Future historians may look back on today and decide it was the day which marked the beginning of the end for the euro, or the European banking system. I could hardly believe my ears when I heard last night that the Cypriots were being forced to levy money from savings accounts by Brussels. Even if you ignore the fact that it is totally unfair on people who have saved up money for their retirements (or other purposes) and they have already paid tax on it, it is surely economically stupid too. The only conclusion will be that savers in other countries will take the hint and launch a stampede on their own banks. Frankly, if they don’t they will be acting irrationally. It might not happen tomorrow or next week, but the next time there is any future crisis with the euro, you can bet your bottom euro it will happen.
Tuesday, March 19, 2013
Cyprus Meltdown: Could There Now be a Run on Spanish, Italian & Greek Banks?
Well if I lived in Spain. Greece or Italy, do you know what I would
be doing tomorrow? Trotting off down to my local bank and withdrawing
all my savings and then either stuffing it under my mattress, putting it
into a German bank, or buying property or gold with it.
Future historians may look back on today and decide it was the day which marked the beginning of the end for the euro, or the European banking system. I could hardly believe my ears when I heard last night that the Cypriots were being forced to levy money from savings accounts by Brussels. Even if you ignore the fact that it is totally unfair on people who have saved up money for their retirements (or other purposes) and they have already paid tax on it, it is surely economically stupid too. The only conclusion will be that savers in other countries will take the hint and launch a stampede on their own banks. Frankly, if they don’t they will be acting irrationally. It might not happen tomorrow or next week, but the next time there is any future crisis with the euro, you can bet your bottom euro it will happen.
Future historians may look back on today and decide it was the day which marked the beginning of the end for the euro, or the European banking system. I could hardly believe my ears when I heard last night that the Cypriots were being forced to levy money from savings accounts by Brussels. Even if you ignore the fact that it is totally unfair on people who have saved up money for their retirements (or other purposes) and they have already paid tax on it, it is surely economically stupid too. The only conclusion will be that savers in other countries will take the hint and launch a stampede on their own banks. Frankly, if they don’t they will be acting irrationally. It might not happen tomorrow or next week, but the next time there is any future crisis with the euro, you can bet your bottom euro it will happen.
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