– Visualizing The Cypriot Deposit Confiscation (ZeroHedge, April 2, 2013):
From ‘why Cyprus could not bail out its banks’ to its failed financing needs and the road to confiscation, Demonocracy provides the ‘everything you wanted to know about Cyprus’ infograph ‘but were afraid to read’.
The big depositors will get hit harder than expected, because a lot of money left the banks right before the banks went into lock-down.
Cyprus’ Banks are the first during the last 147 banking crises that will not get a single Euro from EU to bail out the banks. Greek branches of Cyprus banks had €15 Billion in deposits, they were sold last minute to another bank, by so they will not be included in sharing the losses- obviously suspicious. Some people are offering depositors to get their money out of Cyprus for a 20% fee. Cyprus officials are throwing around slogans such as “time for responsibility‘ (to pay up) just to turn around a week later and oppose it.
With the lack of backbone, the next political move is rather unpredictable. EU officials say Cyprus is a unique case, but EU has many countries with over-sized banking sectors.
The crash of Cyprus financial sector and government bailout sentences Cyprus to a long period of recession and debt. The list of demands by EU to Cyprus for accepting the €10 billion bailout includes things such as freeze on pensions, massive tax increase on just about everything and more taxes.