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As a native of Cyprus, how does this episode make you feel?

I am appalled by the decision of the euro group. The idea of the single currency and monetary union was that we had a union of equal partners helping each other in difficult times. Here we have a big partner (Germany) bullying a small one, for what is perceived by the small one to be political reasons. And the Cypriot depositors caught in the fire are an unfortunate collateral damage.

from A Cypriot Nobelist Is ‘Appalled’ by the Proposed Bailout Bank Tax by Peter Coy, businessweek.com on March 19, 2013

So … we believed in something in the past, teh facts are demonstrating that such belief is wrong. This is more than enough to close an era.

Furthermore, any bank levy on deposits < 100K euros is definitely a default of the compulsory insurance issued by European commission and approved by many European countries.

Cyprus banks will remain closed until March 26th, source are saying.
This seems to be the 1st move after robbery rejection by Cyprus parliament earlier today.

7 days are a quite long timeframe (continue reading…)

From Egan Jones website, via zerohedge

Synopsis: Italy and its regional governments need to rollover approximately EUR183B in 2012 and EUR214B next year and is likely to experience increasing yields and restricted access without external intervention. Yields on the 10 year bonds are near 6.5%; rates have been rising despite prior ECB purchases. Future intervention by the ECB and IMF will provide some liquidity but might subordinate existing creditors. Italy cannot support all of its debt if the EU economy falters. Debt/GDP will continue to rise and the country will remain pressed. We are downgrading from ” B+ ” to ” CCC+ ” , with a neg. watch

La bocciatura del fondo salva-stati da parte di Moody’s, come multare per eccesso di velocità un’ambulanza.

— Ferruccio de Bortoli (@DeBortoliF) July 25, 2012

Eppure è tutto logico. Moody’s ha messo sotto outlook negativo tedeschi, olandesi e lussemburghesi, che dovrebbero essere tra i principali finanziatori dell’EFSF, perché troppo esposti agli scossoni della periferia dell’Eurozona. (continue reading…)

Andare ad affermare che ci sarebbe un documento a tre firmato da Spagna, Francia e Italia che invoca l’uso del bazooka (che non c’è) per calmierare i costi dei debiti di per sé è una mossa molto pericolosa. Come presentarsi sanguinanti davanti a un branco di squali affamati e arrabbiati: per quanto la ferita sia piccola l’odore li eccita e gli fa venire voglia di dare un assaggio.
(continue reading…)