This should take no one by surprise at this point; in fact, Kudlow was talking about it on his show last week,
Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief
Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe’s single currency by propping up failing banks, a senior eurozone official has announced.
The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, announced that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.
“If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?’,” he said.
“If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders.”
“If we want to have a healthy, sound financial sector, the only way is to say, ‘Look, there where you take on the risks, you must deal with them, and if you can’t deal with them, then you shouldn’t have taken them on,'” he said.
It would have been nice of him to have warned savers that their accounts could be raided. But I digress.
The president of Cyprus says it’s all temporary,
Which brings up this question,
Have The Russians Already Quietly Withdrawn All Their Cash From Cyprus? Yes, they have, never to return.
How’s that for “temporary”?
Hayek v. Krugman – Cyprus’ Capital Controls
Repeat after me: $19.2 trillion dollars is currently held by US citizens in 401k and other retirement accounts.
Do you really think the government doesn’t want to “help” you manage that money?
Liberace’s ironic comment on derogatory remarks takes on new meaning: “I cried all the way to the bank.”
And if you are thinking of flight to gold, just remember FDR, who made private gold illegal and repossessed it.
So here we are, at last. Our only source of financial salvation is the government. They’re so good at managing money.
Crying all the way from the bank, too.
Kinda like Argentina, huh?