Mike Shedlock

Direct robbery of Spanish citizens would net Spain about €120 Billion according to economist Niño Becerra who says "Cyprus Solution is Feasible, Can Be Extrapolated to Spain"

Santiago Niño Becerra, Professor of Economics at the University Ramon Llull in Barcelona, says a tax as imposed on Cyprus in exchange for bailout, would be possible and that "it is very clean, unlike a freeze all balances, which would be a mess."

Through his twitter account, Niño Becerra says it would be more painful for Cypriots if "the bailout were to occur in the form of public debt."

The Spanish government was quick yesterday to claim the Cyprus solution was not applicable to other countries. Niño Becerra disagrees: "I'm not saying this will happen, only that it is feasible, it is possible and if extrapolated to Spain, would be very clean."

Becerra estimated savings using Spanish a "tax" of 10% would raise €120 Billion. A 5% tax would raise €60 Billion, which, added to the €40 Billion commitment would be the amount regulators said a year ago that they may need for Spanish banks.

Direct theft is now considered a "feasible" option for Spain. Lovely.

Cyprus Banks Closed Until Thursday

While pondering that thought, note that Cyprus banks will stay closed until Thursday

Mike Shedlock

Mike Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management.
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