The two big money topics today are, or should be, the British budget and the new European bank bailout rules.
The UK budget is a complex affair with winners and losers and a vigorous debate about who the winners and losers really are.
To us, it means we'll stick with the baseline: there are cuts in many government departments and a few that get a little bit more. Some of the cuts are so obvious that you can wonder why they have not happened before. An example is the winter heating allowance, paid until now to everybody, including ex-pats living in warm countries. So, a temperature test sounds good.
Other cuts are the kind of penny pinching ventures that show desperation by the government and create some more desperation in the affected group. People now have to wait another four days after layoffs to sign up for unemployment benefits.
The bank bailout rules are pretty much set, and it is indeed the Cyprus model. Creditors, shareholders, and "large" desposit accounts will be asked to pay up, and the state will give taxpayer money only if this is not enough.
The problem with making savers give up some of the money they have is a relatively low threshold of 100 000 Euros insured in an FDIC like scheme or backed by the government.
That's roughly half of the amount ensured under the US FDIC.
Of course, you can distribute your money among several banks and be done with it.
Or you can play in the stock market or in commodities.
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