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The Bank of Cyprus and the Cyprus Popular Bank (Laiki Bank), passed stress tests given by the EU in 2010 and 2011. By the end of 2010- even as other banks such as Barclays were cutting their Greece government bonds by over 50%- the two banks held 5.8 billion euros of Greece bonds, over $1 billion euros larger exposure to Greece than nine months earlier, according to European regulators. Regulatory supervision failed to alert the banks and the banks risk management failed to see the warning signs in Greece. The Laiki Bank Risk Officer went in the opposite direction actually increasing exposure to Greece, saying in a conference call in August 2010, that he had used the bank's capital position "to deepen selectively some highly profitable client relationships." What went wrong with the stress tests by the EU regulators in July 2010 of these two banks, was that the tests looked at what would happen if economic conditions deteriorated, but did not consider the possibility that government bonds could produce losses. The two banks suffered total booked losses of 4.3 billion euros in 2013 from holdings of Greece bonds. The EU stress tests of July 2010 showed the two banks having total of 572 million in surplus capital. The two banks then went on to issue dividends in 2010-2011 totalling 141 million euros. By March 2013 the Laiki Bank was "on respirator" for a few months, according to the Central Bank of Cyprus, until the 10 billion euro EU bailout in March 2013 with the closing of Laiki Bank and the sharp downsizing of Bank of Cyprus....

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President Biden is moving forward a plan to setup a maritime corridor from Cyprus to Gaza and a pier where commercial ships can drop off humnitarian aid and food. The trip would take 28 hours from Cyprus and would be able to get in 200 trucks of aid supplies each day. The Qataris and UAE will also help with this plan and Israelis will cooperate. On the diplomatic front both the European nations, Britain and the US are working together to get Israeli cooperation. British Foreign Secretary Cameron met Benny Gantz. Earlier Gantz met with Kamala Harris in Washington D.C. Gantz is part of the wartime cabinet in Israel. The US and EU, Britain all now have serious differences with Mr. Netanyahu on putting the humanitarian situation first and foremost considering the situation in Gaza.

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Jeroen Dijsselbloem, was finance minister of the Netherlands for 3 months when he was appointed to the position of Eurogroup president in Jan 2013, succeeding Luxembourg's prime minister, Jean-Claude Juncker. He is a 46 year old agricultural economist and a member of parliament for the Labor party, considered by many to be inexperienced for the job. He is outspoken compared to his predecessor. His comments about bank rescues being made by having bondholders and shareholders take up the cost, followed by depositors, has roiled financial markets. Shareholders and junior bondholders were wiped out as part of the nationalization of Dutch bank SNS Reaal NN in Feb. 2013, but depositors were safe. The reference to depositors has created anxiety for depositors at eurozone banks. Dijsselbloem's remarks about the Cyprus bailout and depositors taking losses as a model for future bank bailouts in the eurozone were criticized by many EU officials, including Benoit Coeure, a member of the ECB's executive board. Coeure told French radio station Europe 1: "The situation in Cyprus is very particular, and there aren't the same banking problems in other eurozone countries." Later Dijsselbloem referred to Cyprus as "an exceptional case." Similiar criticism was voiced by the opposition in the Netherlands parliament....

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The firing of Tata CEO Cyrus Mistry by Ratan Tata, former chairman of the Tata Group, leads to a prolonged crisis at the companies of the Tata Group. A vote is needed at Tata Motors and Tata Steel for Mistry to be ousted from these companies following a vote to oust him at TCS. The parent company's board of directors have voted to oust Mistry. The expert view is that the crisis will not last much longer as all Tata companies need the Tata name and will eventually fall in line with the wishes of Ratan Tata. Ratan Tata followed J.R.D. Tata, and Jamsetji Tata, both legendary leaders of the company. Though Mr. Mistry's family owns 18% of the company, much of the reputation of the company lies in the Tata name and the work of JRD and Jamsetji, so that the 660,000 employees of India's largest company are likely to see this as a temporary setback in the long term.

