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GEaston · 17-03-2013, 13:59

Problem the banks have in the UK is that they have to charge 10% on credit cards just to cover defaulters (who for he most part just run). Obviously they charge 20-30% to ensure they can pay bonuses.

Here in Singapore I can get a car loan for 1.88% because Noone defaults. Defaulting is considered culturally shameful........long time since that was the case in he UK.

I expect Cyprus banks will collapse on Tuesday as the public rush to withdraw. What most people don't realise is that banks create 10x more money than there actually is so when this type of run happens they simply don't have it. If more than 5% of people turn up to withdraw then the system collapses. Pretty sure that'll happen here.

17-03-2013, 13:59	#16
GEaston Full Member Join Date: Mar 2013 Posts: 198 Liked: 46 times Rep Power: 65	is this theft ? Problem the banks have in the UK is that they have to charge 10% on credit cards just to cover defaulters (who for he most part just run). Obviously they charge 20-30% to ensure they can pay bonuses. Here in Singapore I can get a car loan for 1.88% because Noone defaults. Defaulting is considered culturally shameful........long time since that was the case in he UK. I expect Cyprus banks will collapse on Tuesday as the public rush to withdraw. What most people don't realise is that banks create 10x more money than there actually is so when this type of run happens they simply don't have it. If more than 5% of people turn up to withdraw then the system collapses. Pretty sure that'll happen here.