Cyprus imposes 9.9% tax on bank deposits

[a74henry]

With the Cyprus Government limiting daily withdrawals on their banks, it must be tough on the depositors as the Government prevents a run on the bank.

According to the news, the effect will be mostly felt by the wealthy - British and Russian. It makes me wonder why would these rich tycoons want to put their wealth in Cyprus?

[sgd]

With the Cyprus Government limiting daily withdrawals on their banks, it must be tough on the depositors as the Government prevents a run on the bank.

According to the news, the effect will be mostly felt by the wealthy - British and Russian. It makes me wonder why would these rich tycoons want to put their wealth in Cyprus?

how? maybe they want to get it out but how? The money invest in factory in vehicles how to liquidate? Everybody also trying to liquidate and even if they could the lines are dried up. There's even claims that the russians mafiya have their dirty billions in cyprus and they are stuck not even they can get it out thru the back channels.

One thing I have observed from this debt trouble is that all these small countries have shown to be exceptionally very vulnerable when it comes to money problems.

Outside of EU Singapore is one of the most indebted country in the world. And current PAP government has 2/3 majority in parliament just think what they can do if ever we got ourselves in similar situation.

Could they also tax our deposits?

[AlphaQuant]

Outside of EU Singapore is one of the most indebted country in the world. And current PAP government has 2/3 majority in parliament just think what they can do if ever we got ourselves in similar situation.

Singapore is not indebted - the G runs a budget surplus which is the reason why you get very low yields from the bonds (the G does not need to borrow).

In any case, Singapore has the benefit of having its own currency - if debt issued in the local ccy is a problem, there's always the easy way out of devaluing the ccy (albeit running the risk of hyperinflation) unlike Cyprus stuck to the euro.

It is however worth looking at Cyprus as an example of what can go wrong with a very open economy over-relying on the finance industry to drive the economy. Poor regulations/monitoring (over-exposure to Greek bonds, over-sized finance industry relative to GDP) can lead to a lot of problems.

Moral of the story - diversify your holdings - dun think cash in banks is safe/dun think Singapore is a haven forever.

[sgd]

Outside of EU Singapore is one of the most indebted country in the world. And current PAP government has 2/3 majority in parliament just think what they can do if ever we got ourselves in similar situation.

Singapore is not indebted - the G runs a budget surplus which is the reason why you get very low yields from the bonds (the G does not need to borrow).

In any case, Singapore has the benefit of having its own currency - if debt issued in the local ccy is a problem, there's always the easy way out of devaluing the ccy (albeit running the risk of hyperinflation) unlike Cyprus stuck to the euro.

It is however worth looking at Cyprus as an example of what can go wrong with a very open economy over-relying on the finance industry to drive the economy. Poor regulations/monitoring (over-exposure to Greek bonds, over-sized finance industry relative to GDP) can lead to a lot of problems.

Moral of the story - diversify your holdings - dun think cash in banks is safe/dun think Singapore is a haven forever.

http://temasektimes.wordpress.com/2012/0...surpluses/

http://papers.ssrn.com/sol3/papers.cfm?a...id=2001343

[honeyclover]

http://tankinlian.blogspot.sg/2011/01/si...-high.html

SG's debt compare to Cyprus, US are of different sort.

SG financial position is actually quite alright cos balanced budget.

http://www.gov.sg/government/web/content...evelofdebt

Seriously, i realized nowadays in valuebuddies & other forums/news almost every topic involved politics until i begin to stop reading news & checking forums rarely.

[Musicwhiz]

Seriously, i realized nowadays in valuebuddies & other forums/news almost every topic involved politics until i begin to stop reading news & checking forums rarely.

Yes I noticed this too.

To all forumers: I would encourage political discussions to be kept to a minimum as this is predominantly supposed to be an investment forum.

Thanks.

[sgd]

http://tankinlian.blogspot.sg/2011/01/si...-high.html

SG's debt compare to Cyprus, US are of different sort.

SG financial position is actually quite alright cos balanced budget.

http://www.gov.sg/government/web/content...evelofdebt

Seriously, i realized nowadays in valuebuddies & other forums/news almost every topic involved politics until i begin to stop reading news & checking forums rarely.

You like most just hoping everything sail by smoothly nothing goes wrong until the unthinkable happens like what happen to the greeks.

Yes they borrow our money. HDB does it too and what HDB does everybody can see from apartments they build all over singapore but what Temasek does with cpf money do you know? I think all CPF has on their books are certificates and IOUS - from HDB and Temasek

10 years ago asian currency crisis everybody in the region got hit bad but we were not affected much at all because I remember they say we invested our fortunes in europe and american economies.

So if we were invested did we get out before investors there took haircuts, did we take any haircuts?

[cfa]

Why the delay of payments to members of whom they are bona fide owners of the monies ? why the impose of minimum sums , keep increasing years after years ?

[yeokiwi]

10 years ago asian currency crisis everybody in the region got hit bad but we were not affected much at all because I remember they say we invested our fortunes in europe and american economies.

Source??

[HitandRun]

You like most just hoping everything sail by smoothly nothing goes wrong until the unthinkable happens like what happen to the greeks.

Yes they borrow our money. HDB does it too and what HDB does everybody can see from apartments they build all over singapore but what Temasek does with cpf money do you know? I think all CPF has on their books are certificates and IOUS - from HDB and Temasek

10 years ago asian currency crisis everybody in the region got hit bad but we were not affected much at all because I remember they say we invested our fortunes in europe and american economies.

So if we were invested did we get out before investors there took haircuts, did we take any haircuts?

You are funny. Have you taken a look at the Government's balance sheet before? Folks who have never seen the Government's balance sheet and start arguing over it are akin to the 6 blind men arguing over the elephant.

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Why the delay of payments to members of whom they are bona fide owners of the monies ? why the impose of minimum sums , keep increasing years after years ?

Simple answer is that folks tend to fritter away the retirement money, used to be a mistress or the casino in Batam. After that, they will pressurise the government (through the ballot box) to favour them with more largesse.