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EYE-BALL’s Guru on – The Cyprus Bailout –

March 31, 2013
Latest GURU Posts:

31st Mar – Australia’s Debt – and the idiots Managing the Treasury –

– 20th Feb – Australia’s Parliamentary Remunerations – Part II – Entitlements and Allowances –

– 13th Feb – Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements –

– 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy –

– 23rd Jan – The Turmoil is Already here – We just have to accept what is coming –

– 22nd Jan – The Turmoil is beginning – Japan’s Economic Stimulus to tip the scales –

– 20th Jan – Wayne Swan Tips his hat at New Yorker’s

– 10th Jan – The ANZ Whitehaven Hoax –

– 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan –

– 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies …

– 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong

– 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting –

– 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases –

– 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING –

– 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s –

To see more GURU posts: – click here …

– The Cyprus Bail-out –
| Author: EYE-BALL Guru | 31st Mar 2013 |
Get ready Australia – this Government is about to screw every wealthy superannuant in a Cyprus style deal to fund their overspend.  If they can’t get it from the Miners they will get it from the shareholders and Fund Managers who have profited from the mining boom – not really … it is not that simple.

The detail being revealed by the Cyprus bail-out is quite disturbing – read more below:

Cyprus bank savers face bigger losses

| Date: Mar 30th 2013. | Link to On-Line Story. |

Big savers in Cyprus’s largest bank face losses of up to 60 per cent, far greater than originally feared under the island’s controversial EU-led bailout plan, officials said on Saturday.

Lawmakers were meanwhile investigating a list published in Greek newspapers of Cypriot politicians who allegedly had loans written off by the island’s three biggest banks, two of them at the heart of the financial meltdown.

Officials said Bank of Cyprus savers will see at least 37.5 per cent of funds over 100,000 euros turned into shares, but a further 22.5 per cent will be held until authorities know they can satisfy the terms of the bailout.

Under the first eurozone rescue package to punish savers with a so-called ‘haircut’ of their money, Cyprus can only qualify for the 10-billion-euro ($A12.51 billion) loan by finding 5.8 billion euros of its own.

‘There will be a 37.5 per cent haircut on deposits over 100,000 euros that will be converted into shares,’ said Marios Mavrides, a lawmaker from the ruling Disy party.

‘Then 22.5 per cent will be held from the account for about two or three months, but this sum might be lower if a bigger haircut is needed,’ Mavrides said.

Senior Bank of Cyprus official Mario Skandalis confirmed the figures.

‘There was a preliminary level reached which was 37.5 per cent but this has not been finalised yet,’ he told AFP, adding that if the required amount for the bailout ‘cannot be reached then we will change the haircut rate.’

Asked whether the rate that savers with deposits of more than 100,000 euros will lose could be as high as 60 per cent he replied: ‘It could be a possibility but I would say it is a remote possibility.’

He expected a formal announcement by Monday.

Lawmaker Mavrides said the remaining 40 per cent would be ‘placed in a time deposit for about six months to prevent people drawing all their money out but it creates a problem for businesses who have no access to working capital.’

‘The money is not lost but creates a problem for businesses.’

House finance committee chair Nicolas Papadopoulos told state radio there were questions over the possible extra levy on the held-back 22.5 per cent, and said a lack of information had created panic among depositors.

The bailout takes the axe to Cyprus’s prized tax-haven style banking system – bloated with Russian money and exposed to toxic Greek debt – and also threatens to deepen the recession the island was already suffering.

Bank of Cyprus is set to absorb the island’s second largest Laiki under the deal with the European Union, European Central Bank and International Monetary Fund. Laiki will be wound up with the loss of thousands of jobs.

Lawmaker Mavrides, meanwhile, confirmed that a committee appointed by President Nicos Anastasiades would investigate a list published by Greek media of Cypriot politicians who allegedly had loans forgiven.

The Bank of Cyprus, Laiki and Hellenic Bank reportedly forgave millions of euros in loans over the past five years to lawmakers, companies and local company authorities, newspapers in Greece said.

The allegations would likely be discussed in parliament next week, Mavrides added.

Banks reopened on Thursday without the feared panic and resumed normal opening hours on Friday.

Draconian controls remain in place, including a daily withdrawal limit of 300 euros and bans on cashing cheques or taking more than 1,000 euros in cash out of the country.

As you see … nothing is a sure thing when it comes to trusting a Government to do the right thing by its citizens.

Can you imagine an Australian government placing a new tax/levy/bailout penalty on the savings of Australian people?   Well get ready – Gillard under advice from Swan is demanding that he be allowed to tax wealth Australians superannuation to give the Government more funds to waste on election promises and help balance a budget out of control.

This is the lowest form of moral bankruptcy – in times of war the need is for higher revenues to fund a war effort – in a like EuroZone crisis the Governments have to take drastic action – what is the reason for this Australian Government to take like action to fund a Government woefully out of its depth in controlling its own spending?

This is not even wealth distribution in traditional Labor values.

Nobody wants to give this Government any more money via taxes and the like because they are not responsible, nor accountable with the current revenues.  It would only be a short-term measure until a new tax would be created to cover the continued wastefulness.

Cyprus’s issues are the same as with Greece, Spain and the like – the value of the €Euro  is killing their economy – the same with Australia’s currency value.

The only thing that will save these minnow Nations will be the break-up of the EuroZone and allow these Nation’s currencies to devalue and become competitive once again.

The Architects of the EuroZone were completely wrong in their assessment of how the smaller Nations would and could survive.

