Is nomen omen? Last month Cyprus appointed an economist called Panicos Demetriades as central bank governor. On Friday, the euro zone minnow committed to pump 1.8 billion euros, or 10 percent of GDP, into Cyprus Popular Bank (CPB) if its second largest lender can’t raise it privately. What’s more, this may just be a holding operation. If Greece quits the euro, Cypriot banks and the state itself will need more help…
…[L]ooming over everything is what’s happening in Greece. Bank of Cyprus and CPB each have about 10 billion euros of Greek loans, of which already 13 percent and 19 percent respectively are non-performing. In the event of a Greek exit from the euro, they would both need further capital. Although the central bank’s data from the end of March doesn’t show any deposit flight, the lenders might also require help on liquidity.
Even without a Greek exit, the government’s finances are stretched. Last year it had a 6.3 percent budget deficit and received a 2.5 billion euro loan from Russia, with which it has close financial ties. The IMF thinks the economy will shrink 1 percent this year. In the long run, offshore oil deposits may provide some salvation. But if Athens brings back the drachma, Nicosia will be hard-pressed to avoid its own bailout from the euro zone.
Kamala Harris is set to announce her candidacy for president sometime around Martin Luther King Jr. Day. What sort of chief executive would she be? Well, here’s your first clue: On December 5, Harris posed a series of written questions to Brian Buescher, President Trump’s nominee for district court in ... Read More
The temporary shutdown of parts of the federal government is a good argument for the permanent shutdown of parts of the federal government. When one of his colleagues voiced frustration with the slow pace of conservative reform in the 1990s, Newt Gingrich replied, “Rome wasn’t burned in a day.” That’s ... Read More
She's not holding back. Read More
EDITOR’S NOTE: The following is Jonah Goldberg’s weekly “news”letter, the G-File. Subscribe here to get the G-File delivered to your inbox on Fridays. Dear Reader (Even those otherwise occupied by their doorbell love), Like Jeffrey Epstein when the new Sears Junior Miss catalogue comes out, I ... Read More
"In my country the people can do as they like, although it often happens that they don't like what they have done." -- Winston Churchill, 1946 London During the Second World War, as U.S. power was eclipsing Britain's, Harold Macmillan, a future prime minister, reportedly said, "These Americans ... Read More
One way to understand the Democratic opposition to the judicial nomination of Brian Buescher over his membership in the Catholic group the Knights of Columbus is as a test run in preventing their worst nightmare: the confirmation of Judge Amy Coney Barrett to the Supreme Court. Democratic senators Kamala ... Read More