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Deyan Ranko Brashich

Deyan Ranko Brashich
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  • Cyprus has been preparing capital controls that it plans to impose on banks when they reopen for business tomorrow after being closed for almost two weeks. Russia has warned Cyprus not to make the controls too onerous. Meanwhile, Cyprus's central bank has fired the CEO of the Bank of Cyprus. Moody's reckons the country will remain at risk of default for a "prolonged period," and thinks that the EU's confidence that it can contain contagion is "misplaced." [View news story]
    This is only the beginning. When Greek bonds became practically worthless, Cyprus' banks took a major hit and lost billions in assets. That was the EU's seat of the pants solution but it only made Cyprus' banks more vulnerable. To add insult to injury their depositors are now being "taxed" probably to the tune of a 40% loss of their deposits. A unravelling house of cards [I know mixed metaphor]. See my comments
    Excerpt: So you still want to join the EU and buy into the Euro? Think again.

    If you haven’t noticed the EU promised to bail out Cyprus’ banking and financial system over the weekend. The bailout was not engineered with finesse and a scalpel; it was bludgeoned into place with a meat cleaver. To add insult to injury, the EU broke the promise that had safeguarded bank depositors since the Great Depression, government insured checking and savings accounts.

    Well the promise to safeguard depositors is no more. It’s gone with the wind, now its sauve qui peut, every man for himself.
    Mar 27, 2013. 10:39 AM | Likes Like |Link to Comment
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