tag:blogger.com,1999:blog-2761684730989137546.post8984532265262431444..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Al Jazeera — Cyprus clinch last-minute bailout dealmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2761684730989137546.post-87183305412688779042013-03-25T11:54:44.960-04:002013-03-25T11:54:44.960-04:00Point taken on Cyprus Dan but these officials are ...Point taken on Cyprus Dan but these officials are at the EU level... it's like they think they have to "raid" the island to "get the money" (metal coins) out of depositors accounts (clay jars) in Cyprus...<br /><br />"The raid on uninsured Laiki depositors is expected to raise 4.2 billion euros, Eurogroup chairman Jeroen Dijssebloem said."<br /><br />Ancient mentality... very Viking-like... this guy's pagan Viking ancestors must be proud of him looking down on him from Valhalla....<br /><br />rsp,Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-53123615717029754432013-03-25T10:15:06.940-04:002013-03-25T10:15:06.940-04:00Well since Cyprus doesn't have its own currenc...Well since Cyprus doesn't have its own currency, their situation is functionally similar to being on the gold standard.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-76733851824639647542013-03-25T07:33:36.228-04:002013-03-25T07:33:36.228-04:00From a Reuters story at Yahoo:
"Cyprus clinc...From a Reuters story at Yahoo:<br /><br />"Cyprus clinched a last-ditch deal with international lenders to shut down its second-largest bank and inflict heavy losses on uninsured depositors, <b>including wealthy Russians</b>, in return for a 10 billion euro ($13 billion) bailout."<br /><br />this should be interesting to see how the Ruskies react... hey they could have done the loan but I guess they were afraid of losses on the loans... <br /><br />if they ever thought they could be invited into NATO they probably just missed a golden opportunity to make a big step towards that goal... IF that is a Russian goal... they chickened out on the loan... the loan would have put them in a leadership position in the region, but with such leadership comes some risk...<br /><br />"Deposits above 100,000 euros in both banks, which are not guaranteed under EU law, will be frozen and used to resolve Laiki's debts and recapitalize Bank of Cyprus through a deposit/equity conversion.<br />The raid on uninsured Laiki depositors is expected to raise 4.2 billion euros, Eurogroup chairman Jeroen Dijssebloem said.<br />Laiki will effectively be shuttered, with thousands of job losses. Officials said senior bondholders in Laiki would be wiped out and those in Bank of Cyprus would have to make a contribution.<br />An EU spokesman said no across-the-board levy or tax would be imposed on deposits in Cypriot banks, although the hit on large account holders in the two biggest banks is likely to be far greater than initially planned. A first attempt at a deal last week collapsed when the Cypriot parliament rejected a proposed levy on all deposits.<br />Cyprus government spokesman Christos Stylianides said: "We averted a disorderly bankruptcy which would have led to an exit of Cyprus from the euro zone with unforeseeable consequences."<br /><br />You can just feel the "gold standard" mentality throughout this paragraph... ie "govt has to get the money..." like we are still using metal coins carried around in clay pots.... what a bunch of morons...<br /><br />Looks like austerity for Cyprus...<br /><br />Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.com