Wow. EU steals 10% of bank deposits in exchange for bailout

One could hypothetize that Cyprus is just a warm up. But then, it is just an hypothesis.

 

I agree, there are no good answers here.

 

Cyprus facing ruin regardless of deal
By Nick Squires, Nicosia11:25AM GMT 24 Mar 2013'

http://www.telegraph.co.uk/news/wor...g-ruin-regardless-of-deal-islanders-warn.html
Cyprus’s leaders are expected to submit to the drastic plan - which critics call daylight robbery - in return for a 10 billion euro bail-out loan to save the country from bankruptcy.
While the deal may stave off immediate disaster, many Cypriots said the measures will shatter confidence in the island’s hugely profitable banking and financial services industry and lead to a massive exodus of investors, among them Russian tycoons and British retirees.

Islanders also fear that as the bank levies bite, businesses and big investors will have to start laying off staff, heralding high levels of unemployment.
Around 70 per cent of Cypriots are employed in the financial services and banking sector, a number that dwarfs the 20 per cent working in tourism.
“People are worried not just because they could lose their savings but because they could lose their jobs too,” said Ioanna Constantinou, 24, who works in the financial services industry in Nicosia, the Cypriot capital.
“I think a lot of people will be out of work soon and looking for jobs. The young people, especially, will go abroad because you can’t live with this level of uncertainty,” said Miss Constantinou, who like many Cypriots attended a British university. “The banking sector is finished, we have lost all credibility – who is going to want to bring their money to Cyprus now?”

“The talk among a lot of locals is that Germany has engineered this deliberately to scare off the Russians and so that they can get their hands on the LNG deposits. That way we will be forced to turn to Germany as our next sugar daddy. We have been forced to slap the Russians in the face, even though we didn’t want to,” said John Leonidou, a reporter with the Cyprus Weekly, who was brought up in the UK.
“We have always been important strategically, from the time of the Venetians, the Ottomans and the British. We are slap bang in the middle of Africa, Asia Minor and Europe. The gas reserves makes us even more important. But as a commercial centre, we have been destroyed. We will have to pull off a miracle to bring back our credibility.”

 

When do bankers get the message-they never make a profit in the long run because they have a rotten business model. They should all be run as mutuals,and profits going to the state. When banks try to get clever we all pay-and STILL they don't get it. The arrogance is staggering

 

http://video.ft.com/v/2245361481001/Cyprus-a-geopolitical-crisis

 

Good grief, 70% of their workforce works in the financial sector? Shame on the entire country and EU for letting them get into this mess. That is retarded.

 

<B>09.21 The Sun's Steve Hawkes is reporting that the Kremlin plans on "freezing assets" of German companies in Russia as payback for the bailout deal.

10.12 Russian prime minister Dmitry Medvedev has reacted furiously to the bailout deal, saying:

" In my view, the stealing of what has already been stolen continues."</B>
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It has escalated all right.
The Russians are VERY pissed off.
:eek:
WW3?

 

many friends of Putin, who have parked their money there, are putting pressures.

 

oh lord, eurusd has fallen 100 pips since today peak.
now europan central bankers must buy some euros!
hooray euro currency, in light of germany-russia economic war

folks, russian gov. issued a warning to all of its companies to get out of each and every european financial institution.

europe is a toast. and i'm sure Chinese won't be interested unless flats in London and Paris will cost 80k euros per 2 bedroom in central location

 

Cyprus is like the frontline for Operation Barbarossa part 2.

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Think tank Open Europe do not see this deal ending well for Cyprus:

<B>"Overall, this is a bad deal for Cyprus and the Cypriot population. Cypriot GDP is likely to collapse in the wake of the deal with the possible capital controls hampering the functioning of the economy.
The large loan from the eurozone will push debt up to unsustainable levels while the austerity accompanying it (along with the bank restructuring plan) will increase unemployment and cause social tension.
There is a strong chance Cyprus could become a zombie economy – reliant on eurozone and central bank funding, with little hope of economic growth."</b>