The Cyrpus - Euro Crisis -- News Updates March 28, 2013

Chaos In Crisis-Hit Cyprus As Thousands Of Savers Rush To Withdraw Cash From Banks Which Have Opened For First Time In Two Weeks -- Daily Mail

* Armed police and security staff on guard over fears of a run on deposits
* Banks will be open for six hours today from 10am GMT (noon local time)
* Maximum cash withdrawal limit has been set at 300 euros (£250) per day
* Travellers leaving country can only take equivalent of 1,000 euros (£850)
* Curbs will be in place for at least seven calendar days and reviewed daily
* OAP: 'I feel sense of fear and disappointment having to queue like this'
* The stock market will remain closed today 'in order to protect investors'
* Banks shut since March 16 as politicians struggled to secure EU bailout

Ten of thousands of Cypriots scrambled to get hold of what savings they could today after the island's banks opened for the first time in two weeks amid tight restrictions on withdrawals.

There were chaotic scenes outside some banks, with one branch manager in the capital Nicosia forced to placate angry customers clamouring to get in ahead of opening.

Bank staff had turned up for work early as cash was delivered by armoured trucks, while armed police and hundreds of staff from private security firm G4S were placed on standby over fears of a run on deposits.

Read more ....

More News On Cyprus And The EU Debt Crisis

Cyprus crisis: banks reopen after tough capital controls agreed - live -- The Guardian
Cyprus banks reopen: Live Report -- AFP
Cyprus bailout: Live

Cyprus banks reopen with tough cash limits -- CNN
Patient Cypriots line up as banks reopen -- Reuters
An Orderly, if Edgy, Calm as Cypriot Banks Reopen -- New York Times
Patient Cypriots line up as banks reopen -- Reuters
Cyprus banks open after 12-day lockdown -- Al Jazeera
Cyprus banks reopen amid tight security and tough curbs -- BBC
Cyprus banks reopen – but stock exchange will remain closed -- The Guardian
Cyprus to reopen banks, impose capital controls -- Reuters
Cyprus Sets Strict Capital Controls -- Wall Street Journal
Cyprus’s Banks Open After Two Weeks as Controls Curb Panic -- Bloomberg
Cyprus banks re-open; limits on transactions -- Bloomberg Businessweek/AP
Cyprus Banks Reopen With Capital Restrictions -- SKY News
Don't Be Fooled By The Calm In Cyprus -- Sam Ro, Business Insider
Cyprus crisis: Clouds of uncertainty as banks reopen -- Paul Mason, BBC
Factbox: Cyprus imposes capital controls -- Reuters

Commentaries, Opinions, And Editorials On The EU - Cyprus Crisis

One Of The Nastiest And Most Immoral Political Acts In Modern Times -- Max Hastings, The Daily Mail

People who rob old ladies in the street, or hold up security vans, are branded as thieves. Yet when Germany presides over a heist of billions of pounds from private savers’ Cyprus bank accounts, to ‘save the euro’ for the hundredth time, this is claimed as high statesmanship.

It is nothing of the sort. The deal to secure a €10 billion German bailout of the bankrupt Mediterranean island is one of the nastiest and most immoral political acts of modern times.

It has struck fear into the hearts of hundreds of millions of European citizens, because it establishes a dire precedent.

Read more ....