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As Turkey's trade ties with the other countries in the Middle East and Asia increase there is less support for joining the European Union. In 2004 12.5% of Turkey's exports went to the Middle East, today this is up to 20%. This figure is expected to increase after the Arab Spring and new economic opportunities in the region, according to one business group leader. Turkey's exports to Europe in 2010 were about 56%. As Cyprus takes the rotating presidency of the European Union in July 2012, Turkey plans to boycott the presidency and freeze negotiations. In 1974 Turkey invaded Cyprus and set up a rival government in the Turkish part of Cyprus. The talks may be abandoned if no progress is made by 2014, according to Turkish officials. Turkish public opinion is also shifting away from favoring joining the EU. Surveys by the German Marshall Fund show 38% of Turks saw membership as a good thing in 2010, compared to 73% in 2004.

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Cyrus Mistry, who is 43 years old, head of the Shapoorji Pallonji Group, a construction company, will be the new CEO of Tata Sons. He was a board director of Tata Sons for several years. His father is the largest shareholder in Tata Sons with an 18% stake in the company. Mistry, who comes from the same Mumbai based Parsi families as the founder and previous heads of Tata Sons, studied civil engineering at the Imperial College in London and management at the London Business School. He is an Irish national because of his father's marraige to an Irish woman. The previous chairman of Tata Sons before Ratan Tata, J.R.D. Tata, who ran the company for most of the postwar period, also had a similiar background, as J.R.D.'s father married a French woman. By virtue of its acquisition of the steel company Corus Group, and the acquisition of Jaguar-Land Rover, Tata Sons is now the largest manufacturing company in the U.K., in addition to being one of the largest and most well known companies in India. About 58% of sales now come from overseas. Companies in the Tata Group include Tata Consultancy (IT), Tata Motors (autos), Tata Steel (steel), and a range of other businesses in India. Ratan Tata will remain chairman till Dec. 2012, to give time for Cyrus Mistry to assume his new role....

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The strange story of an aging ship in extremely bad shape from a Black sea port in Georgia with a 2750 ton shipment of ammonium nitrate with a crew on unpaid wages making its way to port Beira in Mozambique in 2013. It is leased by a Russian owner living in Cyprus who would make $1 million for transporting the shipment to Fabrica de Explosivos de Mozambique. It makes an unscheduled stop in Beirut after problems with seamen on the crew to pickup some heavy machinery which might help pay the ship's crews wages. The machinery does not fit and in any case the ship is in such bad condition and cannot handle any machinery.  The port authorites are interested only in the docking fees which the indebted Russian owner does not pay and abandons his leased ship. The port of Beirut impounds the ship for unpaid docking fees which turns out to be the reason the ship remains in Beirut harbor. The ship fails shipping standards and takes in water, it remains in Beirut harbor till 2014 when the ship sinks. Before that the Beirut authorites for some strange reason unload the ammonium nitrate and leave it in Hangar 12 warehouse where it remained till it exploded yesterday. The authorites never gave much thought to the ammonium nitrate and its dangers till after unloading it. After unloading no one accepted responsibility. The Russian who had leased the ship was living in Cyprus and took no responsibility. The government of Lebanon also did not know what to do with it.  Repeated attempts by the port authorites asking the government to take some action for disposal fails to lead to any action. There is now a sense that Lebanon is a failing state because of the nature of this incident.   ...

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Capital outflows from China by legal and other methods tolerated by the authorites comes to $225 billion or 3% of GDP in the year ending Sept. 2012, according to research by the the Wall Street Journal. The research looked at foreign exchange reserves and factors that affect reserves such as foreign direct investment, trade surplus, interest on foreign assets and exchange rate fluctuations. Estimates by Lombard Street Research are higher- at $300 billion for this period. By comparison Journal research shows the capital outflows for 12 months to March 2009 during the global financial crisis was $110 billion. An extreme situation is the 23% of GDP in capital outflows from Indonesia during the global financial crisis. Money transfer agents are widely used by wealthy Chinese to move money overseas and are tolerated by the authorites- everything from financing tution for children to buying condos in Cyprus can be done this way. Cyprus gives EU citizenship to any person investing 300,000 euros in a property. Increased foreign investment by Chinese companies and earnings by exporters that are kept overseas are also part of this outflow....

