More evil solutions in Cyprus
Ordinarily, you would expect shareholders to be wiped out first, followed by preferred shareholders and then bondholders. And only then should uninsured depositors be touched. The insured depositors should pay only when the insurance provider becomes bankrupt. Or at least, that is what the law was before the weekend. But in socialism, the only law is what a dozen bureaucrats decide to do. Is it also possible that the German and French banks sold CDS on Cypriot bonds? And they do not want to pay. So, eurocrat socialists will just make up the new laws as they help mega German and French banks. Ordinary Cypriots are paying for it.
Of course, there is always a law of unintended consequences. There will be bank runs all around the Southern Europe and a lot of scared money will be flocking to USD. US markets may hold up a little longer as it absorbs capital fleeing from the evil clutches of Brussels.
