The title of a recently released CBS News article is “Tiny Cyprus threatens EURO stability” (Web-site/URL: http://www.cbsnews.com/8301-500395_162-57574768/tiny-cyprus-threatens-euro-stability/?tag=socsh).
“Cyprus’ parliament on Sunday (March 17, 2013) postponed a crucial debate and vote on a levy on all bank deposits that the cash-strapped country’s creditors had demanded in exchange for 10 billion euros ($13 billion) in rescue money”.
“The announcement SET OFF AN IMMEDIATE SCRAMBLE among top European financial officials, with reports that the European Central Bank (ECB) was pressuring Cypriot authorities to hold the vote without delay”. “set off an immediate scramble” of course = PANIC and we certainly DON’T need any more of that or could certainly use LESS of that.
According to Averof Neophytou, “deputy chief of the ruling Democratic RALLY party”, “There are two choices, voting IN FAVOR which allows the country to AVOID a DISORDERLY bankruptcy, or REJECTION, which will have us FACE A DISORDERLY BANKRUPTCY WITH ALL THAT IT ENTAILS“. Of course Neophytou will vote IN FAVOR OF this levy. Also, notice “rally”, which suggests PROTEST, at least to GIGI IBRAHIM (gsquare86).
According to Cyprus Greens lawmaker Giorgos Perdikis. “It’s a LOSE-LOSE situation. There will be a HUGE deposit withdrawal from Cypriot banks with or without a (levy). We should have THE COURAGE (?) to make the right decisions that will RESTORE THE PUBLIC’S CONFIDENCE, which was DRASTICALLY SHAKEN“. Who has this “courage?” Can we have “confidence” in POLITICIANS?
Finally, Anatoly Aksakov, “president of the Association of Regional Banks of Russia, was quoted by the Interfax news agency as saying” “Now the faith in Cyprus as a place where it is convenient to keep one’s money will be UNDERMINED” and of course, that’s NOT good.
So, a “tiny” market is having a BIG impact. US stocks are already DOWN (Web-site/URL: http://www.bloomberg.com/news/2013-03-18/u-s-stock-index-futures-drop-on-cyprus-bank-levy.html). ASIAN stocks should also be DOWN today, unless, of course, CHINA RIGS STOCKS which, as we have seen, is HIGHLY LIKELY.