I saw a newspaper article about the cyprus banks and they were nicely profitable paying and charging mid single digit interest rates. What has caused the bank crisis is large amounts of Greek sovereign debt on their balance sheets, that they had to write down the face value of, because Greece can't pay them back.
Looks like Euro zone is keeping Greece alive but not all buyers of Greek debt. :'( Now the Euro zone handlers are upset that Cyprus went to Russia looking for help, with no success... Cypress is small potatoes (fraction of 1% of Euro zone) but the contagion effect on the rest of Euro zone is real, so I still expect some kind of bailout.
JR
Looks like Euro zone is keeping Greece alive but not all buyers of Greek debt. :'( Now the Euro zone handlers are upset that Cyprus went to Russia looking for help, with no success... Cypress is small potatoes (fraction of 1% of Euro zone) but the contagion effect on the rest of Euro zone is real, so I still expect some kind of bailout.
JR
