at that point there would be too many competitors. the pressure to do a deal is at its height right now.
There is going to be a bank run anyway. Whatever the solution is, people will just take money out of the banks as soon as they able to. There is no more faith in the system, it is better to just let the banks collapse. Too bad for the pensioners and savers though.
to sum it up, in retrospect, after a 1 week, the way I hear it and understand it, ECB told Cypress they need to come up with 8bb. They figured they would impose some kind of tax on the wealthy. But the banks figured that would hurt the rich too bad, so they just decided to spread the pain around equally, that way, "everybody is paying their fair share." Hard to tell now who is bluffing who. Maybe finance minister figured it would never fly and stood up to the banks by taking it to the people. at anyrate, it is the ECB who now has the big problem back in their hands
Russia has wanted that for centuries. Putin can't believe his luck. Probably can't believe how dumb the politicians in Berlin and Brussels are either.
@BBC_Joe_Lynam : AFP sources: EU calls on Cyprus to set capital controls and merge 2 biggest banks Laiki and Bank of Cyprus.
One thing is for sure it will be a political fudge and delaying any positive action. Von Rompey and the boys and girls have a great chance to show the world what great statesmen they are, but they had better get it right for a change.
What does the EU government think that people in France, Italy, Greece and Spain think about this whole situation as they watch it unfold? Is the news being reported? Do they think it will not happen here or something? I am not surprised the EU backtracked (a little anyway) but I am quite surprised they keep up the pressure. Perhaps they don't feel that it is a mistake. Could it just be a test case?
The EU and Russians are locked in talks. Looks to me as if there might be a firesale of Cypriot assetts by the big boys carving up a small island. Perhaps it serves them right though ? Incompetent clots ! It could set a precedent for other mismanaged economies too. What if the Chinese wanted something solid in return for the ~$10 trillion the USA owes them. Would they be satisfied with a state ? Maybe California being the nearest ? Would a 10% bank deposit levy pay off a big slice of the huge debt ? What about a 10% wealth levy ? Thanks George
Don't worry about people in France. All the other countries have to be dealt with first. From the moment people can talk, this is the first song learned: http://www.marseillaise.org/english/translation.html?liberal .... Citizens take up arms Form your battalions March, march Spill the enemy's blood Over the land ... What do this horde of slaves, Traitors and conspiratorial kings want? For whom have they wrought their vile iron chains? Frenchmen this outrage is prepared for us! What can we do to stop them in their plan To return us to the slavery of an evil past .... Tremble, tyrants and traitors Who bring dishonour to good men Tremble, for your evil schemes Will get their come-uppance We are all France's soldiers in the fight against you Ready to man the breach should our young heroes fal ... Frenchmen, as magnanimous warriors Bear or hold back your blows Spare these sad victims That they regret taking up arms against us But not these bloody despots These accomplices of Bouillé All these tigers who pitilessly Ripped out their mothers' wombs .... We shall follow our elders into the pit Where we shall find their ashes and their epitaphs We prefer to join them in death Or to avenge them, rather than live in shame ... no wonder that apparently the one-term president wanted to change the national anthem.lol.