Commentaries, Opinions, And Editorials On The EU - Cyprus Crisis

Why has Moscow gone silent about Russian money in Cyprus? -- Fred Weir, Christian Science Monitor
A bailout for Cyprus, a geopolitical failure for Russia -- Max Fisher, Washington Post
Moscow’s Mysterious Move on Cyprus -- Owen Matthews, Daily Beast
Cyprus bailout: Russia misses chance for natural gas -- Jen Alic, Christian Science Monitor
Cyprus bailout: Europe's love just got even tougher -- Bill Emmott, The Guardian
Cypriot bailout shows troika to be hapless incompetents -- Fintan O'Toole, Irish Times
The Real Meaning of Cyprus -- Jim O'Neil, Barrons
Cyprus rescue marks "game-changer" for Europe's banks -- Reuters
Cyprus Bailout: Everything You Need To Know Before The Opening Bell -- Forbes
Euro zone bonds stabilise but Cyprus tension persists -- Reuters
Cyprus Deal Sparks Anti-German Mood — and Defenders -- Harvey Morris, International Herald Tribune
Cyprus: Europe Rolls the Dice on its Banks -- Karl Whelan, ForbesQ&A-What next after Cyprus bailout? -- Paul Taylor, Reuters
For Cyprus, a Better Bad Deal -- New York Times editorial

The EU - Cyprus Crisis -- News Updates March 26, 2013

Could Spain And Italy Be Next? Fears That Cyprus-Style Raid On Savings Accounts Will Be Used To Bail Out Struggling Economies -- Daily Mail

* Investors jittery that both countries could need another EU rescue deal
* Spain in recession, Italy struggling to form government to clear huge debt
* EU finance chief suggested Cyprus could be blueprint for future bailouts
* Savers on island with more than £85k could lose up to 40% of their money
* ALL banks in Cyprus to stay closed until Thursday to stop run on deposits
* Cyprus will not to need to vote on deal because bank law already in place
* But Germany may have to hold vote before agreement can take effect

British savers in Spain and Italy could be next to suffer a Cyprus-style raid on bank accounts if those struggling economies fail again, it was warned today.

Investors have reacted nervously in the two countries after it emerged the Cypriot rescue deal could be used as a template for other bail-outs.

Both are seen as the most likely contenders for any future bailouts.

Spain is in recession, having suffered badly from souring property loans, and data points to a further deterioration that will hamper Madrid's efforts to rein in public finances and keep government borrowing under control.

Read more ....

More News On The EU - Cyprus Crisis

Cyprus crisis: Bank workers and students protest, as UK strives for Laiki deal - as it happened -- The Guardian
Cyprus bail-out: live. -- The Telegraph

Eurozone Chief: Personal savings accounts in Spain, Italy will be raided to save euro -- The Telegraph
Banks in Cyprus Remain Closed After Bailout -- Voice of America
Bank of Cyprus Uninsured Deposit Holders Face 40% Haircut-Central Banker -- Wall Street Journal
Cyprus businesses feeling strain as Cyprus bank shutdown enters second week -- Washington Post
">Cyprus students hold protest rally as banks stay shut -- Reuters
Cyprus banks remain closed to prevent run on deposits -- The Guardian
Cyprus to bring in weekly cash curbs. -- BBC
Head of Cyprus’s Biggest Bank Resigns -- New York Times

The Cyprus Bailout -- News Roundup March 25, 2013

Cyprus Reaches Last-Minute Deal On 10 Billion Euro Bailout -- Reuters

(Reuters) - Cyprus clinched a last-ditch deal with international lenders to shut down its second-largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians, in return for a 10 billion euro ($13 billion) bailout.

The agreement came hours before a deadline to avert a collapse of the banking system in fraught negotiations between President Nicos Anastasiades and heads of the European Union, the European Central Bank and the International Monetary Fund.

Without a deal, Cyprus's banking system would have collapsed and the country could have become the first to crash out of the European single currency.

Read more ....

More News On The Cyprus Bailout

Cyprus bail-out: live -- The Telegraph
Cyprus agrees bailout deal with the eurozone - live -- The Guardian

