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|Subject: Re: Will Cyprus do a deal?||Date: 3/24/2013 7:08 PM|
|Author: franchot||Number: 418787 of 508710|
is what Iceland did: honor deposit-insurance commitments only to their own people.
Warrl, I don't agree. Cyprus has marketed itself as a desirable banking location for expat money. Slapping punitive charges on foreign investors is going to lead to a massive exodus of foreign capital, and the negative impact on the Cypriot economy is incalculable. 70% of Cypriots work in banking. And the local population is well aware of the devastating impact of this crisis:
”People are worried not just because they could lose their savings but because they could lose their jobs too,” said Ioanna Constantinou, 24, who works in the financial services industry in Nicosia, the Cypriot capital. “I think a lot of people will be out of work soon and looking for jobs. The young people, especially, will go abroad because you can’t live with this level of uncertainty,” said Miss Constantinou, who like many Cypriots attended a British university. “The banking sector is finished, we have lost all credibility – who is going to want to bring their money to Cyprus now?”
The kind of rhetoric emanating from Cyprus is indicative of the profound resentment and incompatibility exhibited by many countries locked into the single currency. It also raises the spectre of historical conflicts which the EU was supposed to consign to the past, instead of reignite. This theme of discord is becoming more explicit as this centrally planned fiasco unravels.....
Anti-German sentiment is running at an all time high, with many Cypriots accusing Berlin of making an example of Cyprus as a warning to much larger debt-laden Mediterranean economies, including Italy and Spain, that the German taxpayer will no longer stomach bailing out ailing economies in southern Europe. “The talk among a lot of locals is that Germany has engineered this deliberately to scare off the Russians and so that they can get their hands on the LNG deposits...
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