Legally Robbed

As I write, the Cypriot President is in Brussels trying to negotiate a deal to rescue his financially strapped country from bankruptcy.  The potential deal is thought to include a mandatory tax of 20% on those with savings over €100,000.  Last week the tax that was being agreed was 10% on all savings over €10,000 which amounts to legally sanctioned daylight robbery.

It’s an understatement to say people on the island are aren’t very pleased about that.  Other Euro nations are also watching tentatively as this ‘rescue’ package is agreed upon.  Just whom is it rescuing? The banks that were too dumb to succeed and now are too big to fail.  It is not rescuing ordinary people that’s for sure.

With warnings from Russian President Putin if the tax is implemented and the IMF and EU warnings regarding the opposite, who would have thought that a tiny island in the Mediterranean would be on such a volatile fault line?

Taxi for Cyprus…

Bubbly

Tags: bank bailout, Brussels, Cyprus, Euro, euro crisis, euro exit, Europe, finance, IMF, money, News, Politics, Putin, Russia, tax on savings