden reserves are nil, CPF would be an empty shell.
CPF savings are insufficient for majority contributors for reasons of low pay, low contributions, low real returns, cut in contributions, high property prices, medisave portions, unemployment/underemployment, high cost of living, lack of social welfare support, etc.
How these hidden reserves are accumulated, used, managed, accounted for, grown or depleted, etc. would come to a head eventually.
faber
In Red Dot we have already been robbed long ago without our knowing it.
ReplyDeleteThe reserves are as good as gone into the hands of a private group of people. Your CPF are as good as confiscated. You are paying a king's ramson for a home, a car if it is a necessity, a stay in hospital when you fall sick, over and above the GST, levies, cream-off and wtf.
The Government sounded so noble by announcing loud and clear that 70% of Singaporeans do not pay taxes. And the daft 60% believe them and are living happily ever after!
This is why I think the PAPig Millionaires will never leave Singapore voluntarily.
ReplyDeleteThey will very quickly lose all their money.
Based on their track record with OUR tax & CPF money.
http://www.thesun.co.uk/sol/homepage/news/4858156/Paradise-cost-Agony-of-expats-caught-up-the-in-Cyprus-crisis.html
Cypriots are seething with rage against the greed, corruption and incompetence that has brought this beautiful holiday island to its knees.
ReplyDeleteCyprus news:
A T-shirt on sale in a tacky seafront shop bore the slogan: “I don’t need sex, the Government f**** me every day.”
Read more: http://www.thesun.co.uk/sol/homepage/news/4858156/Paradise-cost-Agony-of-expats-caught-up-the-in-Cyprus-crisis.html#ixzz2OX11zvhA
Cypriots are seething with rage against the greed, corruption and incompetence that has brought this beautiful holiday island to its knees
ReplyDeleteThe media conspiracy is so powerful that Cypriots do not know who screwed them and the real solution out.
The real way is not to raid the deposit but to default on bond holders.
We bloggers need to work harder to inform our citizens. Our Singaporean brothers need to spread the truth. Our elites need to fight social justice.
The trouble with this world is that there are so many greedy pigs in power, with so many greedy piglets controlling the propaganda machines, with so many greedy lapdogs singing the 'greed is good' song, it is well nigh impossible to go against this tide.
ReplyDeleteWhat is happening in Cyprus is just a test run of what the banksters are about to unlease on the whole world.
How many EU countries deeply in debt do you think can really repay those debts without resorting to the same kind of dirty tricks that only the banksters are capable of coming up with?
I like the T shirt, 'We don't need sex. The Govt is screwing me everyday.'
ReplyDeleteVery few people read history how Germany was united. The Germany today is few hundreds princely states 150 years ago.
ReplyDeleteThen Prussia think of a brilliant idea call Zollverin. In short, that means "free trade zone". In a couple of decades, Germany which is never united got united or "conquered" by Prussia.
Few people know the real mechanism of free trade. The elite knew the implications. I may blog more about it later. Its a very serious economics topic.
To put it simple, if you have free trade, you will get eaten up by core states. Germany is able to conquer Europe without the use of Wehrmacht.
This is the first part of Germany's conquest. The reason why local elites capitulate rather than fight is another big topic.
Fucking PAP, go everywhere and sign FTA. KNN.
ReplyDeleteAnd fucking A level econs text book, and those fucking econs faculties in our university, I dono WTF are they teaching...
It was very much later when I read the ORIGINALS of great masters that I knew I was being duped all along by my teachers.
There is a conspiracy to prevent people from getting too clever.
Maybe that is why spore banks biggest owner wants to staff the banks with ahnehs on the surface. One day, when the banks fail, they can blame it all on those ahnehs and locked them up while they secretly take the money and own it privately. Is that the game plan.
ReplyDeleteWhen the banks open in Cyprus a bank run is a certainty. Some of the banks will simply collapse.
ReplyDeleteCPF already confiscated long ago.
ReplyDelete