Will Cyprus cause the collapse of the Eurozone?

[sasguru]

Well we all thought it would be Greece or one of the other PIIGs.
But history shows it's the small events that precipitate larger convulsions in ways we cannot predict.
For example the assasination of Archduke Ferdinand in Sarajevo in 1914 was seen as minor event in the big scheme of things yet changed the world with the 1st World War.

[Sysman]

That's weird.

As soon as I read the title I was thinking of the assassination of the Archduke.

[DimPrawn]

Why is a hyper intelligent super being like you asking a useless bunch of cretins like us?

[eek]

It's a cunning experiment to see if he can think up to our level.

FTFY HTH

[DimPrawn]

It's a cunning experiment to see if he can think down to our level.

HTH.

I thought only rocks and politicians were at our level?

[sasguru]

Why is a hyper intelligent super being like you asking a useless bunch of cretins like us?

My role is to raise or uplift the very low level of this forum by planting ideas and thoughts into otherwise barren soil.

[Ketchup]

My role is to raise or uplift the very low level of this forum by planting ideas and thoughts into otherwise barren soil.

Unfortunately, this forum is a barren wasteland void of all intellect, your seed will find no purchase.

[SupremeSpod]

My role is to raise or uplift the very low level of this forum by planting ideas and thoughts into otherwise barren soil.

That sentence doesn't make sense.

[sasguru]

That sentence doesn't make sense.

I rest my case.

[doodab]

Well, it rather depends what happens.

If the troika succeed in imposing a haircut on ordinary savers, rendering the deposit guarantee worthless, and with most accounts paying piss all in interest, it's not hard to imagine widespread runs on banks across the EU.

If the cypriot banking system collapses and the deposit guarantees aren't honoured then ditto.

The only viable solutions are either the EU and IMF step in with some sense (I said viable, not likely ) or a third party bails them out in return for something. The russians look most likely here.

The irony is that much of the problem can be traced back to the haircut imposed on greek bindholders, as cypriot banks were heavily exposed.

Oops.