Tuesday, March 19, 2013

Cyprus garnishes bank accounts: just to target the Russies? Or out of Leftist desperation?


I remember the wild calls from the radical Left (like the People’s Party of New Jersey) in the early 1870s to confiscate accumulated (and undeserved) wealth for “the people”.  That’s what it sounds like Cyprus is doing now, as it says it will confiscate 10% of bank deposits in the country, prompting a run.
  
This is a confiscation of accumulated wealth, not of income.  It sounds like the Bolsheviks!
  
Except that a lot of it seems motivated by Russian deposits, as explained here in Bloomberg Business Week, link. Cyprus apparently lured the Russians down there, despite their ability to cry “nyet”.
The EU, this morning, is urging Cyprus not to garnish bank accounts with balances of less than 100,000 euros, Huffington story here

I recall, in the mid 1970s, during the New York City financial crisis (the “Ford to City: Drop Dead” incident) that there was talk of garnishment taxes in the City to prevent total disorder.  The Teacher’s Union, remember, relented at the last minute.   Back in those days, saving the 35-cent fare was a big deal.  

I seem to recall that a Libertarian Party college friend of mine visited Cyprus and Greece in 1998.


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Update:
Latest information is "NO" (as with the name of the movie);  Cyprus will reject the "harsh" EU bailout to avoid the garnishment.

Is all of this the result of "demographic winter"? 

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