Monday, March 18, 2013

After Cyprus, what's next?

Ed Driscoll looks at the bad things that could happen after Cyprus slapped a major tax on bank deposits.
Banks are fiduciary institutions. The rely on trust; and, if there is a breach of trust, they are cooked. Individuals deposit money in banks instead of stuffing it in their mattresses because they believe that it will be safe there. Once they realize or even suspect that the money they put in the bank is anything but safe, they will take what is left of their money and run — and the bank will collapse. And Cyprus is not Las Vegas. What happens in Cyprus cannot possibly stay in Cyprus.
Think there are any good things that can happen from this?

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