Eagle Eye Opener: Cypress Expected to Veto Tax Levy on Savers; Russia May Punish Germany for Terms of Cypriot Bailout Plan; U.S. Homeownership Grows

Eagle Eye Opener

Cypress Expected to Veto Levy… Waddle Closer to Default (Reuters)

European investors awoke to another cold slap in the face, Cypriot style, as the tiny island-nation’s parliament is expected to veto the European Union’s (EU) proposed bank levy today. Unfortunately, rather than have fellow Cypriots pay the 6.75 percent tax on accounts under 100,000 euros and 9.95 percent on those over that level, Cypress’ government would rather nudge the island closer to default and banking collapse. Should the island not impose the bank deposit tax, the EU will not release bailout funds to keep banks alive another day, pay government wages, or dole out welfare. While Cypress gets high marks for protecting their own, they could fail the big test, if/when the island’s economy collapses. With the vote scheduled for today at 12:00 EDT, we’ll know soon enough.

Russians Consider Icing Germany over Cypriot Bailout (CNBC)

Even though Germany insists it isn’t responsible for the proposed levy on Cypriot bank deposits, Russia isn’t buying that story. In fact, because super-wealthy Russian oligarchs have parked so much money on the island — some 20 percent of the island’s total deposits — they stand to lose billions of dollars should the levy become law. And that situation doesn’t sit well with oil barons who are used to getting their way. Some analysts predict that Russia will respond by turning off the gas nozzle to Germany until the threat of the levy is lifted, just as it did in 2009 when Gazprom cut off Europe over a Ukrainian energy company dispute. What happens to global markets if two heavyweights square off over Cypress is anyone’s guess right now. But it’s sure to be one hell of a bout.

More U.S. Home Owners Pop to the Surface in 2012 (YahooFinance)

According to CoreLogic (a leading provider of consumer, financial and property information), there was some good news for the U.S. real estate market last year. More than 1.7 million U.S. properties popped above the surface in 2012, returning to positive equity. The “less-good” news — for these homeowners and investors alike — is that 21.5 percent of all mortgages, or 10.4 million homes, are still underwater (home owners owe more than the house is worth). And of the 38.1 million homes with positive equity, approximately 11.3 million of them are considered “under-equitized,” reflecting less than 20 percent equity. Still, Anand Nallathambi, CEO of CoreLogic, insists the situation continues to improve, “The scourge of negative equity continues to recede across the country.” Let’s hope Anand is right… If he’s not, you may want to start looking for a good “scourge” insurance policy.

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE

previous article

The European Union’s (EU) tough love policy for the island of Cypress has roiled markets worldwide today. Instead of simply flooding Greece, Spain and Italy with European Union bailout bucks in exchange for significant austerity measures, the EU decided Cypress’ depositors themselves should contribute to bailout funds by taxing existing accounts.


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Profits Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • Intelligence Report
  • Bullseye Stock Trader

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Technical Traders Alert
  • Success Trading Group


Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor