Monday, March 18, 2013
All educated and sophisticated people are aware of the onomatopoeia "ruh-roh", coined by that famous canine crimefighter Scooby Doo.
I cannot think of a better way to describe what is occurring in Cyprus. In terms of Gross Assets, this is small news, but as a precedent for the willful disregard for the political and legal process (favoring expedience in the face of "crisis") it speaks volumes. Simply decreeing that a 10% levy on bank deposits constitutes a "tax" stretches the already feeble credibility bands of the ECB and EU political structure to the snapping point.
Expect pressure from Russia.