Saturday, April 20, 2013

A Untidy Clean-up of Cyprus and Germany

From this week, the German 'blessing' for the Cyprus done, finalized, and in the book.  Germans will quietly grumble, and thousands of comments via journalists will be tossed around the next couple of days as everyone agrees to disagree over this whole deal.

Cyprus?  Hostility exists over the deal and the unfairness of it in the end.  The Cypriot rich, middle-class, and working-class....all lose in the deal.  The only other view of this?  They could have lost even more.  It's kinda like being on a boat sinking, and commenting later that it was an old boat....probably not worth fixing or maintaining anyway.

The reality of Cypriot banking?  They opened up their little banking system to take in just about anyone with cash.  They rolled out the red carpet, and never denied any foreign individual from flying in....depositing massive sums of cash....and then went to work investing it. After a while, there was so much cash....that the bankers just couldn't make wise decisions anymore.  They became stupid bankers, and just flushed everything down the toilet.

A German would look at this whole game and shake their head.  They demand banking stability, in exchange for getting limited profits or dividends from their investment.

An end to this mess?  No.  I don't see calm positive nature returning to Cyprus for at least a decade.  Everyone is affected, and will live in a meager lifestyle for a number of years.  The German tourists to the isle?  The negative words have been spoken, and I'm humbly guess that German tourism shrinks by half or more for this year and next.

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