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

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  •  See here's the thing... (18+ / 0-)

    You can toss out all the random theories about motives, but in this case...

    The parliament voted for what the people wanted.

    So...  maybe they fuck the poor over tomorrow, who knows.  But for today, they did the right thing and told the banks to go fuck themselves.

    Surprise, surprise... the world hasn't blown up.  Makes me think about precedent.   Makes me think about how it looks bad for the US to not have the cojones to do what a little island in the Mediterranean is capable of doing.

    Today, the right thing happened, no matter what the shadowy motives people want to ascribe to it.

     

    I don't blame Christians. I blame Stupid. Which sadly is a much more popular religion these days.

    by detroitmechworks on Tue Mar 19, 2013 at 01:23:12 PM PDT

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    •  Some proof (28+ / 0-)

      Here's some proof that backs you up: we were told, continuously, that the "bailout" and the "haircut" that was proposed was the only choice for Cyprus, and that it had to be passed immediately to avert an imminent and chaotic bankruptcy.  

      A few days later, the Cypriot parliament doesn't bite, and what happened?  Nothing.  Cyprus is still there, they haven't gone bankrupt, and now, the story is that they have until June to find a "solution" to avoid default.

      Funny how these "deadlines" seem to shift whenever things don't go the EU's way.

      Seems to me that the EU and Merkel's bluff was called, and what this tells me is that all those threats that have been made over the past three years, which led to parliaments in Greece, Spain, Portugal, etc. passing "necessary" austerity measures under unconstitutional "emergency procedures" was just those countries falling for the same bluff.

      •  That's what struck me immediately (10+ / 0-)

        They acted like it was imperative that it be passed right now or the banks would immediately collapse. We now find out that wasn't true at all.

        I do wonder how much longer they can actually keep the banks closed there. It's been about 5 days now hasn't it? Also, I imagine the people there are itching to get their deposits out before they can come up with some other plan to confiscate them and twist enough arms to get the measure passed. They can't just keep the banks closed till a new plan is drawn up can they?

        "Compassion is the radicalism of our time." ~ Tenzin Gyatso, 14th Dalai Lama -7.88, -6.21

        by Siri on Tue Mar 19, 2013 at 01:48:37 PM PDT

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        •  Thursday? (6+ / 0-)

          Banks are supposed to reopen on Thursday, but let's see what happens.  The longer they keep them closed, the more resentment will rise.

          The EU was unmasked today.  If they've bluffed with Cyprus, they were likely bluffing the entire time with everyone else too.

          •  I can imagine a run on the banks. Unless the (8+ / 0-)

            people have assurances that the gov't will never give in to the "haircut'. But how could you ever feel confident in those assurances?

            •  If we use Greece as an example... (5+ / 0-)

              ...not very.  From 2010, the Greek people were "assurred" that no further measures would be necessary and that by implementing the austerity program, Greece would return to growth in 2011.  No, make that 2012.  No, make that 2013-14.  Now make that 2016 or 2020 or 2022, depending on who you ask.  That certainly puts my mind at ease.

            •  Hi you (3+ / 0-)
              Recommended by:
              poyma, diffrntdrummr, mrkvica

              if you don´t mind me greeting you. Technically, this was supposed to be a tax. Thats what governments get to do: institute taxes on ... things ... such as people´s wealth. Sometimes out of the blue.

              In this respect it is worth noting that the deposits in those banks are many times the value of the wole island´s economy. I. e. the deposits of actual cypriot "commoners" are only a very small part of the deposits. Much of the deposits is money that went there to avoid taxation it might have been subjected to in their places of origin. It is quite unsurprising that that money´s owners would find it "theft" if Cyprus suddenly came up with a capital tax.  And that they would raise hell about the "unjustness" of such taxation.

              that may be something to consider.

              •  This is not a tax (4+ / 0-)
                Recommended by:
                Siri, JesseCW, dfe, mrkvica

                There's no precedent for suddenly dipping into people's bank accounts in order to cover problems and losses in other sectors of the economy.

                There's also no reason to believe that this would be a "one time" thing, when:

                1) the precedent will have already been set, both for Cyprus and for the rest of the EU, and
                2) because in Greece, Portugal, etc. we've heard the same thing again and again.  "There will be no new measures."  "The measures are designed to not adversely impact the poor."  "No new cuts will be needed."  And lo and behold, every single time such words have been uttered, there's been more cuts, more austerity, and more promises to be broken.  Why, after three years of EU lies, should the people of Cyprus suddenly believe the EU and their pro-EU president?

                And please, again, explain this double standard to me: why is it perfectly okay for countries such as Luxembourg and Lichtenstein to be tax and banking havens, but not Cyprus?  How does a tiny country like Luxembourg amass $1.8 trillion in debt?  Is that not "outsized"?  Or is the fact that they are German speaking and part of the EU core the cause for the double-standard?

              •  Some bus driver who has scrimped and (3+ / 0-)
                Recommended by:
                mrkvica, neo11, Siri

                saved 5,000 Euro to take his family on holiday should be fined 300 Euro with no warning  why, again?

                income gains to the top 1% from 2009 to 2011 were 121% of all income increases. How did that happen? Incomes to the bottom 99% fell by 0.4%

                by JesseCW on Tue Mar 19, 2013 at 06:13:41 PM PDT

                [ Parent ]

      •  Paulson gave US from Friday to Monday if (1+ / 0-)
        Recommended by:
        Siri

        I remember right.  First go around no.  Then drop in stock market and yes.  Should have waited to see what the stock market would really do to the real economy.

        The US is much more suceptible to propaganda and much more used to being ruled by banksters.

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