Comments on: Cyprus controls an “omnishambles” http://blogs.reuters.com/hugo-dixon/2013/03/28/cyprus-controls-an-omnishambles/ Mon, 18 Apr 2016 14:55:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: rwmccoy http://blogs.reuters.com/hugo-dixon/2013/03/28/cyprus-controls-an-omnishambles/comment-page-1/#comment-601 Fri, 29 Mar 2013 07:08:18 +0000 http://blogs.reuters.com/hugo-dixon/?p=551#comment-601 The operation was a complete success, but unfortunately the patient has gone into a coma and will be on life-support for some time.

Hugo Dixon makes some good points about how depositors will react to having their money trapped inside Cypriot banks. Whether this leads to Cyprus staying in or out of the Eurozone is an open question because of all the sacrifices that the government of Cyprus has made in order to stay in. Of course, the people of Cyprus may have very different feelings about this and are not likely to forgive or forget how they were treated by the Eurocrats in Brussels.

What is so appalling is that Cyprus asked for a bailout eight months ago, and this was the best plan the European commission could devise. A few more debacles like this, and it won’t be just little Cyprus that will leave.

In the meantime the Eurozone authorities have insured that no-one will be joining the Euro common currency zone for the foreseeable future. It has become quite clear that the disadvantages could easily outweigh the benefits of such a union. I am certain there are diverse elements in the UK and other EU member countries which have kept their own currency that are now breathing a sigh of relief — thinking ‘it could have been us.’
rwmccoy

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By: bryanX http://blogs.reuters.com/hugo-dixon/2013/03/28/cyprus-controls-an-omnishambles/comment-page-1/#comment-600 Thu, 28 Mar 2013 22:54:43 +0000 http://blogs.reuters.com/hugo-dixon/?p=551#comment-600 In January and February the Pluto-Kleptos extracted 2.1 Billion from Cyprus banks. The largest outflow in 3 years.

The game is rigged.

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By: Maunsell http://blogs.reuters.com/hugo-dixon/2013/03/28/cyprus-controls-an-omnishambles/comment-page-1/#comment-599 Thu, 28 Mar 2013 22:51:19 +0000 http://blogs.reuters.com/hugo-dixon/?p=551#comment-599 So a more “compliant” ECB should let called “investors” in Cyprus banks run off without any responsibility while the ECB take over their dud assets and related risk?

And just to make it easier for these people to run off why doesn’t the ECB (in its infinite wisdom no doubt) just lower its collateral standards and allow any type of garbage to be posted as collateral in return.

WELL THIS JUST SOUNDS DANDY. AND WHO ULTIMATELY PAYS FOR THIS – Well of course all EU CITIZENS will as their currency will have been devalued by the ECB printing Euros to bail out Cypriot bank account holders.

But then again when does society have a say in what the unelected “Masters of the Infinite Balance Sheet” at the ECB do.

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By: yPapa http://blogs.reuters.com/hugo-dixon/2013/03/28/cyprus-controls-an-omnishambles/comment-page-1/#comment-598 Thu, 28 Mar 2013 14:44:29 +0000 http://blogs.reuters.com/hugo-dixon/?p=551#comment-598 So, simply put, Cyprus is for all intents and purposes out of the Euro already. I say bite the bullet and get of Dodge ASAP. At least with the devaluation you make the tourist industry more competitive and bring your current account closer to balance. We’ll be a lot poorer to be sure. But if we stay in the Euro, we’ll end up poorer AND owe a bucket-load of money. Plus, one less headache for the Eurozone.

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