Aren't there counter-parties exposed to Cyprus bank debts that will get hit badly? Could they take 100% of the money and it's still not enough to stop the capital flight? Other European countries watching this fiasco are not stupid and this is a pretty small hole to fill.
Politically, it's common to ramp up the fears of a 75% haircut and when they vote, it ends up being really only 40%. The people wipe the sweat off their brow and praise the politicians. It's a darn good thing, one can only die once, or they would make you pay over and over again forever. Amazing how many times people fall for this approach.
just so you know, I am going to pour some oil on the fire. Leftitst in America : these people do not know what it means to be leftist.lol Soon France will be exporting the art of rioting properly. lol. Taking a cut on any recouped money. hahaha
Latest proposal: 20% on all accounts above 100 K but only Bank of Cyprus. 4% on all accounts above 100 K for all other banks in Cyprus Greek divisions of Cypriotic banks will probably be sold to Greece. Laiki Bank will be liquidated. Bad bank will be installed.
Cypriot president Nikos Anastasiades 'warned' close friends of the financial crisis about to engulf his country so they could move their money abroad, it was claimed on Friday. The respected Cypriot newspaper Filelftheros made the allegation which was picked up eagerly by German media. Germans are angry at the way their country has been linked to the Nazis and Hitler by Cypriots angry at the defunct rescue deal which called for a levy on all savings. The Cyprus newspaper did not say how much money was moved abroad but quoted sources saying the president 'knew about the possible closure of the banks' and tipped off close friends who were able to move vast sums abroad. Italian media said the 4.5 billion euros left the island in the week before the crisis.
Politicians are same every where regardless of nationality, ethnicity or religion i.e. mostly corrupt and Cyprus is no different. Greek Cypriots tried to screw the Germans ( animosity from the 1st & 2nd World War) by doubling down and helping their brethern in Greece at the same time. Germans got wind of this and that's why the difficulty, otherwise its not a lot of money Bill Gates or Warren Buffett can bail them out on their own. Even vulture fund billionaire Wilbur Ross is not interested, indicating weak banking sector at a recent tv interview i.e. natural creditor base.