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Alvin Bragg was elected in 2021 as New York County District Attorney covering Manhattan. Before this he was an Assistant US Attorney in the Southern District of New York and appointed as chief deputy Attorney General for New York State. His early education was at Trinity School and at Harvard where he finished degrees in government and law. He is only the 4th person in 80 years serving in this position succeeding Cyrus Vance. Bragg inherited this case of claims of hush money payments by Mr. Trump to a porn actress. Bragg as Chief deputy Attorney General has experience in prosecutions against people connected with the Trump organization and administration. Bragg decided not to pursue the case a year ago because he was not convinced there was enough supporting information and the direction was not clear. He decided to bring in more resources additional prosecutors, and studied the case in different areas before deciding on the one area to focus on, a process that took one year according to a recent NYT report. It is only after this process that an indictment of Mr Trump was made. ...

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ECB study put out in April 2013 shows household wealth and income in eurozone countries based on 2009-2010 data for 60,000 households throughout the eurozone. The household wealth in southern European countries is higher than that in Germany. The study shows why ordinary Germans oppose bailouts for banks, Greece, and eurozone countries that experienced a boom in the 2000-2010 period, a period in which German workers took small pay raises to improve German competitiveness. Germans also see Portugal and Ireland in a different light compared to Greece, Cyprus, Italy and Spain where real estate speculation, lax accounting, tax evasion and favored treatment of certain groups, has created or aggravated the debt problems. Wealth is defined as total assets, including real estate, vehicles, bank deposits, investments and pensions, minus liabilities for mortgages, credit card debt and loans. By this measure German households had an average of 200,000 euros in wealth, and lower than this in Finland and Netherlands. At the median or midpoint German households had 50,000 euros, the lowest in the eurozone, for Greece the median was 102,000 euros. The impact of home ownership is significant in the report, as home ownership is lower in Germany than in Southern European countries, and mortgage interest is not considered favorably in German tax laws. The decline in value of homes after 2010 is also not reflected. Another indicator for comparitive wellbeing is income, and this is shown in figures released in March 2013 from the European Statistics Agency for GDP per capita. For Germany per capita GDP was 29,000 euros in 2010. The average GDP per capita for the eurozone is about 24,000 euros. By this measure Greece is at 21,000 euros, 24,000 euros for Italy and for Spain. Germany being 18-19% above Spain and Italy. If Germans, Dutch, Finns and Austrians are less well off then the argument favors having the banks, creditors, and including depositors, in a burdensharing arrangement for bailout of troubled eurozone economies. ...

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The Russian position for a ceasefire in Ukraine and peace talks is set forth by president Putin. "Our principled position is that state of Ukraine must be neutral, non aligned and free of nuclear weapons." Putin wants Ukraine to give up Donetsk, Luhansk, Kherson and Zaporizhzhia regions, Russian speaking regions in the east of Ukraine. Capitals of Kherson and Zaporizhzhia regions and some of the territory is controlled by Ukraine today. It means that Russia could accept a ceasefire under the present lines of control. It also means Ukraine would not be part of NATO, though it could be part of the European Union, as a peace settlement. All western sanctions on Russia would have to be lifted. Throughout the decade of this war Russia has maintained close connections to the Russian speaking eastern part of Ukraine with historically close ties to Russia and as Ukraine public opinion shifted to the EU Russia began its efforts to bring these regions under its control even when German-Russian relations were better during Merkel years. Russia has the support of China and Brazil in its position. At some point if a settlement is reached one possibility is that the line of actual control or LAC would be put in place. It happened in the Korean War, when the demilitarized zone was setup and in other conflicts on the Indian border with China and Pakistan, in Cyprus between Greece and Turkey. For it to happen Russia will have to dispel fears in the EU and the US that Russia will continue the conflict at some later stage till all its objectives are achieved. This requires removing the perception that Putin is set on achieving all his objectives to reopen the war at some later stage. Mr. Putin hinted at this by saying "today we are making a concrete real peace proposal," and adding that Russia was not ''talking about freezing the conflict, but its final resolution." In this situation it is the western doubt about Putin's intentions that is another barrier to a settlement on European security, with continued destruction in Ukraine when the war has entered a stalemate where both sides have exhausted their resources and have little to gain by prolonging this conflict. ...

