If you’ve been reading this blog recently regarding the Cyprus crisis, you’ll remember that from the get go I stated that a vast amount of the money has left the country before the system was shut down. This is now proving to be correct.
The result of the “deal” was also as I predicted: Utter confusion in the European bureaucratic ranks. The fact is that no one has any idea (several days after the deal has been struck) how much money is left over in the Cypriot banking system.
The guesses regarding the levy on accounts holding in excess of 100 000 euros has gone like this: First it was between a 30%-70% levy (a pretty broad range) then it was definitely 30%, yesterday it was 40%, now it’s being quoted at 50%.
There are a lot of sweaty palms in Brussles tonight ladies and gentlemen, because the Eurocrats will be praying to the great god of supranational deities that they’ll have enough moolah in the Cypriot system to come up with the readies, otherwise this thing is going to kick off again.
My feeling is even if they don’t really have the needed 5.8 billion euros in the Cypriot system, they will actually report that they have the 5.8 billion euros. Put in plain English: The EU will spin it anyway they want it.
But back to tooting my own horn and stroking my own ego. I didn’t predict these things because I have some inside information or because I am smaaarter than the average bear. It wasn’t a prediction, it was common knowledge for chaps like me, who do the things we do, to earn the money we earn, so that we can walk about saying my other Maserati is a Ferrari.
We private bankers are often poked fun of for being lazy and not really doing much, but when financial calamity cometh, it’s guys like me you want taking care of your hard earned. This goes back to my earlier post on a private banker’s primary duty to his client.
So now after telling you, my dear readers, what a thoroughly brilliant fellow I am, let’s talk about you, because it is you who I am grateful for. I truly appreciate that this blog and my twitter feed has as its readers a vast array of people from different backgrounds. Students, entrepreneurs, top international journalists, a-list celebrities, analysts, traders, politicians, normal everyday working folk they are all here. Which is exactly what I wanted. And this has all happened in just a couple of months. Clearly people have been interested.
The point of this site is to give everyone an opportunity to see inside the very secretive world of private banking (the clue is in the name. Starts with “P” ends in “E” has “rivat” in the middle).
The thing that makes it so heart warming is that I blog anonymously, which means the only way I can gain your respect, attention and continued readership is by providing you with quality content that you find useful.
In the past week my payback for your support has been the ability to give you a few hours to several days notice of pertinent information that has later become headline news. I won’t always get it right, but in a financial crisis I’m pretty darn good. That’s what I get paid for.
So thanks you for reading my posts this far. There is much more to come and as you now know. You read it here first that there would be a massive exodus of money and the EU would be caught out by it.
Let’s see if we can come up with some other gems along the way.