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"What we are witnessing is the slow death of the European project," says Athanasios Orphanides,...

"What we are witnessing is the slow death of the European project," says Athanasios Orphanides, former Central Bank of Cyprus Governor. What we have, he says, are decisions being taken in Germany sequentially spreading misery to the periphery, and now it's blackmailed the Cypriot government into confiscating its citizens deposits. No one in a small or weak country should feel safe.
Comments (14)
  • I guess he's not pleased he'll be receiving his annual caviar gift basket from Gazprom and other Russian friends...
    19 Mar 2013, 10:24 AM Reply Like
  • Another A hat who expects others to bail out their greed and stupidity.
    19 Mar 2013, 10:35 AM Reply Like
  • The only reason Cyprus is in trouble at all is Greek bonds. It's domestic economy was stronger than Germany's before the crisis.
    19 Mar 2013, 10:46 AM Reply Like
  • There is a significant element of truth that it was bad investments in Greece that triggered the insolvency but what does it matter? Had they purchased German or Italian bonds they would have been o.k.(at least as of today).

     

    The banks took a risk in Greece and it didn't work out.

     

    If the Cypriot government wants to try and recapitalize the banks, they certainly could. Having said that, there is no legal or moral obligation that I am aware of that would require that the rest of the EU to kick in 10 B Euros to help the banks either.
    19 Mar 2013, 12:02 PM Reply Like
  • what domestic economy?
    just Russian indivuduals deposits account for 8 times GDP..!!!!!!
    19 Mar 2013, 01:05 PM Reply Like
  • that guy has sufficient g... to speak about the European project when Cyprus and Malta have used their status to build a fiscal gateway for
    "black money" coming from Europe.
    is he asking for 10 bil ie a full year of GDP without any counterparties.... ?
    19 Mar 2013, 10:57 AM Reply Like
  • So Greece gets into big trouble running up debt but is too big to fail so it gets an EU bailout. As part of the Greek bailout provided by the EU Greece’s bondholders take a haircut. “Greece’s bondholders” is in part the Cyprus banks who became the next domino.
    The Cyprus banks have lots of depositors and not enough bondholders to cover the loss, so right now if it sticks, the EU decided the bondholder escapes and the depositor take the hit. This is acceptable to the EU as a good many of the depositors are non EU citizens.
    What ever happened to bankruptcy laws and following the rule of law?
    And today we have another example of the altruistic homo sapien, its ability to remove self-interest from its decision making process and to successfully manage and plan its economy.
    19 Mar 2013, 11:16 AM Reply Like
  • The rule of law would require haircuts of 30-50% on depositors with balances greater than 100K Euros from what I've read. I'd support that plan.

     

    The Cypriot government does not want to do this. I'm not sure of the reasons.
    19 Mar 2013, 12:12 PM Reply Like
  • The politicians won't be reelected and they won't be able to show their faces in their neighborhood! Cyprus is a small place with no where to hide!
    19 Mar 2013, 12:24 PM Reply Like
  • Cyprus like the rest of em is being slowly foreclosed on. I was no fan of the GM bailout, but it worked, restructure move on. I believe all these countries would be out of it by now had they done the same here.
    19 Mar 2013, 11:26 AM Reply Like
  • The opening of a Pandoras box should make NO Country feel safe..All bets are off now, every option is now on the table in the future..Better be careful !!
    19 Mar 2013, 11:27 AM Reply Like
  • Before anything, we should remember hell is paved with good intentions. Europeans governments are slowly imposing all ind of measures (political, economical) to any kind of countries, thinking they are right to make the Good. But what is good for Europe is maybe not good to Cyprus. Cyprus has nothing to do in Europe and should take the occasion to go out of this mess.
    19 Mar 2013, 12:24 PM Reply Like
  • Yes, those evil Germans must have made the Cypriot banks offer 11% CD's. Of course.
    19 Mar 2013, 12:50 PM Reply Like
  • Cyprus = rodeo clowns of the Med
    19 Mar 2013, 01:58 PM Reply Like
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