Hong Kong (AsiaNews) - All Asian markets are down to almost 3%. Analysts agree that the negative signals depend on the Cyprus bailout, which is to be launched today, and which is causing real concerns about the European debt situation.
The European Union (EU) and the
International Monetary Fund (IMF) are in fact determined to help the island
with loans of up to 10 billion Euros if the Cypriot banks tax their customers savings.
The
plan must be accepted by the Nicosia parliament today, but the president of the
island, Nikos Anastasiades, in a televised speech last night has already tried
to explain to the public that the choice is between the plan and an exit from
the euro with subsequent bankruptcy.
The
Nikkei was down 2.5%, Hong Kong by 2.2, Australia 2%.
This is the first time that the
17 euro zone nations have suggested a levy on a population's savings to fund
bailouts. Under
the plan, customers with less than 100 thousand euro deposit will be charged
6.75%, and those with more than 100 thousand Euros will be charged 9.9%.
The
Cypriots stormed the ATMs only to realize that they are almost empty and the
banks are closed for holidays today and tomorrow by Presidential order.
According
to some analysts, "soon the same thing will happen in Italy and in the
rest of Europe, then it will be the turn of the U.S. and the Far East."
The
EU and the IMF move on Cyprus, seems to follow the pattern of an analysis first
proposed by the Boston Consulting Group (BSC) in September of 2011, that estimated
excess of total debt (not just public debt, but also to businesses
and households) at
20 thousand billion. The BSC conclusion was that it was necessary to introduce
a one-off wealth tax in the western world equal to 30% of total assets. The
particularity of Cyprus was and is its role as a tax and banking haven for Russian
oligarchs, with a disproportionate amount of deposits in the resident
population. The
compulsory levy has therefore been "contained" to 10%.
(The image is
from www.maxkeiser.com)