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News Link • Economy - International

Cyprus Parliament Refuses

 There could be a very ugly showdown coming here as without enabling legislation there is a good chance that the locking of people's accounts could be considered theft by conversion and given the amounts involved this is not a petty offense!

I suspect, but cannot prove, that the reason for the IMF and ECB demand is that the ECB and other "protected" parties are the holders of the bonds in these banks, and had an orderly resolution process been carried out (or for that matter a disorderly bankruptcy) the result would have been a wipe-out of these institutions' holdings.

Rather than accept that, having willfully and intentionally looked the other way and accepted those bonds as collateral despite knowing they were worthless they attempted to steal the funds from the people to cover it.

If the Parliament says "nuts!" to that and decides to stand firm then we shall see if the ECB makes good on its threats and forces bankruptcy proceedings -- and whether the people of Cyprus decide in turn that they've had enough of this crap and start issuing Letters of Marque and Reprisal against Herr Merkel, Christine Lagarde, Mario Draghi and the rest of their institutions.

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