After all, it's just a little island somewhere in the Mediterranean.
But what's going on in Cyprus could actually matter — not just to the rest of Europe, but to the rest of the world.
Here's the short version of what's happening:
Cyprus's banks, like many banks in Europe, are bankrupt.
Cyprus went to the Eurozone to get a bailout, the same way Ireland, Greece, and other European countries have.
The Eurozone powers-that-be gave Cyprus a bailout — but with a startling condition that has never before been imposed on any major banking system since the start of the global financial crisis in 2008.
The Eurozone powers-that-be (mainly, Germany) insisted that the depositors in Cyprus's banks pay part of the tab.
Not the bondholders.
Just wait until China does this to us.
ReplyDeleteWe are next. Time to close my savings account.
ReplyDeleteThis is the first domino to fall in the world plan. If it goes well there... They are not known as the world bank for no reason.
ReplyDeletesome of the major countries who have been part of the Euro bailout have no more money to give. This is a trial run of the new plan in a small place. They are floating this as a new way to bail thing out. The world SHOULD be watching.
ReplyDeleteguess what they been floating the same things here, a surcharge on every bank transaction you make? forcing you to use 401K funds to support worthless government bonds. For those who say it can't or won't happen here keep drinking the kool-aid. These current fools in office will clean you out!
ReplyDelete