<p>Merkel is running for reelection.</p>
<p>Per the reporting, it is fairly bluntly Germany vs. Russia. The Germans are exercising their power. You can phrase that as “they don’t want to bail out Russian criminals” or as “they prefer to dump the losses on Russians” but it boils down to German power in the Eurozone demanding foreign, non-Eurozone depositors get stuck. </p>
<p>BTW, the stupidest thing I’ve read says this plan is fine because the Russian have made more than this in interest. The idea behind that is anti-capitalist. I took your money but you should feel good about that because you still have money left.</p>
<p>“The idea behind that is anti-capitalist. I took your money but you should feel good about that because you still have money left.”</p>
<p>:) I like the above. </p>
<p>This whole capitalism, free market economy stuff is just bs.</p>
<p>The Fed is meeting today. “Please keep buying our assets. If you stop, the stock and bond markets will drop dramatically. We will give up our free market ideology (although we won’t say that publicly) if asset prices keep increasing. And don’t forget housing.” ;)</p>
<p>What did Jack Nicholson, say to Tom Cruise in that movie?</p>
<p>“You can’t handle the truth”.</p>
<p>People can’t really handle how free markets work. :)</p>
<p>Germany is still dependent on Russia for heating fuels, isn’t it? I thought that things were a lot friendlier between the two countries in the past.</p>
<p>
</p>
<p>As they tinker with the deal, the account amounts and the rates it becomes apparent that they will no longer get to the amount of money they expect to raise. So what happens to the short fall? Did they never need it? Do they expect someone else to make it up? Or are they anticipating capital to stay put for another haircut?</p>
<p>Also occurs to me that, since we are talking about billions here, that the mean old thugs (the Russians, not the EU ones) might find it more cost effective to bribe the legislators and block the deal. I wouldnt be surprised if this falls apart on Thursday.</p>
<p>The AP reports this:
““The credibility of, and trust in the banking sector depends on this,” said Demetriades, who conceded that he expects at least 10 percent of deposits to be withdrawn when the banks eventually re-open.”</p>
<p>10% is a nice round number and I dont know how they arrived at it (thumb in the air most likely) but it would be beyond the capital reserves of any of these banks. A larger withdraw would be a rational course and supposing that the 37% of foreign depositors moved their money the ECB would be forced to step in and backfill with more than the original taxation amount.</p>
<p>Well… There are rumors flying…
The ruling party of Cyprus might abstain. </p>
<p>I like this website so far… Updated often…</p>
<p>[Cyprus</a> bailout: turmoil over ‘plan B’ to spare small savers ? live](<a href=“http://m.guardiannews.com/business/2013/mar/19/eurozone-crisis-cyprus-bailout-government-vote]Cyprus”>Eurozone crisis live: Cyprus crisis deepens as MPs reject bailout terms | Business | The Guardian)</p>
<p>I hope aapl doesn’t do anything, the stock drops and the opportunity to trade bullishly gets cheaper.</p>
<p>[Seeking</a> Alpha](<a href=“Seeking Alpha | Stock Market Analysis & Tools for Investors”>Seeking Alpha | Stock Market Analysis & Tools for Investors)</p>
<p>If there is an increase in dividends, maybe option dividend plays will get juicy.</p>
<p>Just read that New Zealand is considering making depositors liable for bank bailouts.</p>
<p>No… BCEagle91, you have to provide a link for that…</p>
<p>"— Nick Sutton (@suttonnick)
Governing party MP tells BBC all 56 Cypriot MPs have decided to abstain from today’s vote (via @marklowen) #Cyprus"</p>
<p>So no one is voting for this plan???</p>
<p>EU- arrogant and incompetent</p>
<p>[New</a> Zealand considers Cyprus-style banking failure solution ? RT Business](<a href=“http://rt.com/business/new-zealand-cyprus-style-banking-failure-solution-477/]New”>New Zealand considers Cyprus-style banking failure solution — RT Business News)</p>
<p>[New</a> Zealanders Could Face Cyprus-Style Trim | Stuff.co.nz](<a href=“Kiwis could face Cyprus-style trim | Stuff.co.nz”>Kiwis could face Cyprus-style trim | Stuff.co.nz)</p>
<p>Maybe the way to go for all future bank bailouts? I don’t see how we can prop up all risky banks.</p>
<p>BCEagle91, do u think what is talked about in New Zealand is likely to happen? I can’t believe this kind if talk is out in the open. I wouldn’t have my money in a bank in New Zealand. </p>
<p>How did New Zealand get in trouble? Any idea?</p>
<p>I don’t follow NZ.</p>
<p>Here’s another interesting issue. Personally I think that the corn lobby has too much power and I think that we should dump the ethanol requirements for gasoline.</p>
<p>[Rising</a> cost of corn ethanol credits alarms Hill - Darren Goode - POLITICO.com](<a href=“http://www.politico.com/story/2013/03/rising-cost-of-corn-ethanol-credits-alarms-hill-89043_Page2.html]Rising”>Rising cost of corn ethanol credits alarms Hill - Darren Goode - POLITICO.com)</p>
<p>Well that was interesting</p>
<p>"- Another interesting development has been the fact that the finance minister of Cyprus is meeting his Russian counterpart on Wednesday. The move is said to propose a deal that includes imposing a 20% to 30% levy on Russian held deposits in exchange for equity in Cyprus’s future national gas company alongside additional strategic benefits in the sector."</p>
<p>Argbargy, that is an interesting deal. Isn’t Croatia going to need those revenues?</p>
<p>I agree with you BCEagle91.</p>
<p>Russia could always propose a military base there. Seems like the place holds some strategic value. That could get those finance ministers back to the table.</p>
<p>It’s weird in another sense that Cyprus is being put through the German wringer: Cyprus has huge gas fields. In the last few years, giant gas fields have been identified in the waters extending from Cyprus to Lebanon and Israel. The Israelis are furthest along in development. I don’t think Lebanon has done anything other than complain about Israel, which is using UN drawn boundary lines at sea. Cyprus is expecting a huge boom from gas within a decade. </p>
<p>One proposal was to translate the deposits into CD’s of some term. That makes sense given the value Cyprus seems to hold for the future. But I’m seeing more than punishment here. I’m also seeing a sense that Germany doesn’t want other to benefit. One can say that’s natural: the Germans, though their economy is doing well, feel very put upon by the failure of these debtor nations (who took all that German money).</p>
<p>So the Cyprus people pay by their bank deposits or their gas, but they pay. </p>
<p>I guess since the tax was voted down with zero yes votes, it is going to be gas.</p>
<p>BCEagle91, clever…</p>