Daily Archives: March 21, 2013

Archives March 21, 2013 posted by

How did the geniuses who designed this bailout get it so wrong?

COULD a failed bank robbery in Cyprus cause the collapse of the euro? It’s hard to imagine how anything that happens in Cyprus, with less than one million people, could bring down the common currency shared by three hundred million Europeans, but there are few human behaviours as infectious as a run on the banks.

Strictly speaking, the Greek-Cypriots are not having a bank run, because their banks have all been closed since last Saturday and the cash machines will only give out 500 euros per customer. But there would certainly be a nationwide bank run if they reopened the banks without strict limits on cash withdrawals and transfers overseas.

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Archives March 21, 2013 posted by

Bailout meeting: the long night between Friday and early Saturday morning

 

THERE is nothing more undignified than the sight of a bankrupt person begging for assistance. The contrasts between the cosy and sometimes sumptuous living before the event and the state of helplessness and destitution soon after are stark indeed. While generous persons may come forward to offer their help, they know in their heart of hearts that lending money to a bankrupt person is very risky and is not unlike saving a drowning person, which may cost you your life.

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Archives March 21, 2013 posted by

American planes at Larnaca for Obama Israel visit

US military aircraft arrived at Larnaca Airport on Tuesday night. Hermes Airport press office neither confirmed nor denied the reports despite the planes being visible to the public. US president Barack Obama is visiting Israel in the coming days and according to sources at the US Embassy, it is standard procedure for American aircraft to be on stand-by in the region. 

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Archives March 21, 2013 posted by

Deposit haircut back on the table: reports

THE government ordered banks to stay shut until next week as the proposal to tax deposits – at lower rates – was back on the table to avert a financial meltdown.

“We don’t have days or weeks, we have only hours to save our country,” ruling DISY deputy chairman Averof Neophytou told reporters as crisis talks in Nicosia dragged into the evening.

Reports suggested the government may submit a bill tomorrow proposing a haircut on deposits but at lower rates than legislation that was rejected by parliament on Tuesday.

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