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View Diary: BREAKING NEWS: Parliament of Cyprus Rejects "Bailout," Bank "Haircut" (143 comments)

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  •  what again is the mess? (3+ / 0-)

    wait wait you´re too fast for me. What did Cyprus want the 10 european billion of the - now scuttled - deal for?

    refinancing state debt, isn´t it? Debt caused by the lost creditworthyness of Cypriotic banks, isn´t it? That those banks have made a shit out of their capital is not the fault of the common Cypriot. Its also not the fault of the common mid-European. Yet, the Cypriots (not the mid Europeans) stand to face a state bankruptcy over this. And so they ask anyone - Russians, Chinese, EU - for a bridge loan.

    The EU would be willing to give that, on condition that the actual culprits (the international tax haven money that fueled the Cypriot banking system) pay a significant share.

    The Russian oligarchs offer to buy out the indebted outfit called Cyprus, no oligarch loses money, and they get to own the place.

    Your choice indeed!

    The EU´s mistake was this foolish not having a lower offcut for the depositor tax, That made it stink. After all common-folks cypriots arent to blame here. So, blame the EU for this stupidity. OK .. and then? Still your choice, What do you want?

    •  You're too forgiving of the EU (5+ / 0-)

      If the whole issue is just providing "bridge loans," then please explain such measures as lowering the minimum wage in Greece to below poverty level and taxing heating oil to death, even though so few people can now afford it that revenues from this tax have actually gone down.

      If the EU wants to punish those who created the mess, punish the politicians and the banksters.  Period.  The fact that they are not doing so means that something else is going on.  Something more akin to a German-led power grab.

      Go on and continue being an apologist for them though if you wish.

      •  that was just what (0+ / 0-)

        -- if the press is to believed, which you are entitled to doubt --- the Cypriot president had offered instead of the depositor tax: wage cuts, pension cuts, general tax increases. Again, that wasnt demanded by the EU, that was offered by Cyprus instead of getting a chunk of international tax evader money.

        The EU refused that.

        It can be that I am agreeing with you about the worthlessness of Cypriots politicians? maybe? The central Europeans are mostly right-wing idiots and callous bourgeois, nothing to be proud of either.

        Yet it doesnt look to me that this is a story of a poor little island bowed under financial tyrants from Germany. It seems to me that that would be just hyperbole to hide a little island struggling at the brink of the abyss to keep at least some of its preferred business (being a capital flight destination).

        •  Well (3+ / 0-)
          Recommended by:
          marsanges, Chi, mrkvica

          Well it seems to me the president is worthless, but quite a few people knew that prior to the election.  He may have won, but the vocal minority predicted that he would go along with whatever Europe wanted, and inded, that's what happened.

          The fact that he proposed cuts to wages and pensions and also proposed tax increases - everything that has been done in Greece to disastarous results - says it all.

          By the way, please explain to me why it's perfectly acceptable for countries like Lichtenstein, Luxembourg, Switzerland, etc. to be tax havens, but not Cyprus.  Is it because it is preferred by the big bad Russians instead of by the likes of Mitt Romney?  Just curious.

          •  No no (2+ / 0-)
            Recommended by:
            Chi, mrkvica

            I dont like them either (meaning not to say that I dont like Cyprus - the opposite is the case; actually I like them far less). Luxembourg has been a bit cut to size as its directly in the EU. That was good. Liechtenstein is ever being fought over, just recently aghain when German tax services availed themselves of illegally gotten data from there.  

            The more I read your economist - this Mr Lapvitsas - the more I agree with him. I hate whats being done to Europe, the desocialization thats going on, all to preserve the well-suitedness of a certain, pretty rich upper bourgeoisie.

            I also hated the pettyness of my Dutch countrymen when Icesave went down - oh losing their capital couldnt be a fate that was in store for touchy Dutchmen! It was morally repugnant. They wanted all the gain for themselves and all the risk for the state.

            Yet; a part of the failure of the left in our continent is that they as a whole have not really developed an alternative. Merkels policy was begun by Schroeder (who I helped elect). French lefties afforded themselves a five-candidate split - with trotskyites - guaranteeing Chirac´s long power, and THAT was a crushing blow for Europe. Zapatero in Spain made a gallant stand but ultimately had no answer to the crisis that he had not caused. I feel very much for him. Yet there it is ... if I ask you "now what" then I implicitly ask myself and all of us "now what"? We need to get rid of this posse thats ruining our continent.

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