Better. Exponential curve, Cyprus!
― c'est magnifique, mais ce n'est pas le beurre (imago), Tuesday, 19 March 2013 13:54 (eleven years ago) link
every article i've read about it is a mixture of bafflement and anger. the ft seemed kind of amused at the incompetence this morning, implying that basically what happened was all the negotiators were very tired and got confused over the weekend. shops, hotels, etc. refusing credit cards apparently.
― caek, Tuesday, 19 March 2013 14:03 (eleven years ago) link
i imagine there was some idea of an ultimatum like "if you're going to make us do this, we'll do it to everyone!" and then everyone else just called the bluff and whoops.
― s.clover, Tuesday, 19 March 2013 14:35 (eleven years ago) link
http://krugman.blogs.nytimes.com/2013/03/17/the-cypriot-haircut/
― s.clover, Tuesday, 19 March 2013 14:46 (eleven years ago) link
yeah what krugman says is what I don't get about this -- why isn't this just going to make everyone feel less secure about having their money in Cypriot banks? I mean maybe some of the littler guys won't -- as a cypriot electrician interviewed on NPR said, "where would I put it?" But overall it can't be great for their banking system.
― space phwoar (Hurting 2), Tuesday, 19 March 2013 15:02 (eleven years ago) link
alphaville has some speculation this is a move to lean on russia for a heavier hand in the bailout.
― s.clover, Tuesday, 19 March 2013 16:34 (eleven years ago) link
Russia's pretty heavily exposed in Cyprus, right?
― Canaille help you (Michael White), Tuesday, 19 March 2013 16:38 (eleven years ago) link
yeah max otm in the other thread that this isn't the fait accompli that i (and others) thought it was
i guess the prospect of literal defenestration is proving a strong disincentive
― TracerHandVEVO (Tracer Hand), Tuesday, 19 March 2013 16:39 (eleven years ago) link
if anything the russians will be hit harder now, since the money still "has to be" raised
― TracerHandVEVO (Tracer Hand), Tuesday, 19 March 2013 16:40 (eleven years ago) link
weird "mouse that roared" vibe from this
― goole, Tuesday, 19 March 2013 17:20 (eleven years ago) link
Well Cyprus mps voted it down.
― Gukbe, Tuesday, 19 March 2013 18:45 (eleven years ago) link
cyprus to EU: gfy
― Mordy, Tuesday, 19 March 2013 18:56 (eleven years ago) link
Prime Minister Dmitry Medvedev said the euro zone decision seemed to be aimed at confiscating someone else's property.
"This practice, unfortunately, was well known and familiar in the Soviet period," Medvedev was quoted as saying by Russian media.
― Mordy, Wednesday, 20 March 2013 02:22 (eleven years ago) link
Oh man
― Gukbe, Wednesday, 20 March 2013 02:23 (eleven years ago) link
Plan B, say government advisers, would require state pension funds to hand over about €4 billion of their reserves. Cyprus would ask Russia for the other €2 billion, arguing that Russian companies, with an estimated €25 billion stashed in Cyprus, would then no longer face the prospect of losing 10-12% of their deposits. Michalis Sarris, the finance minister, flew to Moscow as soon it became clear the bill would not be approved.
― Mordy, Wednesday, 20 March 2013 02:27 (eleven years ago) link
that's one of the things we did <3 <3 <3 governments/banks
― mister borges (darraghmac), Wednesday, 20 March 2013 02:28 (eleven years ago) link
haha ok no touching savings but wipe out retiree's pensions sure that's legit.
― s.clover, Wednesday, 20 March 2013 03:49 (eleven years ago) link
Germany's finance minister has warned Cyprus that its crisis-stricken banks may never be able to reopen if it rejects the terms of a bailout.
Wolfgang Schaeuble said major Cypriot banks were "insolvent if there are no emergency funds".
