Why is the European Union making all citizens of Cyprus suffer just because the Russian Mafia uses their banks?
- Anonymous7 years agoFavorite Answer
you're right that the Cyprus banks have been laundering money from Russian oligarchs and mafia, but this is not the source of the problems.
The banks have had an enormous amount of money come in due to the Russians, like 8 times that their GDP which is a ridiculous amount of money. And like all banks in the past 20 years (as Wall Street) they have made bad investments and risky bets to earn quick money. The bad investments collapsed and they lost money big time. Since banking is an exaggerated part of the cypriot economy, the entire economy went down the tubes.
The banks on Cyprus created the problem in the same way as the banks on Wall Street created the problems in the US and elsewhere in Europe.
What the Governments have been doing is bailing out the banking sector instead of letting them go bust, because they control so much of our governments at the moment largely through corruption and with their financial influence. They pretty much make the laws and dictate policy. The normal reaction has been to inflict austerity programs onto a country, reducing social programs, which put the screws to the middle class and the poor. This is what the politicians want in the States and in Europe.
What is new, shocking and crass now is how Europe is applying this type of austerity on Cyprus. Money that is insured and considered safe in bank by governments, is now being plundered. Europe is giving the banks of Cyprus permission to take money directly from the accounts of citizens and transfer that money to their own accounts to cover the losses they made by their risky and bad investments! This is a shocking development and perhaps a sign of things to come in the States. The citizens of Cyprus are naturally pissed off - as well they should be. The EU then is making the citizens of Cyprus suffer for the benefit of the banks and super wealthy - just as Obama and Bush have done in the US.
The only thing that will change this, is the citizens protesting and demanding that the banks and their share holders lose - what would be fair.
For a good report about this, see Democracy Now:
- mommanukeLv 77 years ago
This is the status of the bill at last report. http://www.reuters.com/article/2013/03/18/us-euroz... The decision has not yet been made and may not be made. It is not the Russian use of their banks that is causing the problem. It is that Cyprus has for about five years now been bailed out by the EU with no changes and the EU is fed up with it. Their choice, if they end up rejecting it, is to get no bailouts and their system to collapse.