Cyprus Headlines Are Deja Vu All Over Again

By Tom Luongo in LiveWire Economics Blog | March 24, 2013 0:31 | Tags: , , , , ,

What is it about the European Union and the month of March?  It was almost a year to the day that the Troika unveiled its secret plan to thieve the bank depositors in Cyrpus from the fateful Greek elections that resulted in actual impairment of holders of Greek debt.  Greece was fixed only by overthrowing its government and turning much of the country into a debt-ridden hole that the people will never crawl out of, all to be sacrificed on the alter of European socialism fairness.

Watching the headlines today reminds me of last March where seemingly every 20 minutes there is another headline proclaiming the situation ‘fixed,’ ‘solved,’ or just plain ‘over,’ only to be contradicted by a different headline saying both sides have been reduced to hurling spitballs at each other.

Frankly, it would be more entertaining.  And entertainment, at a certain level is what is missing from the events in Cyprus.  We have apartment raids, specious suicides and bank runs.  They have it right in Italy.  When the economic situation becomes absurd so should the politics. Cyprus should bring Beppe Grillo in to moderate, then at least someone will be speaking something close to the truth every once in a while.

No outcome here will make a majority of any group happy.  And the situation truly is so weird that laying down predictions as to what will happen is simply a fool’s errand.  The only thing we can be sure of is that the demand for physical assets held outside the banks will rise quickly around Europe and it should in the U.S. as well, given that the IMF was the point man on this insanity.

 


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