Sunday, March 24, 2013

A Dark Cloud Descends Upon Cyprus - Which Country Is Next?


"I have never been so frightened in my life," said Maria Panayides, one of thousands of Cypriots who last week rushed to withdraw cash from ATMs.

With only hours remaining before being cut off from European Union assistance, Cyprus and its citizens are in a state of panic.

Even if the Cyprus Parliament agrees to steal money from depositors to satisfy the European Central Bank, the damage has been done. Whether you live in Greece, Portugal, Ireland, or elsewhere in the Eurozone, can you really trust that you won’t have your own money seized at some point?

And, not surprisingly, the German people are getting tired of bailing out other countries.

UPDATE 3/25/13: There is an agreement to bail out the Cyprus banks. BUT, even though small bank accounts under 100,000 will supposedly not get a "haircut," accounts over that amount will probably lose at least 15 to 20 percent or more.

This will not help the situation for long. The can has been kicked down the road, but it didn't go very far...

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WORDS OF WARNING: GET YOUR MONEY OUT OF EUROPEAN BANKS
Theeconomiccollapseblog.com
March 24, 2013

If you still have money in European banks, you need to get it out.  This is particularly true if you have money in southern European banks.  As I write this, the final details of the Cyprus bailout are being worked out, but one thing has become abundantly clear: at least some depositors are going to lose a substantial amount of money.  Personally, I never dreamed that they would go after private bank accounts in Europe, but now that this precedent has been set it should be apparent to everyone that no bank account will ever be considered 100% safe ever again.


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CYPRUS CRISIS: 'THIS IS THE DARKEST WEEK IN OUR HISTORY SINCE THE 1974 INVASION'
Guardian.co.uk
March 23, 2013

Cyprus is on its knees, with its banks on the verge of closing doors for good and locals and expatriates alike wondering if the island can be saved. Even if a deal with Europe's bankers can be agreed, it will come at an inordinately heavy price.

As zero hour approaches, a small island population watches and waits, consumed with anxiety and simmering with resentment. "This is the darkest week in Cyprus since the 1974 invasion," said Hubert Faustmann, associate professor of history and politics at the University of Nicosia. "The island has been put on the Greek path. What lies ahead are further cuts, austerity measures, more bailouts, because it won't be able to repay the loans, endless misery and recession. It will take years to recover."


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AS DEADLINE NEARS, CYPRUS SCRAMBLES TO DEVISE A BAILOUT
New York Times
March 24, 2013

And now Cyprus and the Eurogroup will try again.

Eight days after hashing out a bailout deal that the financial world reviled and the Cypriot Parliament unanimously rejected, the Eurogroup of finance ministers and Cyprus officials plan to meet here Sunday night with their pencils sharpened.

They face a deadline of Monday, when the European Central Bank has said that it will cut off the financing that is keeping Cyprus’s teetering banks from collapsing.


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CYPRUS CRISIS: GERMANS TIRE OF PAYING BILL FOR EUROZONE'S FINANCIAL FAILURES
Guardian.co.uk
March 23, 2013

"It always comes down to the Germans!" clamoured the tabloid Bild this week in a headline that summed up the frustrations of much of the country as, yet again, Berlin was confronted with accusations that it had let down a fellow eurozone member – this time tiny Cyprus.

Germans readily accept that they have a weightier responsibility towards the rest of Europe than any other EU member, but there is a growing sense of resentment that they are increasingly taking the blame for other EU members' woes.


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Posted by:
Charles M. Grist

3 comments:

  1. Happy Palm Sunday Mr. Grist!

    ReplyDelete
  2. Same to you Jeremy. At least we don't live in Cyprus...!

    ReplyDelete
  3. I think Slovenia is next. I think they had a problem with their economy now.

    too big to fail

    ReplyDelete