― Mordy, Wednesday, 20 March 2013 03:54 (eleven years ago) link
cyprus should just extort russia into paying the whole bill
― Mordy, Wednesday, 20 March 2013 03:55 (eleven years ago) link
don't even touch the savings
http://static.guim.co.uk/sys-images/Guardian/Pix/pixies/2013/3/19/1363725322421/Protesters-outside-Cyprio-008.jpg
― Mordy, Wednesday, 20 March 2013 04:15 (eleven years ago) link
Marios Mavrides, a government MP and former finance minister, raised the prospect of the country becoming the first to leave the euro. He told BBC2's Newsnight: "If we cannot come up with the €5.8bn in a few days then I think we will go to the Cyprus pound. That will be the end of Cyprus in the eurozone. We're going to exhaust all other possibilities but what can we do? If we have no other solution we cannot leave the people without money."
― Mordy, Wednesday, 20 March 2013 04:17 (eleven years ago) link
wtm
― mister borges (darraghmac), Wednesday, 20 March 2013 08:04 (eleven years ago) link
to add to my panicked and unproductive waffling upthread, I'm going to Cyprus in September to see my grandmother. will be able to report back on the riotous disrepair utopian barter economy
― delete (imago), Wednesday, 20 March 2013 08:11 (eleven years ago) link
― Mordy, Tuesday, March 19, 2013 10:22 PM Bookmark Flag Post Permalink
"Thankfully," he continued to himself, stroking his siamese cat, "today we conceal it much better...muhahahaha...HAHAHAHAHAHAAAAAA!"
― space phwoar (Hurting 2), Wednesday, 20 March 2013 13:46 (eleven years ago) link
Cops at lagarde's apartment?
― mister borges (darraghmac), Wednesday, 20 March 2013 13:49 (eleven years ago) link
Heard something about that too...
― Ned Raggett, Wednesday, 20 March 2013 14:20 (eleven years ago) link
http://www.guardian.co.uk/world/2013/mar/20/christine-lagarde-flat-raided-police
yves smith gives her take:
http://www.nakedcapitalism.com/2013/03/cyprus-bailout-stupidity-short-sightedness-something-else.html
― goole, Wednesday, 20 March 2013 19:58 (eleven years ago) link
14. Even despite all the arbitrariness above, at least it solves the problem right???Absolutely not. You will haircut 10% of deposits on day 1 to make up a capital shortfall and promptly watch 30% of the rest of the deposits flee the country, leading to a much bigger capital hole that Europe will have to fill.In addition, this will severely cramp Cyprus’s main economic driver the last 2 years (selling real estate, tourism and accounting services to Russians) so any concept that it will make the debt “more sustainable” comes from a lunatic place in financial modeling. Cyprus is a 78% services-based economy. So, if you assume that GDP growth is exactly the same before and after you confiscate the assets of your clients, well, I have a solvent Cypriot bank to sell to you…This is so obviously risky, that the more paranoid commentators believe it is a deliberate plan by Germany to end up as a multi-deca-billion creditor to Cyprus to which the pledging its oil and gas reserves is the only solution. I don’t think this is the case, but boy it is getting hard to believe that they are this short-sighted.
Absolutely not. You will haircut 10% of deposits on day 1 to make up a capital shortfall and promptly watch 30% of the rest of the deposits flee the country, leading to a much bigger capital hole that Europe will have to fill.
In addition, this will severely cramp Cyprus’s main economic driver the last 2 years (selling real estate, tourism and accounting services to Russians) so any concept that it will make the debt “more sustainable” comes from a lunatic place in financial modeling. Cyprus is a 78% services-based economy. So, if you assume that GDP growth is exactly the same before and after you confiscate the assets of your clients, well, I have a solvent Cypriot bank to sell to you…
This is so obviously risky, that the more paranoid commentators believe it is a deliberate plan by Germany to end up as a multi-deca-billion creditor to Cyprus to which the pledging its oil and gas reserves is the only solution. I don’t think this is the case, but boy it is getting hard to believe that they are this short-sighted.
― Mordy, Wednesday, 20 March 2013 20:20 (eleven years ago) link
all the front pages in germany today are of the demos in cyprus where people held up pictures of merkel in nazi uniform, etc. the german elections later this year are going to be oh boy.
― caek, Wednesday, 20 March 2013 20:44 (eleven years ago) link
why don't the ppl in cyprus realize that this isn't the germans fault but the fault of an elite of ideologues???
