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

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  •  Cyprus=Cayman Islands for Russian plutocrats (2+ / 0-)
    Recommended by:
    the fan man, Rich in PA

    If they exempt small depositors, I think the 10% grab should go ahead.
    A few weeks ago Yanakovich, the Ukrainian President visited Cyprus. Seemed odd.
    He was checking on his cash stash.

    The Cyprus banks holdings are 8 times the GDP of the country.
    The 'NO' mobs are paid by the plutocrats.
    EU misplayed this one.

    •  In this case... (7+ / 0-)

      Why isn't anyone investigating Switzerland, Lichtenstein, Luxembourg (with its $1.8 trillion external debt), Gibraltar, the Isle of Man, the Cayman Islands, and the City of London Corporation?

      Seems double standards are at play, as always.

      As for the large depositors, why should they be punished if their wealth was legitimately earned?  What I mean is, if money laundering is the problem, go after the money launderers.  Duh.

      •  Not much Russian wealth has been legitimately (3+ / 0-)

        earned, to be honest.  Today's wealthy are those who had the dumb luck of being at the right place in the right time, the right time being the careless privatization of Soviet state assets, which were sold to these people for a song.

        But I've wondered the same thing - is the money being kept in Cyprus because the average Russian citizen doesn't trust local institutions?  Or is it safe to assume that all Russian money in Cyprus is the product of illegal activity?  Or is it merely a tax haven?  After all, the Obama Administration has been putting notable pressure on Western European bank havens like Switzerland and Lichtenstein to get them to release names to the IRS; multinationals can still use them to get lower tax rates on some types of income, but raw tax evasion is being cracked down on.

        If it's a tax haven, the Russian government would not be opposing the tax - they'd want the money to be repatriated and subjected to whatever taxes that are being dodged by depositing in Cypriot banks, and uncertainty and lack of trust in the Cypriot banking sector might lead to that repatriation - for the Russian depositors, many may conclude that the devil they know is better than the devil they don't know.  So I expected them to stay silent or make a non-committal remark about all parties following the rule of law or something.  Instead, they are intervening on behalf of depositors.

        "The first drawback of anger is that it destroys your inner peace; the second is that it distorts your view of reality. If you come to understand that anger is really unhelpful, you can begin to distance yourself from anger." - The Dalai Lama

        by auron renouille on Tue Mar 19, 2013 at 03:00:43 PM PDT

        [ Parent ]

      •  Their banking systems aren't in trouble. (0+ / 0-)

        What a weird, silly question.

        You know, I sometimes think if I could see, I'd be kicking a lot of ass. -Stevie Wonder at the Glastonbury Festival, 2010

        by Rich in PA on Tue Mar 19, 2013 at 05:12:05 PM PDT

        [ Parent ]

        •  Weird and silly? (0+ / 0-)

          It's weird and silly to suggest that if money laundering is one of the major problems in Cyprus, that perhaps that should be investigated there, and also, in other tax and offshore havens as well?  

          Luxembourg has an external debt of $1.8 trillion.  That doesn't seem all that healthy to me.  And do you really want to wait for a banking system to be in trouble to begin investigating potentially illegal activity?

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