Cyprus apparently has a Monday deadline to avoid collapse of its banking system. If this goes unresolved “financial meltdown” may occur for Cyprus and it could become the first country to leave the euro zone.
The French Finance minister has stated that the Cyprus is a casino economy that was on the brink of bankruptcy. So what should happen? It seems reasonable to let it go down financially and rebuild from zero, start anew. This would hurt the foreign investors and the Cypriot people, but it should lead the people of Cyprus to seek a more stable protection of their money in the future, hopefully by demanding a more realistic banking system. I have read that once all of the chaos clears, Singapore may replace Cyprus as a magnet for cash from Russia. I would hope this would motivate the Russians to try create a safe banking system.
One would assume some intervention would occur to prevent collapse, but with most of the bloated Cypriot banks being used by Russia it may not. Even Russia does not seem sympathetic to a bailout
Perhaps the bigger concerns are will depositors in Italy, Spain and Greece also panic? ….one would assumed they should have already
So in my brief analysis, I would assume Monday should only be another brief bobble, but that is mostly speculation.
What did I see in my weekend review?
The 10-yr Treasury yield is at 1.91
IBD (Investor Business Daily): Confirmed Up Trend
Moneys Flows: Trending Up …now in two out of three portfolios
Currently my "Stocks for a Trade" now consists of:
(All gains or losses shown are the total since purchase)
RGR +4.44%, down once again this week
ETF’s for a trade are:
What will I do?
For Stocks I sold CSCpicked up JCOM . BAC and SANM look interesting, but will likely wait on further stocks at this point.
I will be looking at these things at noon on Monday, but Tuesday will likely be a better day
I hope you have a great week