Cyprus and the ATMs

Mar 17, 2013

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So we are hearing that cyprus was blackmailed into the plundering of the citizens deposits by threats that

the ATMs would not work
the banks would close
there would be national bankruptcy
~~there would be a plague of locusts o’er the land~~

All very reminiscent of Ireland 2008 when our bankers rucked up to the then ministers and said …ATMsbankruptcylocustszombiesbailoutzombiesATMS or whatever…And that worked well didnt it children.

The threat that seems to have tipped it was the ECB suggesting that they would cut off cyprus. Yes, because expelling cyprus from the Euro would surely save it.

Its ugly germanic hegmeonic bullying. And its not the EU I campaigned for. Oh nein. …

I have more tomorrow in the Irish Examiner

Comments

9 responses to “Cyprus and the ATMs”

anonemiss

March 17, 2013

There is currently a plague of locusts in Egypt just across the sea 😉

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otto

March 17, 2013

It is in fact the EU you campaigned for. But you were under other illusions.

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1. brianmlucey
  
  March 17, 2013
  
  i wish i could rebut that… i really do….
  
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Citizen Keane

March 17, 2013

Martin Armstrongs Blog is worth following. It is an amazing fact that 70% of all taxes collected go to pay interest on borrowings. How stupid is the idea that National Debts need never be paid off/written off?
http://armstrongeconomics.com/2012/11/20/liquidity/

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joelghames

March 17, 2013

I always suspected the Irish bank bailout was a really just a bailout of German banks. But what’s happened in Cyprus is ap transparent – surely voters across Europe won’t be able to ignore it. Surely.

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Delarivier

March 17, 2013

Do they seriously think the Russians will leave their remaining funds in Cyprus after this? Do they think all the British servicemen and retirees with money there won’t take every cent and put it in banks in Blighty? Or how about all those Chinese investing in Cyprus – will they hang around? In which case, the Cyprus banking system won’t last very long. They’ve just turned Cyprus into another Greece.
Welcome to the next installment of the downfall of the eurozone. Or of the EU.

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1. brianmlucey
  
  March 17, 2013
  
  Do they care? Cyprus, from Berlin, is a small country far away of which they know little…
  
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  1. Delarivier
    
    March 17, 2013
    
    Indeed. From that perspective, Ireland is Craggy Island West, Cyprus is Craggy Island East.
    
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Former Student

March 18, 2013

Professor, your post is polemic and inappropriate for a man with your education. You are lecturing at and representing the best academic institution this country has to offer. Please bear this in mind.

First of all, your punctuation is horrible and makes it difficult to read your post.

Second, “germanic [sic!] bullying” is an incorrect assumption. Wolfgang Schäuble, Finance Minister of Germany, as well as the IMF were lobbying for exempting any funds not exceeding €100k in accordance with the European deposit insurance. However, the EU realized that savings are not exempt from taxes as they would be introduced in Cyprus. Having said that, the German government does not agree with the proposed introduction of a tax affecting those savings not exceeding €100k.

Third, you are a finance lecturer and should know that there is no risk-free asset. Therefore, the assumption that deposits at a bank are risk-free is false.

Fourth, expelling Cyprus from the EMU would have the similar effects as the proposed tax. The new Cyprian currency would be devalued to the Euro and thus decrease purchasing power. Cyprus is still an island and depending on imports.

So please do us all a favour and do your research before publishing bullshit.

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