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View Diary: BREAKING NEWS: Parliament of Cyprus Rejects "Bailout," Bank "Haircut" (143 comments)

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  •  This is about more than just Cyprus (16+ / 0-)

    If you thought that this issue was just about Cyprus, you would be wrong.  It's about setting (or preventing) a precedent that would have represented yet another step down the insane austerity spiral and yet another German-led power grab.

    It's much more hard to forecast a good ending to the "European dream" and the vaunted Euro at this point.  They bluffed, and someone finally stood up and called them out on it.

    •  Easy there, tiger. Databob doesn't seem to be (16+ / 0-)

      implying it's just about Cyprus -- and quite the opposite. The DKos crowd is pretty sophisticated, and I think just about everyone here recognizes the broader implications and complexities of this event. It's the economic shot heard 'round the world, in the context of the ongoing plutocratic oppression.

      "Government by organized money is just as dangerous as Government by organized mob." -- Franklin D. Roosevelt

      by Kombema on Tue Mar 19, 2013 at 01:26:41 PM PDT

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      •  Banksters probably delighted with Cyprus (11+ / 0-)

        Every banker's nightmare is a run on the bank.  Cypriots were running to the banks to take their money out on Saturday to avoid the tax.  The next step would be Cypriots running to the banks for fear that their savings would vanish.  After that, Greeks, Italians, Spaniards and Irish would run on their banks, having learned that their deposit guarantees were no guarantee of their deposits if Europe's commissars said otherwise.

        The result would be an instant liquidity crisis spreading around the world at the speed of light (or at least of a Wall Street trader pursuing the mother of all shorts.)

        "Politics should be the part-time profession of every citizen who would protect the rights and privileges of free people and who would preserve what is good and fruitful in our national heritage." -- Lucille Ball

        by Yamaneko2 on Tue Mar 19, 2013 at 02:23:02 PM PDT

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        •  Banksters don't like push back (7+ / 0-)

          Man what a stupid idea this was. Bad enough that we can move $$ around at the speed of light , but given this crisis, it would be like hamster hell.

          What drives me nuts is that they've set the interest rates way too high. No one could ever dig their way out of the loans at 25-35% This interest rate policy they have does not make mathematical sense. Either they INTEND the system to fail, or they just can't do arithmetic, makes no difference. It won't work.

          A true craftsman will meticulously construct the apparatus of his own demise.

          by onionjim on Tue Mar 19, 2013 at 02:54:37 PM PDT

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          •  They need to default (7+ / 0-)

            It will be better in the long run. And even though they're not going to raid people's accounts, I bet there will still be a run on the banks come Wednesday.

            A big F U to the IMF and their member banks.

            "Societies strain harder and harder to sustain the decadent opulence of the ruling class, even as it destroys the foundations of productivity and wealth." — Chris Hedges

            by Crider on Tue Mar 19, 2013 at 03:51:51 PM PDT

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            •  Question is, will the runs spread to others? (1+ / 0-)
              Recommended by:

              Even Democrats can be asses. Look at Rahm Emanuel.

              by Helpless on Tue Mar 19, 2013 at 05:26:06 PM PDT

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              •  Yeah, this one could be rapidly developing, as (1+ / 0-)
                Recommended by:

                they say. The PIGS countries are already on fragile ground, and this could pull the rug out from under the whole Euro system. Germany had better not underestimate the impact this could have on them, either.

                "Government by organized money is just as dangerous as Government by organized mob." -- Franklin D. Roosevelt

                by Kombema on Tue Mar 19, 2013 at 10:07:17 PM PDT

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            •  They should probably take (2+ / 0-)
              Recommended by:
              neo11, Kombema

              their money out, because I'm sure the bankers will figure out some kind of austerity and they will need their money.  The bankers will figure out some way to hurt the people. . . they will take their pensions, take away funds for schools, take funds for roads and bridges, and I they will take away your money for food.  Nice bankers we have, but honestly these guys are playing with fire, I wouldn't want their karma.  The bankers may think their getting away with whatever their hearts desire, and laughing all the way back to the bank in the Cayman Islands, but I wouldn't want their karma.  It will catch up them.

              I would love to see the bankers stopped, it would prevent a lot of damage.  

              "During times of universal deceit, telling the truth becomes a revolution­ary act. " George Orwell

              by zaka1 on Tue Mar 19, 2013 at 06:59:46 PM PDT

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          •  Just a wild idea... (3+ / 0-)
            Recommended by:
            neo11, Leap Year, Kombema
            Either they INTEND the system to fail, or they just can't do arithmetic...
            Has anyone else noticed how similar all these bailouts and terms for bailouts are to the way Hedge Funds, etc.,  operate when they "buy" an ailing company?   (as in Bain Capital and KB Toys)

            They eventually load the company up with management fees and so much debt there's no option for the company but bankruptcy and laid off workers, after the "Hedge Fund" has sold anything of value in the company.

            Between the bailout procedures and the privatization of national treasures (I'm thinking Greece, in particular, here), it just seems to bear some striking similarities to me.  YMMV

        •  Sigh... yeah, disaster capitalism writ large :( nt (2+ / 0-)
          Recommended by:
          TracieLynn, Leap Year

          "Government by organized money is just as dangerous as Government by organized mob." -- Franklin D. Roosevelt

          by Kombema on Tue Mar 19, 2013 at 02:56:05 PM PDT

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