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@joannakakissis
#Cyprus declares Tues a bank holiday to slow fallout from troika-imposed tax on deposits. Banks could close Wed too: http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_17/03/2013_488273 ...


I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 10:21:48 AM EST
eKathimerini: Nicosia declares Tuesday a bank holiday, but ECB urges for action (March 17, 2013)
The Cypriot cabinet has declared Tuesday a bank holiday, for fear of capital flight, and this may even be stretched to Wednesday, as depositors are certain to withdraw huge sums from the Cypriot banks after the haircut imposed.

Nicosia postponed from Sunday to Monday the tabling in Parliament of the bill including the measures for the Cypriot bailout - including a bank account haircut and a tax hike on interest and corporate earnings - but the European Central Bank insists on a rapid voting because there are already signs a domino effect will follow across European lenders and markets from Monday.

...

Skai radio reported on Sunday that the Bank of Greece has sent between 4 and 5 billion euros to Cyprus in order to help Cypriot banks respond to cash requirements by their clients.

The ECB "urges for action", the Bank of Greece sends €5bn to help with deposit withdrawals.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 10:25:09 AM EST
[ Parent ]
That's buying time to allow the ECB to wake up to the implications of what they're doing and reverse course.

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Sun Mar 17th, 2013 at 11:58:09 AM EST
[ Parent ]
Is there anyone there willing to admit theyre being stupid? or will it be full speed into the iceberg?

Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Sun Mar 17th, 2013 at 02:24:56 PM EST
[ Parent ]
They appear convinced the only course of action is to aim directly for the center of the iceberg at maximum speed with the intent to split the iceberg and cruise through unharmed.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Mar 17th, 2013 at 02:41:42 PM EST
[ Parent ]
Thinking more, it's the Wylie Coyote school of Financial thinking, and the cliff is well behind us isn't it

Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Sun Mar 17th, 2013 at 03:02:25 PM EST
[ Parent ]
If only we all could show Wiley's resilience.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Mar 17th, 2013 at 04:23:14 PM EST
[ Parent ]
How would you reverse on this? The public declaration has been made. Either you implement the plan and there may be a bank run or you don't implement the plan and there will be a bank run for sure.

And you cannot freeze banking in a country for more than a few days. The dice are cast.

by oliver on Sun Mar 17th, 2013 at 04:55:48 PM EST
[ Parent ]
You declare a bank holiday to deploy a credible solution to a banking problem. That's what FDR did in 1933 with his Emergency Banking Act. What they're doing in Cyprus is a non-solution, as in Argentina in 2001.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 06:00:11 PM EST
[ Parent ]
Who would believe you now?
by oliver on Sun Mar 17th, 2013 at 06:12:33 PM EST
[ Parent ]
If the solution requires belief, then it's not credible.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Mar 17th, 2013 at 06:23:07 PM EST
[ Parent ]
Then we have a fundamental problem. We are talking about fiat money.
by oliver on Mon Mar 18th, 2013 at 04:06:35 AM EST
[ Parent ]
Fiat money gains its value through the power of the state to visit unpleasantness upon those who do not hand it over in payment of obligations to banks or tax collectors.

If your fiat currency requires belief to be valuable, then you're Doing It Wrong (and about to experience a very nasty currency crisis).

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Mar 18th, 2013 at 04:35:45 PM EST
[ Parent ]
I think we agree that now it's like trying to put Humpty Dumpty together again.

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 06:30:32 PM EST
[ Parent ]
Poltical incorectness alert! The BBC uses the ending:
All the King's horses and all the King's men

made Humpty happy again

by gk (gk (gk quattro due due sette @gmail.com)) on Sun Mar 17th, 2013 at 06:37:11 PM EST
[ Parent ]
WTF?

I distribute. You re-distribute. He gives your hard-earned money to lazy scroungers. -- JakeS
by Migeru (migeru at eurotrib dot com) on Sun Mar 17th, 2013 at 06:38:24 PM EST
[ Parent ]

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