Thursday, March 28, 2013

Bankster gangsters


Cyprus banks are open now but as was reported yesterday the exact details were a bit liberal in the numbers. Seems folks were told they could withdraw 300 euros when in fact they could only withdraw 100. None leaving the country can carry more than 1000 euros (down from 3000) and folks paying for college out of the country are limited to 5000 euros per quarter (down from 10,000).

The russians were notified of the current situation some 6 months ago and began withdrawing their money. (Nothing like insider information to protect your wealth.) So who's next on this slow motion train wreck? There's indications that Slovenia is reaching that market stress that's becoming more and more prevalent. In the last tow weeks their bond yields went from 4.5% to 6.5% meaning they are looking for money to prop up a sagging economy.

On Thursday, the German finance minister, Wolfgang Schäuble, tried to limit fears of contagion, saying Cyprus was a very special case and the EU had found the right solution for it. He said Luxembourg had a completely different business model to Cyprus and any comparison of the two would be absurd.
(You will note that the German finance minister is trying hard to protect the Luxembourg brand. Wonder how much money he has stashed there?)

As I see it this bail out thing is all a temporary band aid when the money is not going for things that would actually count like rebuilding infrastructure fixing schools and hospitals and the like. But do keep your eyes peeled as other nations suffer the same fate because poop does roll and it may be headed this way. Should the european union crumble it will bring the rest of us down with it. We are after all tied together financially with the rest of the world like it or not.

Oh and forget the tommy gun. A pen or laptop is so much neater and cleaner.  


BBC said...

It's supposed to be nice this weekend, fuck all that and go go a park.

billy pilgrim said...

buy gold!

The Blog Fodder said...

All these off-shore havens seem to be leaving their residents responsible when their offshore banks go broke. Iceland told them to FO. Why can't Cyprus etc.