Billions left Cyprus banks in the week before the Eurothugs swooped down to grab all that tasty Russian money. But instead, they discovered much of it was gone.
Much of the money was withdrawn from overseas, where Cyprus had no authority. Branches of Cypriot banks in non-euro-zone countries such as Russia and Britain do not answer to the European Central Bank.
How convenient for Russians getting their money out and for whomever in the Cyprus government and banking system who greased the way for them.
How much longer will the rule of law remain in Cyprus once full blown class warfare is unleashed, and the 99% are generously handed the list of the 1% who were “informed” enough to pull their money from the flaming sovereign equivalent of Bernie Madoff, while every other uninsured depositor is facing losses of up to 80%, and soon 100%?
And what happens if the realization dawns that despite all the promises even insured investors will eventually get impaired once the money runs out?
As always, the comments at Zero Hedge are a hoot.
Something tells me that as furious Cypriots must be, they would never apply jumper cables to your testicles.
Every time I think I’ve seen it all, these folks manage to outdo themselves. I previously had no idea that such extreme levels of clusterfuckedness could exist.
The Russian response will not be swift or impressive at least at this stage. The Russians grind slowly, but they grind thoroughly, very thoroughly. I don’t think it is Cyprus, it is the EU and particularly Germany that are in deep shit over this one.
Absolutely, Russians don’t bluff and they are tough. Just ask Germans about the Battle of Stalingrad.