― Mordy, Wednesday, 20 March 2013 20:48 (eleven years ago) link
doesn't sell papers.
― caek, Wednesday, 20 March 2013 20:49 (eleven years ago) link
Definitely German colonisation that isn't a paranoid fantasy
― Gukbe, Wednesday, 20 March 2013 22:02 (eleven years ago) link
Would welcome it tbh
― mister borges (darraghmac), Wednesday, 20 March 2013 22:04 (eleven years ago) link
Could do worse than bratwurst and on-time trains tbh
― Gukbe, Wednesday, 20 March 2013 22:07 (eleven years ago) link
Dunphy's demand of staunton takes new and sinister significance
― mister borges (darraghmac), Wednesday, 20 March 2013 22:11 (eleven years ago) link
http://blogs.reuters.com/felix-salmon/2013/03/22/cyprus-what-are-the-russians-playing-at/
― s.clover, Friday, 22 March 2013 21:01 (eleven years ago) link
I don’t pretend to understand Russian politics, but
*speculates furiously about Russian politics*
― Des Fusils Pour Banter (ShariVari), Friday, 22 March 2013 21:10 (eleven years ago) link
Cyprus now has a binary choice: become a gimp state for Russian gangsta finance, or turn fully towards Europe, close down much of its shady banking sector and rebuild its economy on something more sustainable.
yeah, something more sustainable - exploitation of natural resources (gas) + labor.
― Mordy, Friday, 22 March 2013 23:56 (eleven years ago) link
With Cyprus facing a Monday deadline to avoid a banking collapse, the government and its international negotiators devised a plan late Saturday to seize a portion of savers’ deposits above 100,000 euros at all banks in the country, in a bid to raise money for an urgently needed bailout.A one-time levy of 20 percent would be placed on uninsured deposits at one of the nation’s biggest banks, the Bank of Cyprus, to help raise 5.8 billion euros demanded by the lenders to secure a 10 billion euro, or $12.9 billion, lifeline. A separate tax of 4 percent would be assessed on uninsured deposits at all other banks, including the 26 foreign banks that operate in Cyprus.
A one-time levy of 20 percent would be placed on uninsured deposits at one of the nation’s biggest banks, the Bank of Cyprus, to help raise 5.8 billion euros demanded by the lenders to secure a 10 billion euro, or $12.9 billion, lifeline. A separate tax of 4 percent would be assessed on uninsured deposits at all other banks, including the 26 foreign banks that operate in Cyprus.
― Mordy, Sunday, 24 March 2013 03:47 (eleven years ago) link
http://www.zerohedge.com/news/2013-03-22/jpmorgan-inevitability-europe-wide-capital-controls
― Mordy, Sunday, 24 March 2013 03:56 (eleven years ago) link
cool zone
― buzza, Sunday, 24 March 2013 04:20 (eleven years ago) link
you know, it's remarkable how differently i feel about this savings theft levy now that it's only on accounts of 100,000 or more
― TracerHandVEVO (Tracer Hand), Monday, 25 March 2013 15:20 (eleven years ago) link
Amazing they didn't see the PR disaster of the original plan. Too many people involved who think losing €100 from your savings is bugger-all, I suspect.
― stet, Thursday, 28 March 2013 03:35 (eleven years ago) link
http://www.bbc.co.uk/news/world-europe-21771229
bulgarians are setting themselves on fire
― goole, Thursday, 28 March 2013 21:55 (eleven years ago) link
*yawn* http://www.bbc.co.uk/news/world-europe-20912616
― caek, Thursday, 28 March 2013 22:21 (eleven years ago) link
http://i.imgur.com/K9DVGLg.jpg
― Nilmar Honorato da Silva, Saturday, 13 April 2013 00:00 (eleven years ago) link
Germans otm
― privilege as 'me me me' (darraghmac), Saturday, 13 April 2013 00:07 (eleven years ago) link
rmde at german bougies staying in rental in perpetuity
― Nilmar Honorato da Silva, Saturday, 13 April 2013 00:09 (eleven years ago) link