Posts Tagged ‘Cypress’

It’s almost spooky to see this play out.  Last week, the idea of taking deposits was floated in Cyprus.  An uproar ensued (the banks are still closed there).  Cypress appears to have rejected the idea but I suspect it’s more tabled than rejected for the moment.  I wrote that it doesn’t really matter as Pandora’s box has been opened.  I did not expect to hear less than a week later the open admission this precedent will be acted upon in other regions, “if necessary”.  I thought they’d give it a month or so, at minimum.  I was wrong.

…this article speaks of shaken confidence should the money grab occur.  I submit the damage is done.  By planning this and moving to execute, the Cypress government betrayed their citizens.  By planning this and moving to execute, the Eurozone leaders did the same.  The message has been sent: we can and will take your money.

I agree, Mr. President.  Interestingly, I wonder if the architects of this money grab considered half the money in the banks there belong to Russian citizens?