Cyprus reaches ‘painful’ solution with EU to secure bailout and avert bankruptcy -- Washington Post/AP
Cyprus bailout: Large deposits will be seized and second-largest bank closed in €10bn EU bailout deal -- The Independent
Cyprus bailout deal with EU closes bank and seizes large deposits -- The Guardian
Cyprus seals last-minute bailout deal -- Al Jazeera
EU Deal Salvages Cyprus, Shutters Bank for Bailout -- Bloomberg Businessweek
Cyprus bailout deal reached -- Washington Post
EU approves new bailout deal for Cyprus -- CNN
Cyprus, Lenders Reach Bailout Deal -- Voice of America
E.U. Officials Agree to a Deal Rescuing Cyprus -- New York Times
Cyprus bailout stems turmoil -- The Australian
Cyprus agrees €10bn bailout as Barroso says recovery uncertain -- Irish Times
Eurozone ministers reach bailout deal on Cyprus -- New York Daily News/IANS/RIA Novosti
Cypriots Are Suspicious, But Bailout Deal Seems Set -- NPR
IMF Will Decide On Cyprus Bailout Contribution In Coming Weeks: Lagarde -- RTT
Cyprus bailout deal 'fair': German finance minister -- Global Post/AFP
Putin says Russia could restructure Cyprus loan -- AFP
Cyprus Continues to ‘Plunder the Loot’ in Bailout, Medvedev Says -- Bloomberg Businessweek
Russia backstops Cyprus bailout despite anger -- Reuters
Cyprus Deposit Haircut is ‘Legalized Theft’ Says Russian Businessman -- RIA Novosti

Even With An EU Deal, Cyprus Is Facing Disaster

Cyprus Facing Ruin Regardless Of Deal, Islanders Warn -- The Telegraph

Cyprus may be on the verge of hammering out a deal to address its chronic debt crisis but many Cypriots fear that the island’s economy is destined for ruin regardless.

Nicos Anastasiades, the Cypriot president, and Michalis Sarris, his finance minister, are on their way to Brussels for emergency talks over a deal under which deposits of more than 100,000 euros in the Bank of Cyprus will be hit by a 20 per cent levy.

Deposits of more than 100,000 euros in other banks will be targeted by a four per cent forced levy.

Cyprus’s leaders are expected to submit to the drastic plan - which critics call daylight robbery - in return for a 10 billion euro bail-out loan to save the country from bankruptcy.

Read more ....

My Comment: The key sentence in this post is the following ....

.... Around 70 per cent of Cypriots are employed in the financial services and banking sector, a number that dwarfs the 20 per cent working in tourism.

When you start seizing the assets of individuals and companies who have trusted you with their money .... the end result will be the destruction of trust and capital flight. In this crisis .... no one in my lifetime is going to trust Cyprus as a place to park your money. For all intents and purposes ,,,, Cyprus has just destroyed it`s economy. As for the 70% of the workforce that is presently employed by the financial services and banking sector .... most of them are going to be unemployed within 6 - 12 months .... putting even more strain and pressure on whats is already a devastated and battered economy.

Deal Reached Between Cyprus And The EU To Avoid Bankruptcy

Cyprus Bailout: Deal Reached In Eurogroup Talks -- BBC

Eurozone finance ministers have agreed a deal on a 10bn-euro bailout for Cyprus to prevent its banking system collapsing and keep the country in the eurozone.

Reports suggest the deal will include a levy on deposits of more than 100,000 euros in Cyprus's two biggest banks.

The levy on deposits in Laiki (Popular) Bank - the country's second-biggest - could be as high as 40%, reports say.

The European Central Bank had set a deadline of Monday for a deal.

Laiki is also likely to be split into "good" and "bad" banks.

The deal is good news for Cyprus' small account holders, the BBC's Christian Fraser reports from Paris.

Read more ....

More News On The Debt/Financial Crisis In Cyprus

Cyprus bailout: last-ditch deal agreed - live -- The Guardian
Cyprus secures bailout, avoids bankruptcy -- AP
Cyprus Said to Reach Tentative Deal to Avert Default -- Bloomberg
Euro Finance Chiefs Agree to Cyprus Deal Paving Way for Bailout -- Bloomberg Businessweek
Cyprus strikes last-minute EU bailout deal -- The Guardian
Cyprus, Troika Reach Consensus on Key Parameters of Deal-EU Source -- Wall Street Journal
Revamped Cyprus deal to close bank, force losses -- Reuters
Cyprus told: take bank levy or leave euro -- The Guardian

