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HomeWhat is Going on in Cyprus?
Posted by Larry Doyle on March 18th, 2013 8:23 AM |
News emanating from the Republic of Cyprus that depositors in its banks will likely be hit with a tax to support an EU bailout of this small nation is a warning signal that the financial system specifically and the world at large remains fraught with risk.
Some individuals within central banks and creditor nations may like to discount the impact of the taxing of depositors as no big deal. Additionally, I can already hear people asserting that Cyprus is a tiny nation with an economic GDP that is hardly statistically significant.
Should we disregard a tax on bank depositors that would relegate the topic of deposit insurance onto the garbage heap? At our peril. Let’s navigate. (more…)
