“Cyprus no longer part of Eurozone”..May become Europe’s Lehman Bros.

cyprus-4.si

http://rt.com/op-edge/cyprus-no-longer-part-eurozone-544/

Cyprus means so little to the Eurozone’s economy that it can’t count on any bailouts from Brussels, believes Paris based economic expert Marcus Kerber.

Cypriot politicians are apparently aware and clearly show who is in charge economically speaking – it is Moscow, not Brussels.

RT: There appears to be a stand-off between the EU and Cyprus with neither side willing to make concessions. Do you expect either side to give in?

Marcus Kerber: For the time being Cyprus is having the upper hand and the blackmail policy made by the Cyprus government seems be working, although Cyprus is 100% dependent on the willingness of the European Union to bail out the island.

Let’s remember one thing: Cyprus represents 0.7% of the gross national product of the Eurozone. So it is not an essential part of the Eurozone. And bailouts are only allowed – according to the European Stability Mechanism – if country really represents an essential part of the Eurozone and its stability is vital for the stability and sustainability of the Eurozone.

We have to come up with a decision: Cyprus is no longer a part of the Eurozone. And the behavior of Cyprus politicians shows who is quite clearly in charge of the island economically speaking. It is Moscow, not Brussels, and we have to draw conclusions from that as quickly as possible.

RT: How is the Cyprus drama resonating in other vulnerable Eurozone countries – like Greece and Portugal? Could we see an investment exodus from these countries after what’s happened?

MK: No. The situation is absurd. After years and years of a policy which is a part of regulation arbitrage, and offshore paradise offers made to non-residents, which has created a bubble economy and a bubble banking community, which is truly disproportional to the gross national product of the island.

Now the EU community has to bail the island out without too much solidarity from the other European tax payers.

The Greek case has always been qualified by the EU rescuers as a unique case. Apparently it is no longer.

The Greek banks, despite a horrible situation, seem to be making bets for the affiliates in Cyprus.

Cyprus means so little to the Eurozone’s economy that it can’t count on any bailouts from Brussels, believes Paris based economic expert Marcus Kerber.

Cypriot politicians are apparently aware and clearly show who is in charge economically speaking – it is Moscow, not Brussels.

RT: There appears to be a stand-off between the EU and Cyprus with neither side willing to make concessions. Do you expect either side to give in?

Marcus Kerber: For the time being Cyprus is having the upper hand and the blackmail policy made by the Cyprus government seems be working, although Cyprus is 100% dependent on the willingness of the European Union to bail out the island.

Let’s remember one thing: Cyprus represents 0.7% of the gross national product of the Eurozone. So it is not an essential part of the Eurozone. And bailouts are only allowed – according to the European Stability Mechanism – if country really represents an essential part of the Eurozone and its stability is vital for the stability and sustainability of the Eurozone.

We have to come up with a decision: Cyprus is no longer a part of the Eurozone. And the behavior of Cyprus politicians shows who is quite clearly in charge of the island economically speaking. It is Moscow, not Brussels, and we have to draw conclusions from that as quickly as possible.

RT: How is the Cyprus drama resonating in other vulnerable Eurozone countries – like Greece and Portugal? Could we see an investment exodus from these countries after what’s happened?

MK: No. The situation is absurd. After years and years of a policy which is a part of regulation arbitrage, and offshore paradise offers made to non-residents, which has created a bubble economy and a bubble banking community, which is truly disproportional to the gross national product of the island.

Now the EU community has to bail the island out without too much solidarity from the other European tax payers.

The Greek case has always been qualified by the EU rescuers as a unique case. Apparently it is no longer.

The Greek banks, despite a horrible situation, seem to be making bets for the affiliates in Cyprus.

http://www.bloomberg.com/news/2013-03-21/cyprus-may-become-europe-s-lehman-billionaire-potanin-says.html

Cyprus is undermining trust in European banks and can be likened to Lehman Brothers Inc., whose collapse ignited the 2008 global economic crisis, Russian billionaire Vladimir Potanin said.

“Very serious” levels of capital may be taken out of the island nation, destroying the economy and hurting the European Union, Potanin, chief executive officer of OAO GMK Norilsk Nickel, the world’s biggest producer of the metal, said in Moscow today.

Cyprus is seeking to rescue its economy, the euro region’s third-smallest, after local lawmakers rejected an unprecedented 5.8 billion-euro ($7.5 billion) levy on bank deposits demanded by European finance ministers as a condition for a 10 billion- euro aid package. Cypriot Finance Minister Michael Sarris is in Moscow this week to discuss a bailout with Russia, the nation’s biggest foreign investor.

“The situation in Cyprus kind of reminds me of the situation with Lehman Brothers,” Potanin told reporters in the Russian capital. Lehman, once the world’s fourth-largest investment bank, filed the biggest bankruptcy in U.S. history in September 2008.

“Cyprus just messed up,” he said.

Russia has been offered Cypriot assets, including offshore gas resources, as the country seeks about 5 billion euros of financing, according to three Russian officials, who declined to be identified because negotiations in Moscow are confidential.

Russian companies and individuals have an estimated $31 billion of wealth in Cyprus, according to Moody’s Investors Service. Cyprus Central Bank Governor Panicos Demetriades estimates Russian deposits in the country’s banks amount to as much as 10.2 billion euros, according to an interview published today in Moscow’s Vedomosti newspaper.

———–

thanks to rev17 for the lehman brothers article link..

cyprus is the new patsy..taking over the role played by greece for the last 3 years..

whose going to save them? they wont accept the ECB terms..will it be russia or will the white knight be china?

401

About these ads

~ by seeker401 on March 22, 2013.

9 Responses to ““Cyprus no longer part of Eurozone”..May become Europe’s Lehman Bros.”

  1. “A little less conversation, a little more action please
    All this aggravation aint satisfactioning me
    A little more bite and a little less bark
    A little less fight and a little more spark”

    Connecting the dots with the massive sales and volatility bets we saw about a month ago

    “Ironically” they wrote in their papers, cyprus independence day is on march 25th.

    “It’s like rain on your wedding day
    It’s a free ride when you’ve already paid
    It’s the good advice that you just didn’t take
    Who would’ve thought… it figures

    Well life has a funny way of sneaking up on you
    When you think everything’s okay and everything’s going right
    And life has a funny way of helping you out when
    You think everything’s gone wrong and everything blows up
    In your face”

  2. they say money make a n***** act n**** rich…
    but at least a n**** n**** rich.

  3. As capital control bill hits Cyprus, rumors are stating that additional stocks are being made in supermarkets throughout the eurofarce zone

    And a bit of Farage is always good for the smile:

  4. Mabbe portugal or belgium if not slovenia. A nearly 1 billion dollar Put’s been made on euro’s drop by the end of month. Capital control’s gonna hit spain next, then italy if they ever manage to get a government, greece having already done it a few weeks ago. Ireland magically managed to hide irbc bankruptcy, france and belgium are playing with dexia, and the swiss want their gold back asap. The dominos are shaking behind the horse gate.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
Follow

Get every new post delivered to your Inbox.

Join 790 other followers

%d bloggers like this: