Comments on: Cyprus’s now-certain default

By: dandraka

dandraka — Mon, 28 Jan 2013 11:21:12 +0000

Thank you for the very good atricle Felix. On the same topic, you might want to check the always dependable Prodigal Greek, “Cyprus, with friends like these” ( http://theprodigalgreek.wordpress.com/20 13/01/24/cyprus-with-friends-like-this ).

My favourite line : “[...] And it is at this point that Europe, in its usual fashion, started messing this one up.”

By: johnhhaskell

johnhhaskell — Sat, 26 Jan 2013 10:06:14 +0000

Moopheus- because this is a 100% EU created situation. In 2009 Merkel said no country in the EU would be allowed to default. Cypriot banks, regrettably, took her at her word and loaded up on Greek debt, which was then haircut 70%. Now Cyprus either gets a bailout or defaults. And the “logic” offered for not bailing out Cyprus is that – get this – tax discipline in Russia is poor!

Cyprus joined the Euro in 2008 and will have defaulted in the beginning of 2013. Five years from prosperous independence to poverty, thanks to the Euro.

By: Moopheus

Moopheus — Fri, 25 Jan 2013 16:42:07 +0000

“Should it impose a haircut on Cyprus’s uninsured depositors?”

Sure, why not? What part of “uninsured deposit” didn’t they understand when they put the money there in the first place? That’s kind of what “uninsured” means–if the bank goes bust, you lose. Maybe we’d have fewer bad banks if we let some people actually experience that.