Cyprus Debt - Financial Crisis -- News Roundup March 23, 2013

Cyprus Crisis: 'I'm Scared For Where We're All Headed – It Will Be A Bloody Tuesday' -- The Independent

The island’s banks will reopen next week for the first time since the crisis began. Nathalie Savaricas talks to panicked savers in Nicosia desperate to withdraw their cash


Dimitra Harilaou and her husband led a comfortable life in Nicosia. Her husband’s pension – he used to run a state prison – and the earnings from her electronic equipment store allowed the couple to put some money away in the bank for a rainy day. But after financial crisis hit the island a week ago today their savings, along with those of thousands of other ordinary Cypriots, are now under threat.

Last week, the Cypriot government caused panic when it agreed a deal with 17 eurozone finance ministers in Brussels to impose a tax of up to 9.9 per cent on deposits to qualify for the €10bn (£8.5bn) bailout designed to save the island from bankruptcy – sending people rushing to cash machines to try to withdraw their money. Though those with less that €20,000 in the bank were later exempted, the deal on the table could still see those with between €20,000 and €100,000 lose 6.75 per cent of their savings, and those with over €100,000 lose 9.9 per cent.

Read more ....

More News On The Debt/Financial Crisis In Cyprus

Cyprus crisis: MPs approve bank restructuring and solidarity fund - as it happened -- The Guardian
Cyprus MPs pass banking reforms -- BBC
Cyprus crisis: MPs back solidarity fund but postpone vote on bank levy -- The Independent
Cyprus Adopts Bank Overhaul Plan -- Wall Street Journal
Cyprus Approves Capital Controls as EU Ministers Prepare to Meet -- Bloomberg Businessweek
Cyprus adopts bank bill to split good and bad assets -- Reuters
Cyprus parliament passes bailout bills -- Xinhuanet

Debt Crisis In Cyprus -- News Roundup March 20, 2013

After Deal Fails, Cyprus Scrambles to Find Funds -- New York Times

NICOSIA — Cyprus’s three international lenders descended upon the presidential palace here Wednesday for discussions on whether and how a financial lifeline for the crisis-hit nation could be secured, as the Cypriot finance minister pressed his case in Moscow in hopes of securing further aid from Russia.

The talks were taking place a day after the Cypriot Parliament rejected a bill to impose a tax on average depositors’ bank accounts as a condition for a bailout deal.

Read more ....

More News On The Debt Crisis In Cyprus

Eurozone crisis live: Cyprus scrambles to secure new bailout -- The Guardian
Cyprus Bailout Live -- The Telegraph

Cyprus crisis deepens: Bailout rejected, banks may not reopen -- NBC
Cyprus works to find new deal to stave off bankruptcy after rejection of bank seizures -- Washington Post
Cyprus tries Plan B after MPs snub bailout -- The Australian
Cyprus loan talks in Moscow constructive, says finance minister -- The Guardian
Cyprus-Russia Talks Show Little Progress -- Wall Street Journal
Cyprus seeks Russian help as MPs reject tax raid on savers -- The Telegraph
Cyprus turmoil leaves rating agencies eyeing downgrades -- Reuters
Analysis: ECB prepared to let Cyprus go, protect others -- Reuters
All the Plan B’s for Cyprus Look Dreadful -- Hugo Dixon, New York Times

Britian Flies In Cash For It's Soldiers In Cyprus

UK Sends Plane-Load Of Cash To Cyprus For Its Troops -- Reuters

(Reuters) - Britain sent a military plane carrying 1 million euros ($1.3 million) in cash to Cyprus on Tuesday for its troops on the island in case cash machines and bank cards stop working, the defense ministry said.

About 3,500 British military personnel are based in Cyprus, which has been granted a 10 billion euro bailout. But a tax on its banks' depositors as part of the deal sparked outrage and rattled financial markets.

