Outrage in Cyprus - 10% instant tax on deposits!

[floridasandy]

how is this for interesting in the twists and turns of follow the money? (zero hedge)

Now the ECB has finally published the all-country report—and it’s far worse than feared. Italian median household wealth was indeed over three times larger than Germany’s. But that wasn’t the problem. The problem was Cyprus.

Cypriot households (CY), as measured by both their median and average wealth, were the second richest in the Eurozone. Median household wealth—half the households had more, half less—of €266,900 was over five times Germany’s puny median of €51,400. Average household wealth reached a phenomenal €670,900 (that’s $872,000!), 3.4 times Germany’s €195,200, and just shy of Luxembourg’s €710,100. Rarefied levels of wealth achievable only by small countries with huge and murky banking centers, or lots of oil. Few countries in the world are in that elite club.

And Germans (DE), based on median household wealth, were the poorest in the Eurozone. (end)

of course, there is a little number manipulation here, but there is some truth to the fact that Germany really isn't in a position to bail everyone else out.

on top of that we have this news today on Greece possibly going after " war reparations":

Vast Greek war claims against Germany explode like a 'time-bomb' - Telegraph


that's a lot of nerve, I would say. , and I am sure that the Europeans are wondering what will happen next.

[Escort Rider]

Yep, World War II ended 68 years ago - a little late to be thinking about filing claims. A lot of nerve is right.

[jeremy2788]

Oh Greece knows what it is trying to do.

They hate that Germany has so much pull in the region and they are trying to change that.

[floridasandy]

maybe Greece no longer cares to be in the Eurozone, who knows? it would be provocative on their part, to be sure.

but maybe they know this "bailout" has been a sham.

here are some Eurozone statistics:
Among the Member States, the lowest unemployment rates were recorded in Austria (4.8 %), Germany (5.4 %), Luxembourg (5.5 %) and the Netherlands (6.2 %), and the highest rates in Greece (26.4 % in December 2012), Spain (26.3 %) and Portugal (17.5 %).

Compared with a year ago, the unemployment rate increased in nineteen Member States and fell in eight. The highest increases were registered in Greece (21.4 % to 26.4 % between December 2011 and December 2012), Cyprus (10.2 % to 14.0 %), Portugal (14.8 % to 17.5 %) and Spain (23.9 % to 26.3 %

Greece has falling tax revenues, and rising unemployment AFTER the bailouts-obviously requiring high social service costs, higher debt service costs, and less money available for ANY growth.

of course, anybody with a brain knows that if you have higher unemployment you will have higher social security/social need spending-but none of the money funneled (allegedly) into any of these countries for "recovery" seems to be turning unemployment around-just as our "stimulus" did nothing for employment here in the united states.

do people even realize how the IMF gets its share of the funding that it "contributes" to the "relief" effort?

To make its loan, the IMF will borrow from the U.S. Federal Reserve and the other central banks it taps and pay them interest of about 0.25% on the money; the IMF will then charge Greece about 3% on the loan.

and, of course, we don't have any extra money and the federal reserve is on a massive printing scheme which forces inflation on the world (by devaluing the currency that you hold and need)--- not just the US-- but rather hard on the countries that don't have enough per capita for the citizens to be able to pay for their food and other necessities.

IT IS DESTABILIZING the entire world's reserve currency, and we "wonder" why other countries are having their governments overthrown, or riots in the street -or maybe some don't wonder at all.

[texdav]

I ther end the real problems of Cyprus falls on voters who wanted somehting for nothig and voted that way. In the end it resulted in governamnt being too big to fail.It was greek bnbds that failed since the governamnt couldn;t pay the payments.I the case of Cyprus 40% of their GDP was based on banking and investment mostly ralted to buy greek bonds which bondholders took haircuts on. Not even enough left of that Crpus holdings to their share of bailout.Howe ist annouiced that Cyprus needs 5 billion more than what was estimated.Still they and Greece are borrowing money because no knows of a way they can get growth to oay for the bailout in time alloted.