We came across this story on the Lew Rockwell's Blog this morning. It's an example of how a picture paints a thousand words.
This is what an 85% haircut actually looks like:
Writes the owner:
cyprus bailout 2012
Article Index
Ouch!: This Laiki Bank Account Shows the Startling Reality for a Cyprus Businessman
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After the Cyprus Bailout, Here's Where You Should Keep Your Savings Now
According to Martin Hutchinson, the Cyprus bailout just turned banking even further on its head. The lesson for U.S. depositors is clear.
Is the Latest Ultimatum in Cyprus About to Derail the Eurozone?
Whether you call it a tax, a levy or even a bailout, the situation in Cyprus reeks of desperation.
This situation promises to keep the markets on edge. Here's the latest.
The Cyprus Bailout Exposes a World of Thieves, Cheats, and Liars
Let’s call the latest E.U. bailout what it really is: stealing. After all, it is the ultimate institutional goal. Take a look.
Why the Cyprus Bailout Could Set Banking Back 300 Years
On Saturday, the nation's leaders agreed to a "tax" of 6.7% on deposits up to 100,000 euros and 9.9% on deposits above 100,000 euros, to satisfy the EU's demand of 5.8 billion euros ($7.2 billion) as part of the bank bailout. Yes, they're literally raiding their own citizens' savings accounts.
Even by the standards of the EU bureaucracy, raiding the private deposits of Cyprus’ banks is spectacularly foolish.For a measly few billion euros, the EU has now put the entire Eurozone on edge - not to mention the entire global economy.
As a former banker, I can tell you that there’s no substitute for the belief that your deposits are safe and sound. It’s a thin line, and once it’s been crossed it’s nearly impossible to repair. It's all about trust.
Here's why savers everywhere should be concerned by this chilling development.