Eurozone will collapse...

[Sirius]

You could not write a better Hollywood script

http://www.bbc.co.uk/news/business-21920574

European and US stock markets have fallen despite the agreement of a bailout deal for Cyprus.

The falls came after the head of the Eurogroup of eurozone finance ministers suggested that the Cyprus model, which involves a tax on bank deposits, could form a template in any future bailout.

What really cracks me up is there are people in this country who want to sign up our country to this group of snake oil salesman.

By 15:30 GMT, all major European markets had fallen into negative territory, joined by US stocks.

Markets in Europe and the US moved downwards when Jeroen Dijsselbloem, the Dutch Finance Minister who as head of the Eurogroup played a key role in the Cyprus negotiations, said the deal represented a new template for resolving future eurozone banking problems

Well done the EU your have made my day

http://news.sky.com/story/1069588/cy...-eurozone-deal

Cyprus Bailout: Public Anger At Eurozone Deal

Cypriots have reacted with anger over the bailout deal that will almost certainly plunge their country into a deep recession.

A deal has been struck to avoid bankruptcy, but the financial fallout is terrifying ordinary people.

Simos Mantzouranos runs a small printing business and is furious at what he believes is the EU bullying Cyprus into accepting a deal.

He told Sky News: "It feels like we're a small fish that has been forced into a hole only to be eaten by a big shark.


Everything is on hold now but people will take their money out of Cyprus, the Russians certainly will, so businesses will close - it's going to be a bad few years for my country.

I have said it before and i am saying it again, i would not like to be a German holiday maker in Cyprus at the moment.

[Osem]

Originally Posted by Chris

As predicted, now they know they can get away with it, they are prepared to do it again:

http://www.telegraph.co.uk/finance/f...one-chief.html

Yes the cat's been well and truly let out of the bag by this guy but it's nothing those of us with who can see beyond the end of our noses didn't already know. Apparently he's backtracking and blaming misquotes now but who on earth would believe anything these people say given what's been going on? They're living in a world of their own and if they don't change tack sooner or later they're going to be a massive reaction to their delusional centralist nonsense.

---------- Post added at 20:02 ---------- Previous post was at 20:02 ----------

Originally Posted by martyh

never a mattress expert when you need one

Our resident mattress expert ceased trading sadly...

[Qtx]

Originally Posted by Sirius

I have said it before and i am saying it again, i would not like to be a German holiday maker in Cyprus at the moment.

Have a feeling you are not referring to something as simple as booby-trapped sunbeds here...

It is common practise in many different arenas to target or bully the small fry who can't fight back and then to use the catch as precedence for larger fish. File sharing for example should be insignificant compared to europes economy but at the same time the US government seems to interfere just as much in each

It's still bugging me as to why raiding peoples accounts was deemed the only acceptable policy in this case when it wasn't considered for any other bailout plan

[Osem]

I suggest the Eurocrats forgo some of their lavish pay, perks and treats in the common good, how about that? I mean there's precious little sign of austerity around Brussells is there.

[Qtx]

Originally Posted by martyh

It's still bugging me as to why raiding peoples accounts was deemed the only acceptable policy in this case when it wasn't considered for any other bailout plan

Small country or taking Russians money? The answer will be multifaceted

Originally Posted by martyh

It's still bugging me as to why raiding peoples accounts was deemed the only acceptable policy in this case when it wasn't considered for any other bailout plan

Other countries found a way to raise their share of the bailout plan whereas Cyprus couldn't.

[Osem]

I think we should 'out' Damien as a paid employee of the EU working in its German based PR dept...

[Sirius]

Originally Posted by Damien

Other countries found a way to raise their share of the bailout plan whereas Cyprus couldn't.

Which the EU were glad of as it has setup the next bailout procedure nicely.

Originally Posted by Osem

I think we should 'out' Damien as a paid employee of the EU working in its German based PR dept...

Or as someone who tries to provide a balanced view, even when it may be unpopular....

[nomadking]

Originally Posted by Damien

Other countries found a way to raise their share of the bailout plan whereas Cyprus couldn't.

What was the Greek share for rescuing their country? Perhaps if the banks hadn't been asked to take 50% losses on Greek debt, then matbe the Cypriot banks would have been in better shape and it could of prevented all this bother.

Just wait until the Spanish banks(especially the local ones, the caja) finally reveal their true levels of debt.

The reality is that this was a difficult and complicated scenario which had no easy answers and whose cause will be reflected upon for many months. People can engage with anti-German retoric or conspiracy theories but what they cannot do is come up with an alternative answer to how to solve this case. What else could have been done? Each other outcome was imperfect, ripe for conspiracy theorists, and would have caused harm. Cyprus were never going to walk away from this in a way which would have pleased it's people.

The dye was cast when the banks collapsed. As far as I am aware none of the other countries that have required an EU Bailout had such a distorted offshore banking industry. It meant that the banks could take the entire country with it and made the politics of the bailout especially difficult.

[Osem]

Originally Posted by Hugh

Or as someone who tries to provide a balanced view, even when it may be unpopular....

That's just the Mod in you talking Herr Hugh.

Originally Posted by nomadking

What was the Greek share for rescuing their country? Perhaps if the banks hadn't been asked to take 50% losses on Greek debt, then matbe the Cypriot banks would have been in better shape and it could of prevented all this bother.

Just wait until the Spanish banks(especially the local ones, the caja) finally reveal their true levels of debt.

I believe Greece privated some assets that were they owned and could make substantial savings by having an austerity program. They had generous entitlements and low tax revenues (because people weren't paying tax) so could come up with a plan to raise their contribution. Remember though that a bunch of creditors that to write off their money as well and, as you say, that included Cyprus.

Greece though had some advantages. They were big enough to bring down the Eurozone. Cyprus were not and there was little exposure to their debt to bring down banks elsewhere, they also had the disadvantage of increasingly bailout fatigue in the other European Countries.

seems that the cypriot government have bottled it and won't re-open banks before thursday now and will place restrictions on moving money .

Doesn't matter when they re-open them they are just delaying the inevitable

Banks have been closed since March 16 but Cyprus' president Nicos Anastasiades has said they will reopen on Thursday.However, he added that the island will introduce some limits on transactions to prevent a huge outflow of money.