Will the politicians who designed this monster of a clusterfu_k please step forward and take responsibility.

Will the Banks who backed the Euro in this plan please do the same – its been a 15 year experiment that had failure all over it from the word go.

In the end – who again is paying the price for stupidity of Government Leaders?

Who are the ones still receiving pensions and the proceeds of corruption payments to get the EuroZone up and running.

It begins and ends with stupid and dumb leadership and Australia has it in spades and their attack on Superfunds are criminal in their intent.

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Have your say where it counts: – contact your Local Federal Representative via the links below and let them know how you feel about this, or any other topic that you feel strongly about – or you can just post a comment below and let off some steam.

The EYE-BALL Guru …

  1. April 1, 2013 at 12:05 pm

    Your suspicions might be well founded.

    Superannuation is a strange thing. All studies show that given the choice of consumption now to consumption later is skewed towards consumption now. Hence the earliest attempts to force wage earners to fund their own retirement.

    However those earliest attempts were both flawed, and a political soccer ball (to be kicked around). Example, indexation of wages being sacrificed for superannuation entitlements led to lower immediate treasury incomes, hence tax on entry, tax on investment earnings & tax on exit. Since then the changes in taxation on superannuation pools became most confusing. By 2007, statutory super became a play thing of the tax planning industry. Worse still it remains so, today.

    There is some substance to claims by that goose Emerson. If the words weren’t coming from his mouth, some might listen. That is another story – the lack of government credibility.

    I am tired of Government relying upon independent expert panels being used to veneer government’s functions and moral obligations. But sadly that is really what is needed right now. A wide ranging external inquiry into the effect of superannuation policy. Try to consolidate small balances into a main fund. The financial planners can do it for you, on the basis you take all of their advice, not just that which minimises their octopus tentacles on your entitlements. I can find examples where funds steal small balances using fees and life premiums and no one cares. What can you realistically do about say $500 simply stolen? The very concept of an ombudsman collapses on itself. They get swamped with complaints on limited resources, and sooner or later only address the bigger cases, what they term “test cases”.

    The opposition claim it is time for a competition inquiry into banking. Yet you also know that vested interests will attempt to influence and lobby the outcome. What will change? Might it be broad enough to encompass superannuation pools. Superannuation is controlled in Australia by the major banks, through Colonial, MLC and BT, and ANZ want a better share. What portion of superannuation fund’s underperformance is contributed by banks control and taking super profits out of wealth creation and put into banks bottom line? APRA claim to address this, but APRA too is just another self serving bureaucracy.

    No matter what occurs, it will be complex, and made simplex by spin. This is for you! We are such good guys, aren’t we!

    Believing in sanity is itself insanity!

  2. April 1, 2013 at 12:34 pm

    There is plenty here – Herman mentions Banks involved with Superannuation Fund Management – APRA have been keeping an eye in Bank share ownerships by these fund managers and how it plays when stock lending and market trading interacts with market moves …

    The bottom line is that it’s all connected – corporate manipulation and those in the know able to jump the queue when billions are involved.

    Take my old friend Nick Greiner and his attachment to backroom deals and walking on the ‘dark-side’ … check the story out below …

    Nick Greiner colleagues ‘oblivious’

    | Author: Jared Owens, Glenda Korporaal | Date: April 1st, 2013 | Link to On-Line Story. |

    BOARDROOM colleagues of former NSW premier Nick Greiner were oblivious to his involvement in “cartel” conduct that netted an affiliated company more than $20 million profit, CHAMP Private Equity executive chairman Bill Ferris has said.

    The Federal Court last month found Mr Greiner, chairman of mining services firm Bradken, organised the “back door” purchase of market rival Norcast Wear Solutions by engaging New York private equity firm Castle Harlan to secretly bid on Bradken’s behalf for a $US22.4 million fee.

    Castle Harlan purchased NWS for $190m in July 2011, seven hours before it sold the company to Bradken for $212m.

    Speaking to The Australian, Mr Ferris accepted some people would suspect CHAMP of involvement in the controversial deal, as it has previously advised Bradken and is a part-owned affiliate of Castle Harlan.

    “Nick Greiner is chairman of Bradken and he is deputy chairman of CHAMP. He is a director of many companies,” Mr Ferris said. “Neither I nor, to my knowledge, anyone at CHAMP has ever been aware of the transaction between Norcast, Castle Harlan and Bradken prior to when it happened.”

    Mr Greiner declined to comment on the court ruling but said Mr Ferris was “100 per cent correct” to claim that CHAMP – an acronym for Castle Harlan Australia Mezzanine Partners – had no knowledge of the purchase.

    Judge Michelle Gordon found Mr Greiner was “evasive and hostile” in the witness box and “eventually concluded he did not recall what he meant” in an email to Castle Harlan that could only have described the rigged bid.

    NSW Premier Barry O’Farrell, who is under pressure to dump Mr Greiner as chairman of Infrastructure NSW, last week sought advice from the Department of Premier and Cabinet that indicated Justice Gordon’s findings did not prevent Mr Greiner acting as chair of the body.

    Mr O’Farrell told parliament last week: “As I understand it, an appeal is being lodged and so the legal process is not complete.

    “Let us not get in the way of legal process.”

    Mr Greiner, a Liberal, stood down as NSW’s premier in 1992 after the ICAC found he acted corruptly. The findings were later overturned on appeal, but not before Mr Greiner resigned and was replaced by John Fahey.

    Greiner and Obeid – you would think have nothing in common – think again …

  3. Colin N Spencer
    April 1, 2013 at 3:21 pm

    Hear hear!

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