Thanks to all the visitors who came and appreciated the maverick thoughts yesterday.I am sharing the links of articles that where displayed on the board for your convince :
Your thoughts feedback and remarks are most welcome .
CEO of the Saxo Bank Lars Seier Christensen express his opinion it was remarkable :-
The real problem is not Cyprus, it is the Euro.
After a few disturbing weeks, I would like to wrap up my comments on Cyprus and, hopefully, turn to other issues going forward. It is astonishing that a EUR 10 billion bailout can keep the world spellbound for so long. But then again, while the amount is not staggering, some of the implications are mind-blowing.
That a small economy can be destroyed over a weekend is in itself very scary. But Cyprus’s fate was basically sealed when the Troika revealed its first version of the bailout package. Continue reading “The problem is not Cyprus. The problem is the Euro.”
There are many lessons to be learned from the Cyprus bailout, and plenty of implications for how things may develop in the future. We list 25 here, but there are more.
Lesson 1: Do not underestimate the ability of the eurozone to do the right thing – after all the alternatives are exhausted;
Lesson 2: Eleventh hour deals can often lead to mistakes and have unintended consequences. The decision to haircut depositors under EUR 100k was a pothole the Troika fell into. It questioned the integrity of the EUR 100k deposit guarantee;
Lesson 3: The disappearance of Mario Monti from the scene has reduced the influence the South has on decisions about the future of the euro; Continue reading “25 Lessons from CYPRUS”
There has been a lot of negative comment about the Cyprus deal. That is understandable: you can reasonably argue that it will produce crippling austerity; that it is ridden with moral hazard; that it will create a bank run across most of Southern Europe. But what you can’t argue is that it was unexpected.
Too understand the deal in-case If you are in Cyprus :
* You can put money into your bank, but you can’t get it out again. At least you can, through ATMs, but only in very small amounts.
* If you have money on deposit, you can’t take the money out and close the account. And if it’s a time deposit, when it reaches the end of its life, you can’t have the money to spend. You have to roll it over into a new deposit. Continue reading “Cyprus Reaction”
Three months ago, Yanis Varoufakis explained Europe’s bogus growth pact and the papering over the cracks that was being done by the IMF and ECB, “The idea here is that, yet again, the Eurogroup-ECB-IMF alliance is not ready, politically, to reveal the truth to its various constituencies.” He was, obviously, correct. This weekend, in a brief BBC Radio interview (below), as Cyprus erupts and brings the European circus back into town, Varoufakis exclaims, “every bailout agreement, beginning with Greece’s in May 2010, seems less logical and more toxic than the previous one.”
In three minutes, the Greek economist illustrates how the leaders are laying waste to the supposed pillars upon which the European Union was founded. Continue reading “Cyprus is the Homage”