I have held off writing about the Cyprus crisis until, I hoped, the smoke clears. That now seems unlikely in the near future indeed the opposite seems to be happening from which I deduce nobody knows what was agreed. The best account of what has happened so far that I could find was in the Wall Street Journal, far and away the best financial paper in the world, click WSJ to read it. It is a long piece but well worth a good read. I miss my WSJ, |US edition, which I used to read assiduously at the BoE.
Farage has had a good Cyprus crisis. There is an excellent piece under his name in today's Telegraph, click DT to read. Farage is absolutely correct. The EU panic is as it was in Greece, Portugal, Spain etc, all about saving their beloved Euro. They don't care about the millions of young lives they are ruining in these countries. They will eventually end up like Mussolini strung up from a lampost but not before they have reduced their own, and everbody else's country, to economic and social ruin.
Farage was also excellent last night on Newsight where on his new hot topic of immigration he recently pinched from the BNP, he annihilated the useless ex Lab female minister and A N Other, a man so non descript I cannot recall his name. Times are good for Mr F and he is proving Napoleon's dictum that luck trumps brains in politics. There is one cloud on Nigel's horizon I hear there may be a pending bitch fight on the electronic media for his favours.
It is interesting to have so many colourful flawed heterosexual politicians like Nigel and BoJo dominating the UK media to say nothing of Berlusconni in Italy. That is just the way to get people interested in politics. Men who can flaunt their failings and still triumph
Its a pity Flashman Cameron cannot live up to the fictional Flashman. His reheated speech on immigration etc yesterday just showed him up as a not very good PR man selling a deeply flawed product. No wonder so many Tories want to ditch him asap. The only fictional character I can compare Millipede to is Adrian Mole but he did lust after Blair Babe Pandora I think.
Cyprus has lost its financial sector for all time. Its German Euro denominated tourism will also be in freefall given it is now a very expensive compared to Turkey and I presume Northern Cyprus so I expect the economy to contract by 20% over the next 2 to 3 years.
The reason for delaying bank opening yet again cann only be they don't know how much money is left. The haircut I opine is more likely to be 50% than 40% on residual bank deposits over 100k€