High Noon in Cyprus
by Stephen Lendman
Bankers plan pillaging Cyprus.
The Wall Street Journal said "Cyprus braces for a long weekend." It's not over 'till it's over. What's ahead bodes ill for Cypriots.
Predatory bankers assure it. So do Eurocrats. Corrupt politicians go along. Financial tyranny is policy. All Western societies are affected.
An unnamed Cypriot official said "We are waiting for a messiah to come and save us, and of course, there is none."
On March 17, Pimco's Mohamed El-Erian headlined "A Muddled and risky approach to Cyprus," saying:
Implementation challenges are huge. They'll "undermine (rescue efforts) and may lead to negative side-effects."
Eurocrats exceeded the Greek precedent. Doing so "extended burden-sharing further."
Cyprus "r(an) out of easy options." Irresponsible bankers bears full responsibility. Taxing depositors is "highly regressive. (It) undermines the traditional construct of deposit insurance schemes around the world."
Ideas proposed "risk becoming part of the problem than a solution for Cyprus."
"Private liquidity implosion and more acute credit rationing" may follow. So may "disruptive political backlash and social unrest."
Global investor faith will be tested. Political surprises aren't welcome. Troubled Cyprus heads from bad to worse.
Events are fast-moving. On Friday, the Financial Times headlined "Cyprus and EU locked in bailout talks." Another rescue plan was rejected.
A ruling Democrat Rally party official said a new one proposed an alternate depositor haircut. Cypriot finance minister, Michael Sarris, said taxing bank deposits is "clearly on the table."