Cyprus Has…

Cost of Cyprus bale-out rises to €23Billion; surely this is unaffordable now?

http://www.bbc.co.uk/news/business-22106194

ECB says first Cyprus bailout plan ‘not smart’

http://www.bbc.co.uk/news/business-22024610

“
The finance minister of euro zone member Cyprus, Michael Sarris, resigned Tuesday as residents and bank depositors take stock of a one-time levy on their bank balances that is expected to range from 40 percent to 60 percent, according to a published report.

Bloomberg News said Sarris, 66, who brokered a rescue of Cyprus’ collapsing financial system, told reporters in Nicosia he resigned. Sarris has been the chairman of Cyprus Popular Bank Pcl, also known as Laiki Bank, the second-largest bank in Cyprus and an organization that is being shut down in the restructuring of the island’s finances.

“With regret, I received today teh resignatino of the Finance Minister Michael Sarris,” Cyprus President Nicos Anastasiades said in a statement. “I want to thank him.”

The simple answer, is for Germany to buy Greece, and let them sort the mess out:rolleyes:They could call it Germany Mk 2.
I wonder who will be next?.

Jim.
Lincoln .7

Well they are the paymasters and their Chancellor knows how disaffected her voters are.

I don’t know the detail, but hand-wringing by the Germans I suspect?

Meanwhile, the Germans pretty much called the shots in terms of the bale-out.

There was much hand-ringing over this in the heat of the Greek crisis last year but I do not know what the upshot was, if any…..

Not Cyprus, I know, but another country involved in the predictable and inevitable mess of the crassly lunatic Euro ‘experiment’ is Greece. This is an interesting and enlightening (for me!) read:

http://www.warhistoryonline.com/war-articles/germany-should-pay-its-long-overdue-obligations-to-greece-a-quick-guide.html

Re 141

Don’t hold me to account for your inadequacy of understanding.

So, not your last comment, then….;):rolleyes:. No inadequacy, because you failed to make your case. But not to worry it’s moved on now…..

Re 141

Don’t hold me to account for your inadequacy of understanding.

Yes, That’s about it! In answer to your first question, I don’t think that there is any option. Especially if we don’t look at what is happening in Cyprus in isolation.

Unfortunately it is no longer possible to look at Cyprus in isolation; because they share the same currency the economic stability of Cyprus (or lack of it) is intrinsically liked to that of the other Eurozone states (and by default the United Kingdom).

I’m sure the CEB will have to step-in with some form of financial slight-of-hand; maybe QE but even this takes several forms and it is never quite as simple as ‘printing money’ makes it sound. Even ‘printing money’ means somebody has to pay.

The outlook isn’t very good for the Cypriot people but then I’m not sure that Cyprus nor many of the other EU economies that are in dire trouble should have had any expectation to be where they are economically without being part of the Euro. It seems to me that far too much money has been borrowed within the Eurozone by those that wouldn’t otherwise have been able to borrow it except for the illusion that they were all part of the ‘Euro economy’ and the loans were guaranteed by the guarantors within that ‘Euro economy’.

Well, hard times are upon us, loans cannot be repaid and so suddenly being in the position of guarantor isn’t looking so clever! 😉

Again, it is not possible to look at Cyprus in isolation. I am sure that the Cypriot banks that made the ‘risky’ loans to the Greek banks had to borrow the money from somewhere; they probably borrowed it from banks that wouldn’t make such ‘risky’ loans to Greece themselves…

…banks in Britain, France and Germany.

If the Cypriot banks go bust, how many of the banks that lent to them will follow?

Apparently Cyprus may still go t*ts up. Do you know when I heard this story from the start a week or so ago I did wonder whether if would be the one. I rather hoped it might and it may be yet…

You rather hoped it might; why would you say that? :confused:

That’s my last comment. I’m about as exhausted as the EU treasury !

Well that’s a relief – you certainly know how to go round in circles without addressing your original and erroneous point. .:eek::)

Their greatest hope of raising the funds lie in outside investment; Russia, Turkey, Mars for all I care. But I can tell you now France and Germany won’t budge on the terms so we’ve got a stalemate, and the country’s 72 hours away from collapse.

I was just looking at the news show on the beeb.
Apparently Cyprus may still go t*ts up.
Do you know when I heard this story from the start a week or so ago I did wonder whether if would be the one.
I rather hoped it might and it may be yet.

It’s turned in one week to a cash only society it seems.
What next, wheelbarrows of folding to buy a loaf..??
Barter..?

It never ceases to amaze me just how gossamer thin the pretty facade of civilisation really is.

Happy days and good night my children.
Sleep tight.
A.

Re 134

Creaking Door

Yes, That’s about it ! In answer to your first question, I don’t think that there is any option. Especially if we don’t look at what is happening in Cyprus in isolation.

The financial future is looking distinctly precarious. Hope I’m wrong.

Re 135

Charlie

Let me put it to you another way. I’ve written it three or four times already. The ECB, the IMF and the Cyprus Govt. will establish Cyprus’ financial future. After the furore surrounding the restructuring of Greece’s debt, the ECB and the IMF will be at pains to have the Cyprus Govt. on board. I do not think that we will see a repeat of the Greek debacle and all the acrimony that engendered.

All of which makes the consent of the Cyprus Govt. crucial to any solution. The EU hasn’t got any money other than what the members give it. So, if as seems to be the case, the EU haven’t got any spare cash, to solve the Cyprus problem, they’ll have to print it eg. QE.

That’s my last comment. I’m about as exhausted as the EU treasury !

Well of course that is a quite different matter. If they decide to leave the Euro they will have their own currency, their own central bank and they can set their own interest rates and do what they like!! ( Can’t you just hear all those Germans pining for the return of the Deutsch Mark??:diablo:)

There was a Cypriot chap on Newsnight (must be lies it’s the BBC…) the other evening who told Paxman that they would consider printing Cypriot Pounds if a bail out didn’t materialise.

Who he was and thus whether the comment carried any official significance i unfortunately didn’t catch.

So, much as it is a strange occurance for anything johnny green says to be based in reality, QE could be relevant to Cyprus if they exit the Euro.
Doing that however would result in mass withdrawal of the dodgy Russki deposits so whilst it would “save” the Cypriots cash in the banks it would destroy their banking industry anyway.

This is an interesting article.

http://blogs.telegraph.co.uk/finance/jeremywarner/100023510/cyprus-should-do-what-iceland-did-and-just-conviscate-the-russian-money/

“Cyprus should do what Iceland did, and just confiscate the Russian money”

So are you suggesting then that the ECB should embark on a major QE programme for the Euro?

Because it sounds like you are saying that they’re damned if they do and damned if they don’t.

I think John still, thinks that Cyprus can print its own Euros. At least he hasn’t so far accepted that they cannot. Other than that I am not sure what his post has added to the debate – we all know what QE is and how it works.

So are you suggesting then that the ECB should embark on a major QE programme for the Euro?

Because it sounds like you are saying that they’re damned if they do and damned if they don’t.