29 March, 2013


What I hope is a few final thoughts on Cyprus.

A bank is not 'open' if you can't go in and draw your money out.

A euro deposit in Cyprus, which can't be moved out, must be worth less than the equivalent euro deposit in Germany or Greece. Cyprus is therefore not in the single currency, it just has a managed and grossly overvalued exchange rate.

The deposits in Cypriot banks dropped dramatically in the weeks leading to the bailout. Who leaked it, to whom, and in return for what?

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