"An RAF (Royal Air Force) flight left for Cyprus this afternoon with 1 million euros on board as a contingency measure to provide military personnel and their families with emergency loans in the event that cash machines and debit cards stop working completely," the Ministry of Defence said in a statement.

"We will keep this under review and consider further shipments if required."

Read more ....

Update #1: MoD flies emergency cash to Cyprus for British personnel -- BBC
Update #2: U.K. flies cash to Cyprus for soldiers -- CNN

My Comment: There are 3,000 British soldiers in Cyprus .... so this airlift should not be a surprised. I also suspect that with the banks closed and ATM machines emptied, this cash is going to go far for the average British soldier.

Cyprus Parliament Rejects The Bailout Plan That Would Have The Cyprus Government Seize Bank Deposits

Cyprus Rejects Bailout Plan That Would Make Savers Pay, Raising Anxiety In Euro Zone -- Washington Post

BERLIN – Lawmakers in Cyprus on Tuesday rejected a bailout plan that would have rescued the country’s banks but forced savers to chip in for the cost, throwing down a gauntlet to the rest of Europe over the financial fate of the tiny island nation.

The plan to save Cyprus’s collapsing banks but to charge depositors for the service proved so controversial that not a single one of the 56 members of Cyprus’s parliament voted for the plan on Tuesday evening. The rejection leaves the fate of rescue plans up in the air, with other European leaders so far unwilling to step in to save Cyprus, whose bank deposits tower over the rest of its economy.

Read more ....

More News On The Cyprus Parliament Rejecting The Bailout Plan That Would Have The Cyprus Government Seize Bank Deposits

Cyprus bailout: 'Plan B' spares small savers as government defeat looms - live. -- The Guardian
Cyprus government scraps levy up to €20,000 in draft bill - Live. -- The Telegraph
Cyprus lawmakers reject bank tax; bailout in disarray -- Reuters
Cyprus lawmakers reject bill to tap bank deposits to fund bailout -- FOX News/AP
Cyprus Rejects Deposit Levy in Blow to European Bailout Plan -- Bloomberg
Cyprus Parliament Rejects Bank Deposit Levy -- Wall Street Journal
Cyprus MPs reject EU-IMF bailout tax on bank depositors -- BBC
Cypriot MPs reject tax on bank deposits -- Al Jazeera

My Comment: What an utter mess. This remains me of the Soviet Union when it collapsed and the ruble /Russian banks imploded .... I was a witness to that mess, and I am now seeing the Euro-zone positioning itself to repeat that history.

Commentaries, Opinions, And Analysis On The Bank Crisis In Cyprus

How German Fears Of Underwriting Russian Oligarchs Pushed Cyprus To Crisis -- Michael Steininger, Christian Science Monitor

Cypriots took to the streets and its parliamentarians rebelled against a EU bailout plan for the country's banks that would impose a tax on the banks' account holders.

Could the tiny economy of Mediterranean Cyprus, in urgent need of a bailout package, pull the whole eurozone back into crisis?

The answer, it became clear in the past few days, is yes. And the responsibility lies with the eurozone’s strongest economy, Germany.

For months, eurozone finance ministers have been debating how to help Cyprus, whose banks, exposed to large amounts of bad Greek debt, are in dire need of recapitalization. Cyprus is the fourth eurozone country to apply for financial aid from the European Union, the European Central Bank (ECB), and the International Monetary Fund (IMF), after Greece, Portugal, and Ireland.

Read more ....

