Cyprus is preparing for total financial collapse as the European Central Bank turns its back on the island after its parliament rejected a scheme to make Cypriot citizens pay a levy on savings deposits in return for a share in potential gas futures to fund a bailout. On Wednesday, the Greek-Cypriot government voted against asking its citizens to bank on the future of gas exports by paying a 3-15% levy on bank deposits in return for a stake in potential gas sales. The scheme would have partly funded a $13 billion EU bailout.
While corporate executives and the foundering economy remain prime targets in late-night talk-show monologues, the federal bailout is starting to take some lumps, too.
"President Obama is getting very tough now. He has imposed a $500,000 salary cap for executives getting Federal bailout money. And listen to this -- not only that, on weekends, they can only play miniature golf. No more 18 holes."
Bill Gross, Nouriel Roubini, Laurence Kotlikoff, Steve Keen, Michel Chossudovsky, the Wall Street Journal and many others say that our entire economy is a Ponzi scheme. Former Reagan budget director David Stockton just agreed:
BRUSSELS/BERLIN – Germany signaled on Wednesday it was ready to back plans for the European Central Bank to be made the chief supervisor of banks, raising the prospect of a breakthrough on the European Union’s most ambitious financial reform.
Finance Minister Wolfgang Schaeuble told the German cabinet he was “optimistic” about a deal ahead of a meeting of EU finance ministers in Brussels on Wednesday, a German official said, speaking on condition of anonymity.
By David White:Dr. Ben Bernanke has many times reiterated that the Great Depression occurred because too little action was taken too late. This seems to be the path the EU is following. Each time someone suggests having the ECB print money or puts forward the idea of euro bonds, Germany puts the kibosh on the idea. It is becoming obvious that Germany will likely balk at any of the more radical actions until any action is “too little too late.” What is the solution?
With the EU scrambling to contain anti-euro sentiment in Italy, there has been a notable rise of euroscepticism in other places, even Germany. Reuters reports One in four Germans would back anti-euro party.
One in four Germans would be ready to vote in September's federal election for a party that wants to quit the euro, according to an opinion poll published on Monday that highlights German unease over the costs of the euro zone crisis.
Inquiring minds are interested in the recapitalization plans for the Bankia. Please consider this chain of posts.
ABC News reports Spain's Bankia set for massive bailout.
Spain's fourth-biggest bank Bankia says it is certain of securing the 19 billion euros ($24 billion) in state aid it is seeking in the largest bank bailout in the country's history.