The Long Bank Holiday

After the longest bank holiday in Cyprus (and probably in Europe) the banks are open for business. People can draw as much as euros 300 a day in cash. There are controls to prevent the flight of capital out of the country, because who, in his right mind, would not cut his losses in Cyprus if he could and who in his right mind would invest in Cyprus in circumstances when he knows that (a) he is not permitted to get his profits of his investment out (b) the European Union has taken a set against Cyprus and is punishing Cyprus for economic problems created by the profligacy Greece and a business model based on that of Luxembourg and Switzerland? Continue reading