Commentaries, Opinions, And Analysis On The Bank Crisis In Cyprus

Insight: How Europe stumbled into scheme to punish Cyprus savers -- Annika Breidthardt and John O'Donnell, Reuters
Cyprus: the rescue plan that backfired on Brussels -- Louise Armitstead, The Telegraph
The Cyprus precedent -- Felix Salmon, Reuters
Danger for Europe Lurks in Cyprus Bank Levy -- Stefan Kaiser, Spiegel Online
What the Cyprus Bailout Could Mean for Europe’s Debt -- Peter Eavis, New York Times
Deposit grab in Cyprus risks new Euro crisis -- Constantine von Hoffman, CBS
The Cyprus Debacle -- James Meek, LRB Blog
Savers across Europe will look on in horror at the Troika's raid on Cyprus -- Michael Burke, The Guardian
Cyprus a Sunny Place for Shady People -- Alex Spillius, Daily Telegraph
Russia Sees Cyprus Plan as 'Unfair' Plot to Seize Money of Its Citizens -- Andrew E. Kramer, New York Times
Is Bitter Medicine for Cyprus a Cure for the Euro Zone? -- Simon Nixon, Wall Street Journal
German Economist: 'Europe's Citizens Now Have to Fear for Their Money' -- Spiegel Online
From Lehman to Cyprus -- Floyd Norris, New York Times
The Lesson From Cyprus -- Neil Unmack, New York Times
Here's Why Cyprus Is Bad For All Of Us! -- Steve Forbes, Forbes
European press review: Cyprus bailout -- BBC
Europe is risking a bank run -- Wolfgang Munchau By Wolfgang Münchau, Financial Times
Euro Zone Moving Into Twilight Zone -- Wall Street Journal
The Botching of the Cyprus Bailout: Worse Than Lehman Brothers -- Eamonn Fingleton, Forbes
Cyprus Deposit Levy: No Panic Yet But Scary Long-Term Consequences -- Karl Whelan, Forbes
What’s next for the Cyprus financial crisis -- Market Watch
Two Contrarian Arguments for the Cyprus Deposit Tax -- Mark Gimein, Bloomberg
Euro crisis: Why a Cyprus bailout must be seen as 'fair' -- Christian Science Monitor editorial
Everything you need to know about the Cyprus bailout, in one FAQ -- Dylan Matthews, Washington Post

Fury In Cyrpus Over Back Account Seizures -- News Roundup

Cyprus Closes Banks To Stop Run Amid Fury Over Bailout -- The Guardian

Eurozone finance ministers hold emergency talks as vote on aid package in Cyprus parliament is delayed for second day

Cyprus took the unprecedented step on Monday of closing its banks until Thursday as officials scrambled to renegotiate the terms of a controversial bailout that threatens to force savers to take a €5.8bn (£5bn) hit to their deposits.

Finance ministers from the 17-country eurozone held an emergency video conference call and concluded that small depositors should not be hit as hard as others. They said the Cypriot authorities could stagger the deposit seizures, but remained firm in demanding that the overall sum of money raised remained the same. Cyprus state media said accounts with less than €20,000 may be spared.

Read more ....

More News On The Bank Crisis In Cyprus

Cyprus bailout: vote delayed as politicians scramble to change savings levy - live. -- The Guardian
Cyprus bailout - live -- The Telegraph
Cyprus reworks divisive bank tax, delays vote -- Reuters
Cyprus heads for cliffhanger parliamentary vote on deposits tax -- Reuters
Cyprus Postpones Debate on Deposit-Tax Proposal -- Wall Street Journal
Cyprus delays vote on tax raid on savings -- AP
Cyprus Delays Vote on Bailout Plan -- New York Times
Cyprus to Put Forward New Bailout Plan: Reports -- CNBC
Cypriot Outrage Over Tax Could Derail Euro-Area Bailout -- Bloomberg Businessweek
German parties slam Cyprus deal, Schaeuble deflects blame -- Reuters
Russia Denounces Proposed Cyprus Bank Tax -- Wall Street Journal
Eurozone ministers urge Cyprus to shield small savers. -- BBC
Savings account seizure plan draws fury in Cyprus. -- Yahoo News
Cyprus banks will stay closed until Thursday. -- BBC
U.S. Treasury Calls for Responsible and Fair Cyprus Solution -- Bloomberg Businessweek
Resistance in Cyprus Grows to Europe’s Bailout Plan -- New York Times
Euro zone urges Cyprus to spare smaller savers from bank levy -- Reuters

Cyprus Has Crossed The Rubicon In It's Debt Crisis

Cyprus Bailout Crisis Shakes Markets -- The Guardian

Euro and shares slide over fears that Cyprus could trigger bank runs in other eurozone countries

The euro dived and shares suffered sharp losses after a controversial bailout package for Cyprus threatened to trigger fresh turmoil in the eurozone.

