This just in – Cypriot parliament rejects bailout package, not a single yes’-vote.
Things will start to get interesting – is the Cypriotic government going back to the negotiation table or do they say ‘Sod off’ to the Troika? There has been heavy pressure on Cyprus from at least the IMF and the ECB, not to mention Germany. Like I said yesterday, it seems that Germany is becoming more like an insecure bully than a benevolent hegemon, and here are some links to illustrate that.
‘Cyprus – been there, seen that.’ Rather cynical piece, especially regarding the role of Germany.
‘Cyprus – it is not about the numbers’ About the meaning for the Eurozone and German elections of Cyprus.
‘Germany Just Taught The Rest Of Europe Some Tough Lessons About Who’s Really In Charge’ This is unfortunately a very clear message.
UPDATE: Check this article on A fistful of Euros for a very comprehensive overview of the matter of the Cyprus-policy rampage itself and all kinds of political validations. I share the conclusion. New Commission now!
http://twentycentparadigms.blogspot.fi/2013/03/is-euro-geddon-nigh.html There is a lot to say about Cyprus’ deal, and haven’t had time to digest all the aspects of the deal. But as said in this fairly comprehensive article it does not look good, in particular because again the banks are not dealt with although many of the eurocrisis’ issues originate from excesses in banks – German, French, Dutch, Irish, Spanish etc. The fact that banks become zombie banks propped up by ECB loans is apparently not bothering the EU elites. I suppose soon people will just hide money in socks again, to escape the unfair treatment deposit holders get, likely every time from now on. Oh and Moody’s or Fitch warned some time ago, in relation to SNS Reaal that it would reconsider the credit ratings all over Europe in case depositor’s money would be confiscated.
Posted in A Fistful of Euros, Economy, EU, Eurocrisis
Tagged A Fistful of Euros, bail-in, bank run, Banking crisis, Cyprus, Dispose this Commission!, EU, Eurocrisis, eurozone endgame, Fitch, Moody's, Olli Rehn, SNS Reaal