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Old 03-29-2013, 11:00 AM   #162
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Join Date: Aug 2005
Location: Denver
Posts: 12,758

The Team

Once more for the idiot Gaffney.

5 Hiding money in tax havens can turn into hide-and-seek

German chancellor Angela Merkel declared the Cyprus financial services business model, in which banks were eight times the size of the country's GDP, as "dead" unusually blunt language for a world leader. But it is a warning shot to rich tax-dodgers everywhere: if you park your money in offshore havens, it's at risk.

Some Russians will lose 40% of their cash, but will find little sympathy from German taxpayers suffering bailout fatigue, who regard it as dirty money laundered into the EU through the back door.

However, Cyprus is not the only country to run a business model where bank assets are a large multiple of GDP. Luxembourg has bank assets that are 22.5 times the size of its economy greater than Cyprus. Both Malta and Ireland have banking sectors that, relative to their economies, are bigger than the banks in Cyprus.

The Channel Islands must be asking if running an economy based on offshore banking is the one-way ticket to prosperity it seemed in the past.
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