Posted on 03/17/2013 8:52:16 AM PDT by blam
They may not realize it by the Cypriots' euros are backed by their land, cities, buildings, industries, what have you.
What a convenient way for the Russians to step in, "for safety's sake"
Cyprus is the preferred offshore banking center for Russian billionaires. It's banking system is all out of proportion to its domestic economy. This action was a slap in the face to the Russians.
Figuring 9% average, weighting the EU 5.8 Billion ‘rake’ for a preponderance of larger size accounts, my math says the banks are holding upwards of UE5 Trillion in deposits. That’s a lot of banking for a country whose GNP is a paltry fraction of that amount.
I would consider it more a slap to the ordinary working (or unemployed or retired) people -- the little guys.
The Russians will consider a 10% penalty on their hot money to be a screaming good deal. It's basically a green light to them: An ALL CLEAR.
Pure evil.
Indeed and they wonder why nobody trusts them.
I did not mean to minimize the impact on Cypriot savers. I was answering a comment about the small size of Cyprus's economy by pointing out its status as a European tax haven.
The Russians will consider a 10% penalty on their hot money to be a screaming good deal. It's basically a green light to them: An ALL CLEAR.
Perhaps, but don't you find it odd that Putin, himself found it necessary to condemn the action today?
Yes. This was a terrible decision and the markets showed their displeasure today. But it was also the EU elite's passive-aggressive reaction to Putin's general bellicosity.
I’ll wait until Wednesday for the blood in the streets. If none, on to the next big distraction.
Heh. A visit to a mall by the new Pope will probably do it.
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