Cyprus surprise - Cypriot depositors to take a 'haircut'

ERICS_MUM

Germany must take responsibility for much of this mess. The "Club Med" countries should never have joined the Euro as their economies did not meet the convergence criteria and hence could not be expected to sustain themselves without the ability to change their interest and forex rates to suit their own needs. BUT they wanted to join the "big boys" of Europe and so they were creative with their fiscal details.

Germany turned a blind eye to all this (or maybe encouraged it) as they have always wanted the euro zone to be as large as it can be, in the hope/expectation of Frankfurt becoming a larger financial centre than London and to strengthen their aim of becoming the "controller" of not just the eurozone but of the EU on total. Germany's french poodle went along with this in the hope of a few crumbs.. How much did the IMF know about this at the time ?

Anyway, Germany has got itself in a bit of a mess. Merkel has elections coming up so she can't be seen as too lenient/generous toward Cyprus. Without German support the euro could come tumbling down and impact Germany as much as other members.

I've no idea what the answer is.

Thrugelmir

A._Badger wrote: »

It does seem to be working in Iceland.

Iceland wasn't in the EU. So could do as it wished. Basically stick its fingers up. Which it did to both the UK and the Netherlands.

Maybe a good clearout is what's required. As the current crop of politicians have totally messed up it would appear.

Thrugelmir

ERICS_MUM wrote: »

Germany must take responsibility for much of this mess.

France and Germany bent the rules themselves. The Euro has been fiscally flawed since the outset over 10 years ago. Without total fiscal integration was always a matter of time. The banking crisis appears to have uncovered the structural faults. As the fall out from Lehmans continues to ripple through the system.

Thrugelmir

ERICS_MUM wrote: »

Germany's french poodle went along with this in the hope of a few crumbs..

France and Germany were equal architects of the concept. Given it is they have battled endlessly over the centuries.

A._Badger

Thrugelmir wrote: »

Iceland wasn't in the EU. So could do as it wished. Basically stick its fingers up. Which it did to both the UK and the Netherlands.

.

And quite rightly so. If all one ever learned about Gordon Brown was his thuggish and immoral invocation of anti-terrorism laws against Iceland, that alone would be enough to consign him to the dustbin of history.

mcc100

Graham_Devon wrote: »

For me it's getting a little scary now.

It's been scary for a long time, it's just that it is easier to do an ostrich impression so as to ignore the inevitable.

wotsthat

A._Badger wrote: »

And quite rightly so. If all one ever learned about Gordon Brown was his thuggish and immoral invocation of anti-terrorism laws against Iceland, that alone would be enough to consign him to the dustbin of history.

The British taxpayer bailed out Icelandic depositors to the tune of £3.5bn. I'd hope a British PM would have an interest in getting this back.

grizzly1911

mcc100 wrote: »

It's been scary for a long time, it's just that it is easier to do an ostrich impression so as to ignore the inevitable.

At least with the tinternet we get to concern ourselves with it and see it unravel in quick time rather than a week or a month later when it has all been sanitised.

Masomnia

wotsthat wrote: »

The British taxpayer bailed out Icelandic depositors to the tune of £3.5bn. I'd hope a British PM would have an interest in getting this back.

Wasn't there a court ruling recently that decided Iceland didn't have to compensate British depositors?

A._Badger

wotsthat wrote: »

The British taxpayer bailed out Icelandic depositors to the tune of £3.5bn. I'd hope a British PM would have an interest in getting this back.

Don't be ridiculous. Brown's actions by using counter-terrorism legislation against Iceland were outrageous.

Are there no depths to which Labour tribalists won't sink?