Bank robbery: banks are robbing the people

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It's daylight robbery! People with money deposited in Cyprus bank will find themselves 6.75% or 9.9% poorer. And now the banks aren't even open because they don't want people withdrawing their money. [Read more]

Depositors with under 100,000 euros deposited must pay 6.75%
Those with more than 100,000 in their accounts must pay 9.9%
Depositors will be compensated with the equivalent amount in shares in their banks.

And if you don't have any money in the bank? You pay nothing. People are penalized for saving money. What has the world come to? Banks legally robbing people! (Actually, it's the government robbing people).

It's too late to regret not heeding the advice of grannies who keep their money in biscuit tins under their bed.

2 comments:

Paul said...

Most of this pain was caused by Europe's obsession with a single currency which had caused more problems than the perceived benefits it bring. It effectively ties the monetary system of each European country in the EU together and when the Euro strengthens against the USD, they lose their competitiveness against the rest of the world as a trading bloc, causing all type of downward spiraling effects in the banking system which are felt by the common people. Only the UK was exempted from such troubles as they are still using the GBP.

David said...

Yu-Kym,

Europes decades old fascination with cradle to grave social programs has caught up with reality.

When more of a population is living on handouts from the government than there are workers producing goods and services, such a setting is like a house of cards. One can build social programs that promise almost everything, but in time, such as now for Europe, the cost of such programs can no longer be sustained. Decades of borrowing, and refinacning schemes can no longer cover the immense amount of debt the Euro zone has to deal with.

The end result is what you presented in your post.

IOW - Stick ‘em, up.

May these governments all meet the same fate of the bank robbers of the 1930s.

The current heist under way, disguised as a public service measure, proposes to “tax”- steal would be a better word- cash deposits in banks in order to raise about $6 billion euros to bailout...the government in Cyprus. It’s kind of a reverse TARP, which penalizes people who have saved in proportion to how responsible they have been. The money is needed in order to save the governments of Cyprus and the European Union. And the more you have saved, the worse off you’ll be.

As of now, no deposits, no matter how small, will be free from confiscation if the measure passes; no one will be Too-Small-to-Tax.

And make no mistake about it: The bank “tax” that the European Union is imposing on Cyprus isn’t a tax at all. It’s seizure of property without due process in order for politicians to save a system for which someone should go to jail.

This ladies and gentlemen is what Hope and Change! gets you eventually.

David