The situation in Cyprus is outrageous. Private money is being stolen just to protect the big players so they do not have to take a haircut. First governments have reduced interest in bank deposits to below the rate of inflation thus screwing savers. Then IMGlobal steals money from its own customers without a problem. Now the EU is mandating taking money from depositors. It seems that the powers at be want no one to ever have any money in a bank account. The purported justification for the Cyprus money stealing was to prevent contagion. In reality it is sending shock waves around the world that no one´s money is safe and everything is not potentially fair game for confiscation. And what comes after that? Private gold holdings? The powers that be are becoming ever more criminal and brazen.
And who has to pay for the Cypriot bailout? The bondholders who foolishly speculated in Cypriot bonds? The banks which mismanaged their own businesses while making big bonuses? The politicians who mismanaged the country and its finances? No, no and no. The people who are victimized by this are those who were foolish enough to actually be good citizen and save money and put it in their banks. Obviously those people need to be punished for the crime of saving and trusting the banking system. We will start going back to the days where the smart people keep their money under the mattress.
This is where the lack of transparency, democracy and accountability of the EU is showing its ugly side. Apparently they did this to prevent a bank run, when in fact they have produced a predictable bank run. A prescient has been set. From now on people will not put their money in Cypriot banks, and to a lesser extent into EU banks. It is as if they want to deliberately destroy bank depositor confidence.
This from Mish Shedlock
Read that last paragraph carefully. Officials raped Cyprus citizens to avoid “unsettling investors in larger countries”.
Here’s the deal. Large investors should have risk. The nannycrats and thugs in Europe still don’t see it this way and this is the most blatant example of theft yet, all in the name of preventing “contagion”.
Contagion of Idiocy is Everywhere.
Mike “Mish” Shedlock
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