Cyprus Bailout Disaster Risks New Euro Crisis

Cyprus Bailout 'Disaster' Risks New Euro Crisis
CNBC.com
The decision by the euro zone to force bank depositors in Cyprus to contribute towards a bailout, a first in the euro zone debt crisis, could hurt other peripheral nations, the euro and the global stock market rally, analysts warned. The decision ...

CNBC.com

The Cyprus bail-out: Unfair, short-sighted and self-defeating | The Economist: "Whatever the rationale, it is a mistake for three reasons. The first error is to reawaken contagion risk elsewhere in the euro zone. Depositors have come through the financial crisis largely unscathed. Now they have been bailed in, some of them in breach of an explicit promise that they can be sure of getting their money back even if a bank goes belly-up."

Mish's Global Economic Trend Analysis: Contagion-Begging Actions; Expect Bank Runs Following Cyprus Idiocy; Have Money in a Spanish Bank? Take It Out Now!: "In Cyprus, a decision was made to screw savers with a 6.75% to 9.9% "Tax" on deposits. Supposedly this move was made to "avoid unsettling investors in larger countries and sparking a new round of market contagion." In reality, the action was mandated theft, imposed by EU officials to protect senior bondholders."

$13bn euro zone bailout for Cyprus
Gulf Daily News
... ricochet on through the wider euro zone financial system. Cyprus - which accounts for just 0.2pc of the combined euro zone economy - has become the latest country to secure a debtrescue package from its euro zone partners in the three-year debt ...

more news below

Follow @ieeuueu
Suivre @ieeuueu
@ieeuueu folgen
Segui @ieeuueu
Seguir a @ieeuueu

We use cookies to enhance your experience when using this site. If you continue using the site, we will assume you are happy with this. You can change your settings at any time following the instructions here.