Archive for March 17th, 2013

expropriation

The most recent EU summit on Cyprus brought to light a new instrument to tackle the debt crisis: expropriation.

While German newspapers call it a fourth stage of the Euro rescue, Business Insider finds more drastic words:

This Crazy Cyprus Deal Could Screw Up A Lot More Than Cyprus…

What do you think those other depositors in Spain, Italy, Greece, etc., are going to feel like doing when they realize that, if their banks ever need a bailout, they might have their deposits seized?

In addition, I would raise two general questions:

  1. What guarantee is there that this was a one-time intervention?
  2. What happens if this ‘strategy’ is imposed in France or Germany?

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