| Answered: Why Markets Hit Again On Cyprus Worries |
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inthemoneystock
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| Answered: Why Markets Hit Again On Cyprus Worries |
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The markets are taking a hit again today on more worries out of Cyprus. This tiny country is turning out to be a possible catalyst for contagion in the Euro Zone. Plenty of new drama is surfacing. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is trading at $154.32, -0.65 (-0.42%).
There was a scheduled vote today on whether or not to impose the tax on depositors in Cyprus. The automatic tax on all funds within banks in Cyprus sent the markets reeling yesterday. However, today, even if the vote did not pass, disaster could be around the corner.
If the vote does not pass, Cyprus may have to exit the Euro Zone as they default on their loans. Should this happen, it could spread quickly to Greece, Italy, Spain and Portugal.
In other words, if the vote passes and a tax is imposed on all depositors, it creates a run on the banks, if it is not passed, Cyprus defaults exit the EU. Either way, contagion is a very likely outcome across Europe.
Gareth Soloway
InTheMoneyStocks
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Tue Mar 19, 2013 5:24 pm |
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raemart
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How soon do you think this wealth tax grab will be in the U.S.?
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Tue Mar 19, 2013 10:01 pm |
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oldguy
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Looks like Jerry Brown is already on it - new taxes in CA, retroactive.
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Tue Mar 19, 2013 11:04 pm |
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raemart
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?? If the baby boomer masses don't have it to take, who do they take from?
BTW, Cyprus's means testing for this tax starts at $26,000. lol Even our poorest should be able to scrap together that much. That means they take from everyone!
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Wed Mar 20, 2013 12:02 am |
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