Posted on 03/19/2013 6:28:56 PM PDT by whitedog57
Well, Cyprus rejected the bank deposit levy that rattled financial markets around the world. After all, if the EU/IMF can call for such an extreme tax on a nation’s depositors, where will they stop?
March 20 (Bloomberg) — European policy makers must weigh how far to push Cyprus after lawmakers in the Mediterranean nation rejected an unprecedented levy on bank deposits, throwing into limbo a rescue package designed to keep it in the euro.
Neil Farage, the leader of the UK Independence Party (UKIP) has an interesting take on the Cyprus problem: let Cyprus declare bankruptcy and leave the banks and their depositors alone. And get your money out of the EU!
If you like an Cyprus’ 5 yr CDS, it spiked today reflecting the sudden increase in the likelihood of a Cyprus bankruptcy.
Cyprus isn’t alone. The PIGS (with the possible exception of Italy) are also seeing deposit flight.
As Farage points out, Northern Europe is sick of bailing out Southern Europe. The 10 year bond yields in Portugal, Italy, Greece and Spain rose … again … today as the prospect of similar bank depositor taxes loom.
And where do scared investor flock? The US Treasury market! (aka, “Mother green and her printing machine!”)
Between The Fed and the IMF/EU screwup, US 10 year Treasury yields fell from above 2% to 1.90%.
This is result in lower mortgage rates shortly.
Yep—the mother of all bubbles.
The entire “EU” gang will collapse.
They have run out of other peoples money!
The whole concept of the Euro was a fraudulent attempt to have a cake, and eat it too!
I hope FReepers will be curious enough to look back a few decades, and trace the history of the EU.
While the stupid, inbred, liberal socialist bastards were wallowing under the military protection of the USA, a few of their best and brightest unelected officials decided to “compete” with the USA, and their entire goal was to “defeat” US, econically.
EPIC FAIL.
“economically”
Well said.
I always resented the Euro because it was Europe's way of giving us the finger. I may live to see the Euro collapse.
Times change, and so hasn't this country. The Europeans giving us the finger today, is not as offensive to me as when the Euro was started. -tom
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