Post: #1

So, it looks like under this EU deal that Cyprus will have to close its 2nd largest bank, and they will not tax deposits under $100K to receive aid.

For some reason the markets are "cheering" this news. Am I stupid? or isn't it more economically destructive to tax "larger" accounts, then it is "small" accounts?

Now on to Germany. There are two ways for Germany to be stronger:

A) Bail out many of the weak EU countries, impose sanctions, and keep the system alive.

This could work, it hasn't worked much so far, but doesn't hurt anyone too hard in the short run.

B) Let all these socialist countries that can't manage themselves collapse. Being the last country standing, your power in Europe will strengthen immensely. If anything you can start increasing your influence in Europe, currency, real estate, etc etc. And when they get back on their feet in 2-5 years you will be insanely powerful.

Of course we all know they are going to keep bailing everyone out. But isn't Cyprus going to need another bailout in another year or so??

Post: #2

Letting the country collapse won't make Germany stronger.

Ther are two sides to banking, and everyone here is abrogating the side of the lender/banker/stronger party.

it's all fine and dandy, particularly to the financially illiterate that Austrian economics appeals to, but a borrower is not meant to self-assess their credit worthiness.

That actually is a bankers role, to be the one who assesses credit worthiness, if they aren't doing that, then what are they getting paid for?

So whilst you bemoan Greeks, Spanish, etc for gettig money for loans they can't pay back...that failure to pay back is also meant to be a forfeiture on the behalf of the lender, with them having the ability to take possesion of the secured item against the loan. letting everything collapse will mean everything becomes worth near zero, ith the only avenue for germany being taking possession of assets on a near sovereign scale.

The latter is unlikely to happen for nationalistic reasons.

The cyrpus bailout is different reasons. Launderd Russianmafia money in the banks as lent out to Greece. Now they Greeks can't pay it back, this money should forfeit, and they don't want that, so they are trying to muscle cypriots to make up the short-fall.

Post: #3

Isn't this gng to take a couple GDP's away from Greece? and Russia?

Post: #4

it shouldn't... but we aren't living in rational times that's for sure.

As far as Russia goes, it'd be best to tell them to get f*cked, default on all their savings and get some German security for protection.

What legal recourse do the Russians have... prove where they got the money from?

Greece is already gone, and on the brink of civil war, they can't get much lower.