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How do you setup a vaccine business. Consider Mr. Adar Poonavalla in the city of Pune in India. His company Serum Institute of India, remains family owned. Founded in 1966 by Cyrus Poonavalla, it produces billions of doses of vaccines for measles, polio and other diseases. It is expected to be one of the key sources of vaccines because of its expertise and the stocks of vials and other supplies that it has in stock for the next 2 years of vaccine production. It is working on a separate facility for coronavirus production that could turn out 800 million doses of vaccine at a price of about $13 a dose over 2 years. Serum Institute is working with 3 companies that are doing the research on the vaccine for coronavirus in the U.S. and Europe, and will play a key role in the manufacturing of vaccines. To respond to the question how do you setup a company to produce vaccines for the people of the world. This is what Mr. Poonavalla says- he will only work with ethical long term funds and sovereign funds because he does not want to be in the situation where he has to charge high prices to give them returns. Unlike most countries in the world, India is unique in making certain that most of the basic pharmaceutical drugs are available to over a billion people at a low cost. Serum's goal is low cost quality vaccine production so that over a billion people in Asia can be "protected from the birth onwards." As the U.S. and Europe and large parts of Asia, Africa and Latin America, face the second vaccine phase of the coronavirus response following difficulties in PPE, Ventilators, and Masks in the first phase, they can have confidence because of companies such as Serum and the research centers in U.S. and Europe like the one at Oxford University. ...

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Simon Nixon says the main problem with the E.U. bank stress tests of 2011 is that it did not test for sovereign defaults. For example Greek debt that is trading at 50 cents on the euro, was marked down 15%. And the lack of urgency to raise fresh capital is another problem. He says the real value of the tests comes from the asset disclosures that accompanied the tests.

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Pope Francis spoke against the effort by the European Union bureaucracy to limit the use of "Happy Christmas" and called it a form of "ideological colonization." He told reporters "many, many dictatorships" had tried this and all had failed on a trip back from Greece and Cyprus. The European Union bureaucracy then withdrew the 32 page guide on use of sensitive language.  Francis said European Union was "necessary" but warned against the EU bureaucracy trying to iron out the differences of culture and religion around the EU bloc countries. "This could end up dividing the countries and causing it to fail. The EU must respect each country as it is structured and not make them uniform." One of the main influences for the European identity, of western civilization, is Christianity. Less known is that King Alfred in his reign 871-899 AD, in one of the most stirring periods of British history, relied on Christianity as a civilizing influence on tribes of the Nordic countries that were invading Britain. The same process of bringing a civilizing influence on heathen tribes happened in mainland Europe. And a similar process took place in India with Vedanta and Buddhism as it spread to China, Japan, Sri Lanka and the rest of Asia. Civilization meant education, learning, wisdom, and came at this time through the ideas of the Bible or the Upanishads, or the Buddhist ideas.  Alfred struggles with how that wisdom once lost, may be retrieved by being written in the English language from Latin. He writes during this period of tumult and invasions- Learning had declined so thoroughly in England, that there were very few people on this side of the Humber who could understand their divine services in English. There were so few of them that I cannot recall a single one south of the Thames when I succeeded to the kingdom. Thanks be to God Almighty that we have any supply of teachers at all! Therefore I beseech you to do as I believe you are willing to do, as often as you can, free yourself from worldly affairs so that you can apply that wisdom that God gave you where ever you can. Remember what punishments befell us in this world when we ourselves did not cherish learning nor transmit it to other men. We were Christians in name only and very few of us possessed Christian virtues." What a contrast from the time of Alfred when Christian thought was identified with learning and wisdom, and the loss of learning and wisdom felt so deeply in this way. In the 12th century Dogen brought Buddhist thought and learning from China to Japan, before that Bodhidharma from India to China in the sixth century AD, and Buddhist thought evolved out of the Upanishads in the 6th century BC, in the same spirit of reflection.   ...

