Cyprus Bailout Risks Europe Bank Runs

[haxxiy]

Nem said:

The idea that lots of banks in europe are bankrupt is ludricous.

Even on the countries that have been bailed it is just the odd one or none at all.

Also the idea of "bailout" is misinterpreted by non-europeans. No one is beeing bailed out. Every country so far has been lended money at the interest rate of 3% instead of the market interest. They are paying those loans back. Theres no one "offering" money around here. And while the EU can pressure their state members to adopt austerity measures, in the case of non-members they dont have that control, so this extra measure comes as no surprise. Fair? No, but the guy lending the money dictates the conditions. If you dont like them, dont take it.

They aren't bankrupt, they just have way, way more liabilities than they could reasonably handle. Of course as this whole Cyprus situation shows, it often ammounts to the same when people stop believing in the smoke and mirrors.

Now to appease and calm down the owners of interest and debt the market is slowly restructuring, yeah, but at the price of millions of jobs and the cutting of social policies all around the continent. And both ot them will never come back since you need way above average growth to close unemployment gaps and spend money again without contributing to sovereign debt, something that probably isn't going to happen specially in the mediterranean.