Eurozone finance ministers demanded on Sunday that Cypriots pay up to 10% of their bank deposits in exchange for a €10bn (£8.5bn) bailout, prompting panic across the island as people rushed to cash machines to withdraw their savings.

Traders are concerned this could set a dangerous precedent that could trigger bank runs in other eurozone countries.

Read more ....

More News On The Financial Crisis In Cyprus

Cyprus bailout - live -- The Telegraph
Cyprus reworks divisive bank tax, delays vote -- Reuters
Cyprus Postpones Debate on Deposit-Tax Proposal -- Wall Street Journal
Cyprus delays vote on tax raid on savings -- AP
Cyprus Delays Vote on Bailout Plan -- New York Times
Cyprus to Put Forward New Bailout Plan: Reports -- CNBC
Cypriot Outrage Over Tax Could Derail Euro-Area Bailout -- Bloomberg Businessweek
German parties slam Cyprus deal, Schaeuble deflects blame -- Reuters
Stocks fall sharply after Cyprus proposal to tax deposits sparks renewed debt crisis fears -- Washington Post/AP
Cyprus deal shock sends shares tumbling, gold up -- Reuters
EU Fully Supports Cyprus President's Efforts to 'Bring Financial Stability' -- Wall Street Journal
European press review: Cyprus bailout -- BBC
Europe is risking a bank run -- Wolfgang Munchau By Wolfgang Münchau, Financial Times
Euro Zone Moving Into Twilight Zone -- Wall Street Journal
The Botching of the Cyprus Bailout: Worse Than Lehman Brothers -- Eamonn Fingleton, Forbes

My Comment: A Greek friend of mine summed it up perfectly .... voters voted in politicians who promised scores of social programs and ended up financing it with borrowed money and higher debts. And those politicians who vowed to be fiscally responsible and living within one's means .... were voted out. After a few years .... we now have this catastrophic mess.

What's my take for the future .... Cyprus is broke and they will grab this money. But what concerns me is that other countries are now looking at this situation and are probably wondering if they should implement the same thing. If I was living in Greece, Spain, or Italy .... I would be taking my money out of my bank accounts right now.

Update #1: I am not a fan of Alex Jones .... but he has been shockingly right on this one.
Update #2: Russians have been hit particularly hard by this Cyprus measure.

Will The Partition Of Cyprus Be Permanent, Or Is Peace And Reunification Possible?

Map of Cyprus Copyright 2009 © John Moss, Papillon Graphics - all rights reserved

Time Runs Out For Cypriot Solution -- Wall Street Journal (Commentary)

After April, the next phase of the dispute could be hostile partition.

Is it not a paradox, Greek Cypriot President Demetris Christofias asked in full rhetorical flight before the United Nations General Assembly last month, that Turkey should now have a seat on the U.N. Security Council? The apparent contradiction, of course, being that Turkish troops have occupied one third of Mr. Christofias's Mediterranean island country—a European Union member no less—for 35 years, despite U.N. resolutions demanding their withdrawal.

This is indeed an anomaly. But so is the fact that it was the Greek Cypriots in 2004 who opposed, and the Turkish side that supported, the U.N. plan that would have seen almost all those troops withdraw.

Read more ....

More News On The Cyprus Problem

20 years after Berlin Wall fell, Nicosia remains divided -- AFP
Rival Cypriot leaders fail to make progress on property issue -- China View
Turkey needs military rethink over Cyprus - Greece -- Reuters
New Greek Prime Minister is making Cyprus peace a priority -- Deutsche Welle
Cyprus and 'Chosen Trauma' -- H.D.S. Greenway, new York Times editorial