Capital Controls Are Not Stopping the Slide in Cyprus

The drop of 1.5 million Euros for the month of may down to 55.9 billion Euros is a 23% drop yoy. With that kind of drop, expect the Cypriot bailout drums to begin anew anytime now and the number to be much larger this time around. And with no Russian oligarchs to snatch money from this time, not quite sure which banks the the government plans on raiding.Plus, they better hurry or there will not be any deposits left to raid because the smart money – read anyone that is literate – sees the writing on the wall is is grabbing what they can and getting out. It is only a matter of time before he Cypriot administration throws in the towel and does the same.Now, will the pull a Greece and go for the bailout train? Or will they go the Icelandic route and tell endure the short-term pain but get away from EU banking stranglehold.None of the EU countries in the most trouble seem willing to go down that path, so expect the bailout and then another bailout, followed by some batch of economists making an excel error on a study. Oh, and tear gas. The order in which that occurs doesn’t really matter.

via Capital Controls Are Not Stopping the Slide in Cyprus – Trade the Newsroom.

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