Cyprus and the ATMs

So we are hearing that cyprus was blackmailed into the plundering of the citizens deposits by  threats that 

  • the ATMs would not work
  • the banks would close
  • there would be national bankruptcy
  • there would be a plague of locusts o’er the land

All very reminiscent of Ireland 2008 when our bankers rucked up to the then ministers and said …ATMsbankruptcylocustszombiesbailoutzombiesATMS or whatever…And that worked well didnt it children. 

The threat that seems to have tipped it was the ECB suggesting that they would cut off cyprus. Yes, because expelling cyprus from the Euro would surely save it. 

Its ugly germanic hegmeonic bullying. And its not the EU I campaigned for. Oh nein. …

I have more tomorrow in the Irish Examiner 

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9 thoughts on “Cyprus and the ATMs

  1. joelghames

    I always suspected the Irish bank bailout was a really just a bailout of German banks. But what’s happened in Cyprus is ap transparent – surely voters across Europe won’t be able to ignore it. Surely.

    Reply
  2. Delarivier

    Do they seriously think the Russians will leave their remaining funds in Cyprus after this? Do they think all the British servicemen and retirees with money there won’t take every cent and put it in banks in Blighty? Or how about all those Chinese investing in Cyprus – will they hang around? In which case, the Cyprus banking system won’t last very long. They’ve just turned Cyprus into another Greece.
    Welcome to the next installment of the downfall of the eurozone. Or of the EU.

    Reply
      1. Delarivier

        Indeed. From that perspective, Ireland is Craggy Island West, Cyprus is Craggy Island East.

  3. Former Student

    Professor, your post is polemic and inappropriate for a man with your education. You are lecturing at and representing the best academic institution this country has to offer. Please bear this in mind.

    First of all, your punctuation is horrible and makes it difficult to read your post.

    Second, “germanic [sic!] bullying” is an incorrect assumption. Wolfgang Schäuble, Finance Minister of Germany, as well as the IMF were lobbying for exempting any funds not exceeding €100k in accordance with the European deposit insurance. However, the EU realized that savings are not exempt from taxes as they would be introduced in Cyprus. Having said that, the German government does not agree with the proposed introduction of a tax affecting those savings not exceeding €100k.

    Third, you are a finance lecturer and should know that there is no risk-free asset. Therefore, the assumption that deposits at a bank are risk-free is false.

    Fourth, expelling Cyprus from the EMU would have the similar effects as the proposed tax. The new Cyprian currency would be devalued to the Euro and thus decrease purchasing power. Cyprus is still an island and depending on imports.

    So please do us all a favour and do your research before publishing bullshit.

    Reply

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