New Zealand planning Cyprus-style “solution” for bank failure. “Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.” Yup, gives a depositor a lot of confidence in his bank if he knows that it’ll stay in business no matter what, even if it has to take his money to do it. Let’s see… what’s the definition of “self-fulfilling prophecy” again?
This post was last modified on March 19, 2013
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Fastest way to completely kill a countries economy? Institute a tax on people's savings and retirements. Then wonder why nobody is buying anything, and the black markets are booming.
Cypress just voted NO on this, however I still foresee a lot of money leaving.
it used to be only desperate individuals attempted bank hiests...now desperate governmets are attempting it...
Then they will freeze the accounts so no one in the next country will be allowed to take their money out.
And in a few years (months?), when no one is putting their money in the local banks? When the demand is met by someone (and you know it will - it has happened every time) in Turks and Caicos or another sane country? We all know that nowadays, with the internet and all, it can be made real easy to have your money somewhere like that.
What will they do then, when the banks have absolutely no money flowing in?
These people never met a short-term solution that will inevitably lead to long-term disaster that they didn't like.
Once again, the statists show their utter inability to connect cause-and-effect. A prerequisite to being a statist (liberal, progressive, whatever).
Apples and oranges. Planning for economic collapse is different than having a government confiscate private property to solve its big spending problems. The former is a legitimate function of government, the latter is not.
This is a 'haircut' in the same sense that decapitation is a haircut.
Coming soon to a country near you.
I dub thee "The Corzine Maneuver"