"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murder is less to fear"
Cicero Marcus Tullius
This is extremely foolish in the long run and will harm every country in the EU.
CONFIDENCE in banks is critical to the banking industry and the economy.
"Why are Cypriot banks so big? Because the country is a tax haven where corporations and wealthy foreigners stash their money. Officially, 37 percent of the deposits in Cypriot banks come from nonresidents; the true number, once you take into account wealthy expatriates and people who are only nominally resident in Cyprus, is surely much higher. Basically, Cyprus is a place where people, especially but not only Russians, hide their wealth from both the taxmen and the regulators. Whatever gloss you put on it, it’s basically about money-laundering. "
This might clear up some of the machinations occuring in Cypress. I make note that Krugman is a co-author (Krugman-Wells) of my daughters Macro-Economics textbook. He may have some credibility.
Is it a nest of thieves on Cypress?
If it's a tax haven to stash money, I can't understand why Cheney and Haliburton are not registered there. A great home for no-bid contract profits and the ilk. Who do you trust?
The most recent reports have Cyprus changing its' mind and charging accounts over 100,000 Euros a little 25% tax. Somebody gonna get shot in Cyprus. Tomorrow is supposed to be teh showdown. Should be fun to watch. Unfortunately, we know what rolls downhill and the Natives gonna get the weinie.
"Destroyed"? No. We haven't seen an EU-wide bank run.
"Damaged"? I can't imagine how one could argue anything but. The precedent is chilling.
“If we must have an enemy at the head of Government, let it be one whom we can oppose, and for whom we are not responsible, who will not involve our party in the disgrace of his foolish and bad measures.”
- Alexander Hamilton. Spiritual father of #NeverTrump
I've been reading about this again this a.m. and it reminds me of the defaults by Greek banks that weren't defaults, but writedowns where the owner of the note didn't get paid and couldn't collect on his Credit Default guarantees. The Eurobank and IMF talk about winding down the second largest bank in Cyprus and avoiding the word bankruptcy and I'm smelling some dead fish. Looks like another deal where CDSs owners get boned. Is it OK for the IMF and Eurobank to screw Russians out of Billions of dollars, or am I confused in this matter? Gonna be some nice fire sale buys on "Privatizations" and "who benefits?" Cypriots might pay attention here. Instant 900% tax on privatization buys.