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Originally Posted by Damien
They are being raided to save their own banks, and therefore maybe their savings anyway. It's a bad decision and it's good they've ditched it and are exploring alternatives but it is a bad decision caused by an impending disaster. The consequences of no action at all could result in depositors losing far more than 10%, their savings could be wiped if the two banks go under.
The way people are portraying this is that Germany wants some money and decided to bully the poor Cypriots out of their hard-earned savings. Cyprus is in serious trouble and the idea from the EU is that they'll bail Cyprus out but effectively wanted depositors to take some of the hit, to write off some of their money instead of more of it. This was a bad idea for all the reasons given (causing a bank-run, setting a dangerous precedent) but it's not really corruption.
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In the past before Countries joined the Eurozone they could deal with there currency and try to sort out there problems by devaluing or other options. Now there are so restricted in what they can do in there own country by the rules of the Eurozone that they are on a hiding to nothing.
The way i see it is that as soon as the EU started messing with the issues in Greece any country that had financial involvement with them would be just as badly affected.
The Eurozone is just one big pile of dominoes and as soon as one finally goes the lot will go and the sooner that happens the better. At the moment there is Germany and the other couple of elite countries who have all the control in the EU and they are growing off the back of the other lower cast countries, sooner or latter its going to BLOW.
Meanwhile
http://news.sky.com/story/1068020/cy...ls-amid-crisis
So the pressure is starting to be slowly exerted to acquire the YES answer the EU elite require.
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The European Central Bank (ECB) has said it will only guarantee assistance until Monday night without a new aid programme being in place.
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http://www.bbc.co.uk/news/world-europe-21875246
The EU have a lot to answer for as well in this
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Cypriot banks were among the bondholders who had to take a big "haircut" in the second massive bailout for Greece.
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and who planned that one ?