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There's no chance Germany lets Cyprus default, says Cullen Roche in a wonderful twitter rant. A...

There's no chance Germany lets Cyprus default, says Cullen Roche in a wonderful twitter rant. A default means a quick economic bust, but also a return to a now "super-competitive" currency, at which point the Greeks gaze across the water and realize what a great idea this is. This will be followed by the Portuguese, the Spaniards, and the Italians. There goes the German trade surplus. Something to think about before reflexively reaching to sell euros every time bad news hits.
Comments (12)
  • volosgirl
    , contributor
    Comments (20) | Send Message
     
    No way will Merkel and company let it happen. The threats to Cyprus sound heavy buy if I had to bet a gold bar no way will Cyprus go down.
    22 Mar 2013, 03:17 PM Reply Like
  • surftree
    , contributor
    Comments (4) | Send Message
     
    Agree, she does not want to win the upcoming elections. And the Germans just love to support people living beyond their means. --Sarcasm!
    22 Mar 2013, 03:58 PM Reply Like
  • Pwdrskir
    , contributor
    Comments (135) | Send Message
     
    I think bailing out Russian Oligarchs is at Top of the German people's list of things to do. They love bailing people out...
    22 Mar 2013, 05:23 PM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Probably not, but never, ever underestimate the capacity nations have for doing things that are not in their best interest.
    22 Mar 2013, 03:21 PM Reply Like
  • Killer454
    , contributor
    Comments (889) | Send Message
     
    A super competitive currency is nice and all BUT you still have to able to manufacture products of acceptable quality to sell.

     

    I don't think the Greeks are going to be overtaking the Germans in engineering or manufacturing anytime soon regardless of currency valuations.
    22 Mar 2013, 03:31 PM Reply Like
  • xcobrastripesx
    , contributor
    Comments (13) | Send Message
     
    Exactly....people still buy BMW and Mercedes despite the high price point...
    22 Mar 2013, 05:23 PM Reply Like
  • SteveK
    , contributor
    Comments (64) | Send Message
     
    The Cypriots need to accept reality and pay their part of the price to stay in the euro ... default is way too much pain! As regards the Greeks, if they look to Cypriot actions as a possible escape option, they too are in denial and should reap the same pain they so dearly deserve.
    22 Mar 2013, 03:42 PM Reply Like
  • petten
    , contributor
    Comments (128) | Send Message
     
    Makes sense.
    22 Mar 2013, 04:11 PM Reply Like
  • tobaccorogue
    , contributor
    Comments (40) | Send Message
     
    Cyprus is way too small a fry to let go down. Its an economy the size of Shreveport , LA. But you gotta believe that the Euro Banksters would not mind sheering the Russian Mobsters with big deposits there.
    22 Mar 2013, 04:12 PM Reply Like
  • Sakelaris
    , contributor
    Comments (1442) | Send Message
     
    Here are observations modified from postings I made earlier; a few people on this thread might want to consider them:

     

    Within the last forty years only one of the current EU nations--Cyprus--has been invaded by another nation, has lost a third of its territory, lost thousands in civilians dead, raped or missing, and has had to resettle 200,000 of its population, who had to flee from the invaded area as refugees. The invading nation was Turkey in 1974, supplied with US weapons. Both the US and the British (who hold Cyprus bases) looked the other way. Turkey still occupies (and now colonizes) the northern third of the nation, in defiance of a UN resolution.

     

    Yes, we can all say that Cyprus then proceeded to make itself too dependent upon becoming a banking center. Lack of economic diversification carries risks, but please consider that background, as Cyprus had to try things to recover from what happened in 1974.

     

    Moreover, there now appear to be promising offshore energy resources that could be developed by Cyprus. However, Turkey has been making threats against any such development.

     

    Do the US and western Europe really want to see this much-abused people turning to Russia for protection?
    22 Mar 2013, 04:48 PM Reply Like
  • Hendershott
    , contributor
    Comments (1584) | Send Message
     
    The Russians should just buy a couple of these banks. What a way to launder money!
    22 Mar 2013, 06:44 PM Reply Like
  • No Moss
    , contributor
    Comments (120) | Send Message
     
    The Cyprus thing. Gee, didn't we learn anything from Iceland? It's a race now to see how Germany will shore this little island up. A mere 10 billion Euros is not much in the big scheme of things, but Germany has to do it in a way that doesn't offend its long-suffering tax payers. Germany benefits mightily from the Euro. It has a huge trade surplus that it wouldn't have if it was selling to countries with weak currencies and high borrowing costs.

     

    Cyprus holds the trump card in these negotiations, they just have to be patient and discrete.
    22 Mar 2013, 11:25 PM Reply Like
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