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 In Germany, I suspect, by way of contrast, there is no comparable insecurity about the reliability and adequacy of public pensions/health provision and thus no need to build up a comparable equity base in property or other assets.

It is also a tenant law thing. Strong laws protecting tenants give them stability and less desire to own. That said with their low homeownership rate germany is rather the exception in europe.

But of course all of this is well known and I see no direcht relation with the cyprus bailout.

And the russian money in Cyprus is real enough.

by IM on Mon Mar 18th, 2013 at 07:14:00 AM EST
[ Parent ]
I was more commenting on the alleged ECB report showing much higher levels of median wealth in Italy than in Germany and how difficult this makes it for Germans to contemplate bailing out allegedly wealthier countries who don't play by the rules.

Also, as an aside,  it is easy to grasp at a narrative alleging vaguely illicit Russian "grey" money when we don't know much about how this is different from trillions of other "investment" money looking for a home all over the world. If the Russians had put their money in senior bonds (like German banks?) rather than into deposits, would this have made it less grey? Is Russian or German money in Swiss banks any less grey?

It seems to me that individuals with some but not a huge amount of wealth are more likely to put their money into deposits rather than bank bonds - which are more the preserve of the seriously rich - but what do I know... this is a different world to the one which I inhabit.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon Mar 18th, 2013 at 07:41:41 AM EST
[ Parent ]
Bonds are often traded at big nominal values, say 100 000 euros. You can buy bond funds, but then you have to live with a management fee, and there is also a long waiting period (like three days) to get out of your position, while both bonds and deposits can be liquidated immediately.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Mon Mar 18th, 2013 at 07:46:44 AM EST
[ Parent ]
But of course all of this is well known and I see no direcht relation with the cyprus bailout.
Ahem
The ECB is hiding the results of a study about the distribution of financial wealth in the eurozone until after the decision about an aid programme for Cyprus, Frankfurter Allgemeine reports this morning, quoting unnamed central bankers. The intention of the delay is to prevent the data being used to question the programme.


I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Mon Mar 18th, 2013 at 08:12:11 AM EST
[ Parent ]
That is nonsense. This isn't the first study of this sort. The basic results are well known. Mostly a house owning thing. And there will be resistance to the cyprus bailout anyway.
by IM on Mon Mar 18th, 2013 at 08:25:24 AM EST
[ Parent ]
So the ECB's actions and beliefs as reported by the FAZ are nonsense?

In any case, it might be true that releasing the report int he middle of the Cyprus bailout debate mught have short term political implications. Media narratives, news cycles and all that.

What's extraordinary is that they had been "monitoring the effect of Cyprus on the markets" over 90 days and decided Cyprus posed no contagion risk, while at the same time making decisions about the release of unsurprising economic data based on diffuse fears of BILD Zeitung.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS

by Migeru (migeru at eurotrib dot com) on Mon Mar 18th, 2013 at 08:47:55 AM EST
[ Parent ]

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