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As only 8 out of 90 banks fail in E.U. stress tests, there is considerable skepticism about the rigor of the stress tests in July 2011. All the banks are relatively smaller banks, with five in Spain, two in Greece and one in Austria. The failed banks have a total capital shortage of 2.5 billion euros. Analysts had expected over 20 banks to fail and requiring tens of billions of euros of capital injections. The 2010 tests had experienced the same criticism, with seven lenders failing and a capital deficit of 3.5 billion euros. European Banking Authority officials concede the lack of sufficient rigor in the tests and attribute this to conflicting political pressures from regulators and banks. EBA officials say their main usefulness is in the added transparency and information it brings. In the 2010 stress tests each bank had to show 149 pieces of data. In the 2011 tests this went up to 3200 points of data about exposures from government debt to derivatives. EBA Chairman Andrea Enria put it this way: "There is this perception that there are things hidden under the carpet, this will help the market to make up its own mind." About 1000 pages of documents were released by EBA to analysts, investment bankers, and investors after the tests....

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Turkey is reviving its relations with Saudi Arabia and the UAE. Prince Bin Salman will visit Turkey as part of a remake of Turkey Saudi relations. Turkey's economic crisis has revived the relationship as Turkey badly needs aid for its economy. The pressure on emerging markets is increasing with US central bank raising rates reducing inflows of western money into Turkey even further. Prince Salman has already received visits from French and British leaders. He visited Jordan and Egypt this week and will now be in Ankara. In the summer he will visit Greece and Cyprus. Saudis are modernizing their economy changing culture in relationships of men and women, in women's rights and education, and broadening relationships with the world under Salman. There is an astonishing openness to science and technology in a drive to be modern. The old Saudi monarchy and conservative rule with ancient traditions is giving way to what the Saudis in the group under Salman see as the modernization of Europe and America in the 20th century using science and technology as what they would like to see in their own country. There is also a drive to think independently from the dogmatic positions of the past that have turned the Kingdom into an American dependency with no obligation or incentive to modernize its culture and be open to the world outside.  The US fought a war to ostensibly modernize a backward mountainous remote state as Afghanistan, while being perfectly comfortable with the old Saudi monarchies of the past that made little change in the ancient culture and tradition and in women's rights and education. Such were the contradictions in American policy and the failure to think anew. As president Lincoln said "as our case is new we must think anew, and act anew." President Biden will now visit Saudi Arabia to build a new relationship with an independent nation, which along with the UAE is bringing change to the Middle East through infrastructure development and modernization. Salman's modernization comes as the kingdom also faced a need to make a transition out of dependence on fossil fuels. Salman sees trips to Greece and Turkey as opening up to all sides. Saudis have good relations with Israel and Egypt another part of this openness. The US senses this, India has sensed this. India's Modi government  made sending the Oxford vaccines manufactured in India to Saudis a priority during 2021. The Indian example is also changing the way the UAE and Saudis see infrastructure development and modernization in the region. This is also changing the way the region is looking at itself. For decades Egypt lacking the resources to build infrastructure on its own has languished economically. A helping hand from the Saudis is changing Egypt. The entire rail system is being modernized with the latest technology from Siemens. The Saudis have stabilized the Egyptian economy with a $5 billion deposit in the Central Bank of Egypt. On June 21 Egypt and Saudis signed $7.7 billion in investment deals for infrastructure, logistics, port administration, food, industry, medicine, energy and technology. In the investments in Egypt some of the oil money going to Saudis with $100 per barrel oil price is going to an economy in Egypt that can easily absorb and make good use of the investment to modernize.   The influence of Saudi leverage in fossil fuels which drove the US relationship with Saudis since FDR is being replaced with an independent Saudi kingdom making decisions to modernize across the board in all aspects compared to one that favored a few American companies such as Exxon Mobil and ARAMCO or arms makers such as Boeing and Lockheed that helped recycle American money going to pay for Saudi fossil fuels back to America.    ...

