The Cyprus Disaster

I have been slow to write about the Eurozone crisis of the moment, Cyprus, for one important reason – I didn’t understand it.  I read about how the big banks became under-capitalized and as the central government contemplated default like so many other European nations and thought it was about the same as we’ve seen repeated in far too many nations.  Then, it got weird.  What was so hard to understand?  It was the way the European Central Bank (ECB) put the hammer down that pretty much forced a run on Cypriot banks and guaranteed a major depression.  Was there something in this that I missed?  Or was the ECB really that unbelievably stupid?

After looking this over for a while, I have come to a very frightening conclusion – the ECB really was that stupid, and more.  This isn’t about Cyprus anymore, it’s about how the ECB is unworthy of any faith at all.  If that scares the Hell out of you, welcome to the club.  I certainly didn’t want to come to this conclusion, but here it is. It all starts, like everything Euro, with Greece …

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