At long last: savers will pay for their folly of trusting banks
It was bound to happen and it’s a miracle it didn’t happen before. But in the next round of the crunch, savers will pay for their trust in banks. Cyprus is the first to do the right thing. Savers will be levied to keep the banks going: 10% on their holdings over 100k euro.
Obviously, it’s a disgrace that those without savings are paying to make whole those hoarding cash at banks when these banks do what they do all the time: go bust. That’s, after all, the implication of Government guarantees of these savings.
Cypriots will pay a 10% ‘levy’ of savings over 100,000 euros and almost 7% over savings below that.
Now that the taxpayer is broke (and upset), the inevitable is happening. It will only get worse. Governments are as broke as the banks and can no longer keep up guarantees of savings. And of course, why would they? Why do the poor have to guarantee the holdings of the middle class and the wealthy?
People keeping their money at the bank are not only supporting their own slavery, they are risking losing everything.
Here’s the Guardian reporting. Angry Cypriots are trying to get their money from the banks, but they closed down. So let this be a final stern warning, not from me, but from the real world: if you’re one of the happy few still holding money, get it out of the bank now.