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Steve Lee Myers reporting from Moscow and St. Petersburg, Jo Becker from Washington and London, and Jim Yardley from Nicosia, Cyprus, provide this extraordinary and exceptional report on the rise of a small group of friends, mostly from Mr. Putin's time in St. Petersburg, into a new sort of oligarchy replacing the old one under Mr. Yeltsin. This includes more familiar names such as Sechin at Rosneft, but also less familiar names such as Mr. Kovalchuk, chairman of Bank Rossiya, which owns major television and radio stations and newspapers in Russia. M. Kovalchuk is described as having acquired many of these media properties at a fraction of their real value. Bank Rossiya assumed management of assets of Gazprombank, and Gazprom bank purchased Gazprom Media with five television and a number of radio stations for $166 million, when Medvedev, a Putin associate put the value at $7.5 billion 2 years following the acquisition, according to this report. Other assets acquired in this manner include Channel 5 and Ren TV, giving Putin's inner circle control of the media and reducing any critical or different views on issues facing Russia. Many of Gazprom's assets were transferred to Bank Rossiya, say critics, including insurer Sogaz which was acquired for $100 million, later valued at $2 billion, says the report. Names on the this inner circle also include Yakunin, head of Russian Railways, also include names like Fursenko and Timchenko. Most of the people in this inner circle are now targets of western sanctions. Missing in this report is mention that that this inner circle of the second term as president replaces the larger circle of the first terms as president and prime minister, with Putin benefitting from experts and advisors in the first terms. That circle included Finance minister Kudrin known for his successful management of the economy, and others who left the administration after flawed parliamentary elections. Even prime minister Medvedev is not mentioned as part of this inner circle, suggesting a degree of isolation which could be perilous for the Russian economy as it deprives the Russian president of different opinion and useful advice. This is a pattern seen in many emerging market countries which experience corruption during the period of industrial development. A pattern seen also in China under the Communist Party. And in Venezuela where a new Bolivarist class was created. In emerging market democracies such as India and Turkey the problem is also present, except that in India the recent open election led to the ouster of the Congress led government with many cases of corruption in its second term. A similiar election led to a new government in Indonesia, showing that there is another way beyond the Putin Way. Behind the protests in Hong Kong and in Russia, as well as in India, were the huge gaps in wealth and the growing inequality, corruption, lack of responsiveness of ruling governments. In Russia this takes another dimension with efforts to control the internet and media, and efforts to spread this style of democracy. This has created problems in the Putin government's relations with western nations having open societies and free media, and unwilling to accept a distorted model of democracy. Another less noticed aspect of the evolution of these emerging markets is that upto a point development proceeds even accelerates even in the presence of corruption, and then reaches a point where development and growth slows with problems of corruption, mismanagement of resources, declining productivity, economic and political errors, or unfavorable external environment. India faced this problem in 2012-2013, Russia is likely to face this in 2015, and China faces the prospect of growth slowdown by 2016. This feature of emerging markets also reminds one of the frequently quoted old English saying by Lord Acton- "Power tends to corrupt, and absolute power corrupts absolutely." An idea also attributed to William Pitt the Elder who said- "unlimited power tends to corrupt the minds of those who possess it." ...

