More details are appearing on the latest and greatest plan in the shambles to solve Cyprus' (and Europe's unsolvable) problem. It appears the European Group is implicitly declaring economic war on the 'wealthy' depositors (we noted here non-domestic depositors dominated recent inflows) as these headlines hit:
- *EURO AREA SAID TO WEIGH CLOSING CYPRUS POPULAR, BANK OF CYPRUS
- *EURO AREA SAID TO WEIGH GOOD BANK, BAD BANK FOR CYPRUS BANKS
- *UNINSURED DEPOSITS COULD GO TO CYPRUS BAD BANK, FACE 40% LOSS
We assume followed rapidly by some eurozone law-breaking capital controls to stop the remaining 60% flooding out instantaneously...