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

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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 ]

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