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Infosys CEO Vishal Sikka resigned saying he was responding to criticism which he called "a continuous drumbeat of distractions and negativity." The company's founders including Narayana Murthy had serious differences with the new CEO. Vishal Sikka was hired by the founders in 2014, bringing in an outsider for the first time in the company's history. Sikka worked for SAP before joining Infosys, and was in charge of innovation and development at SAP. Issues of concern to the founders including Murthy were the size of executive pay and the culture changes at the company under Sikka. A similar situation happened at the Tata Group when long time CEO Ratan Tata selected Cyrus Mistry to succeed him. Serious differences about the culture and the changes made by Mistry led to Ratan Tata moving to oust Mr. Mistry from the Tata Group. Narayana Murthy's response to Sikka's statement was that he was concerned "by the deteriorating standard of corporate governance at Infosys." Having an element of public service is part of the tradition at Infosys, and a focus simply on executive pay and shareholder returns to the exclusion of other values may have troubled the founders. In 2009 co-founder Nandan Nilekhani left Infosys to lead the Unique Identification Authority of India at the request of prime minister Manmohan Singh.  Both Ratan Tata and Narayana Murthy are leaders in the business community in India and may have misjudged in their selection of a successor, putting other factors ahead of tradition, governance and culture, leading to this separation in a short time of 2-3 years. This may become part of the broader debate about culture in Indian companies as the country modernizes and moves forward, what aspects from outside to adopt and what aspects of the culture of the founders that are valued to retain and preserve. In the case of Tata the culture goes back from Ratan Tata to legendary figures JRD Tata during the post independence period, and Jamshedji Tata under the British, and is taken seriously. Ratan Tata even considered joining the Quit India Movement during the British Raj , according to biographer R. M. Lala. ...

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The stories of Dylan Roberts, 32 years, in Rockford, Illinois and Alfred Butt, 42 years,in Hohenlockenstedt, Germany. Roberts lost his job at aChrysler plant in Belvidere, near Rockford, Illinois, and Butt lost his job a German auto parts maker. Roberts gets a $64,000 severance package, and 59 weeks of unemployment insurance, with apossible additional 13 weeks, with monthly check of $1426 that is 27% of his income of $64,000 a year when employed. attribute 33 weeks of the 59 weeks to the stimulus measures of President Obama. Butt has 4 months as atransfer worker at full pay, which can be as long as 1 year, then he has till May 2010 at 80% of his pay when employed full time of 2700 euros amonth. The transfer company gives job training and job hunting advice. He continues getting his medical insurance benefits which are provided by the state. Roberts loses his health insurance with his job, and hopes to pay his expenses for a2 bedroom apartment with his girlfriend who makes close to $1500 as an elementary school teacher. He will take a2 year electronic engineering course with a local college using $6000 from Obama's Dislocated Worker's Program. But he isn't sure if he can do his studies after one year when his unemployment benefits expire. Butt can afford to take a vacation to Cyprus and his lifestyle is not much affected he says. His wife works as a nurse at a rheumatism clinic. Butt is like the 64% of Germans who say the crisis is not affecting them personally. Roberts is like the 87% of Americans who say this crisis id hurting them in their persdonal lives. To pay for the state funded benefits the total wage tax burdenas a percentage of labor costs for Butt is 52% in Germany. FOr Roberts it is 30% in the USA. France is at 49% Spain at 39% and the UK at 34%. Germany's public expenditures for these labor benefits are 2.97% of GDP in 2006, the USA's are 0.38%. Spain and France are at 2.32% and the UK at 0.61%. This also explains why the impact in countries like Germany and Spain is not felt so badly as in the USA. In SPain there is also the lower mobility and the safety net of family support helping people cope making it possible to cope with 20% unemployment without serious distress and hardships. See the link to Spain's unemployed....