The madness of the bailout in Cyprus
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The madness of the bailout in Cyprus
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Re: The madness of the bailout in Cyprus
#2If I were in Greece, Italy, Spain, or Ireland, I think I would pull out all my bank deposits but the bare minimum cash needed to cover obligations.
Re: The madness of the bailout in Cyprus
#3Expect this to happen all over Europe. In particular England.
It has happened before and will happen again, until the fuckers in charge understand and learn.
But no one would vote on the guy calling for budget cuts. Everyone likes the guy with the hand outs.
Re: The madness of the bailout in Cyprus
#4It's absolutely insane. I can't understand how they think this will cause anything other than a catastrophic bank run on Tuesday.
At least they get to skim off a percentage before the banks collapse, I guess? Someone's benefiting, somehow.
Re: The madness of the bailout in Cyprus
#5The bank run was an entirely predictable result. And one which the courts may soon have to untangle.
I too expect that capital will move from weaker banks into stronger ones and that will result in a liquidity crisis.
Along one path the European Union dissolves, and along another path nation-state sovereignty dissolves. Either way it seems pretty clear that countries with larger economies don't seem to be particularly willing to continue to let poorly run smaller economies drain them of resources.
Re: The madness of the bailout in Cyprus
#6[deleted]
Re: The madness of the bailout in Cyprus
#7It's not just the banks. Cyprus has a huge public debt[1].
The measure is also not the first of its kind in the EU - Italy did it in 1992 to cover a financial emergency. They took "only" 0.6% from all bank accounts back then.
[1] http://www.cyprus-mail.com/cyprus/highest-annual-increase-go...
Re: The madness of the bailout in Cyprus
#8[deleted]
Like 90% of the past 5 years, this isn't a banking problem, it's a government problem. The IMF can suggest ways to fund a bail out, but the government has to accept it. Confiscating your citizens money is a horrible precedent.
Re: The madness of the bailout in Cyprus
#9The article is a lot of fear mongering.
It ignores the fact that before the EURO the Southern European countries had high inflation rates and hence didn't need bail outs. These high inflation rates devalued savings in the local currencies and often created similar runs on banks. Since the smaller economies have a low impact on the EURO inflation this is an alternative adjustment.
Re: The madness of the bailout in Cyprus
#10Expect this to happen all over Europe. In particular England. It has happened before and will happen again, until the fuckers in charge understand and learn. But no one would vote on the guy calling for budget cuts. Everyone likes the guy with the hand outs.
According to the article government spending wasn't the problem here, the problem was Cypriot banks making bad investment decisions.