Bailout of Cyprus to cost depositors 10% immediately

Discussion in 'Markets & Economies' started by Caput Lupinum, Mar 16, 2013.

  1. bordsilver

    bordsilver Well-Known Member Silver Stacker

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    http://coppolacomment.blogspot.co.uk/2013/03/the-broken-euro.html


    Note that temporary capital controls in Iceland have been in place for FIVE years and may go for another 2-3 years.
     
  2. Peter

    Peter Well-Known Member

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    My take on Cyprus.
    there's large gas reserves between Cyprus and ISrael.Europe wants control of the field to stop its dependence on Russian gas.
    Russia wants control of it so as to continue Europe's dependence and also to get a naval base (and airfield?) In cyprus.Europe's bailout gets control of the gas, and stops Cyprus dependence on Russia financially.

    Quote"Why would Russia be acting this way towards Cyprus? The obvious answer is that Russia knows exactly who's sitting around this poker table: it's not Cyprus that they're playing, it's the EU. If Russia were to enter into good-faith negotiations with Cyprus right now, that would help the EU, by reducing the amount of EU support that the island nation needs. Moreover, any deal that Russia made with Cyprus could be vetoed by Germany, or the Eurogroup, or the ECB, or even possibly the IMF. Russia is too big and too important to try to do deals which could be forcibly unraveled on a German finance minister's whim.
    ...................
    More generally, Russia is taking an absolutist stance with respect to Cyprus. No, we won't restructure the money you owe us. No, we won't buy a bank off you. No, we aren't interested in your natural-gas reserves. And underlying it all, of course, an unspoken and all the more powerful for being unspoken physical threat to any Cypriot who causes powerful Russians to lose billions of euros.
    ...........................................
    "It's also easy to imagine that Putin's Russia views its relations with the EU as something of a zero-sum game. Russia also has a more than 150-year obsession with acquiring influence, if not outright control, over warm-water ports in Southern Europe. Looked at that way, the loss of Cyprus from the EU to Russia would be a clear loss to the EU and a clear win for Russia.
    more at
    http://blogs.reuters.com/felix-salmon/2013/03/22/cyprus-what-are-the-russians-playing-at/
     
  3. bordsilver

    bordsilver Well-Known Member Silver Stacker

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  4. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    It's still got one last hurdle to clear. The Cypriot government have to vote for it
     
  5. Caput Lupinum

    Caput Lupinum Well-Known Member Silver Stacker

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    Actually scrap that. Apparently they've worded the bailout so much so that it is not considered a tax and the Cypriot government aren't required to vote on it literally bypassing democracy
     

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