As one European politician accidentally admitted openly, “Cyprus is the model for future bailouts”.
Much talk has been made of Cyprus’s status a top destination for ‘hot money’ and about how its financial-services driven economy was a bubble due to all the influx of money from purportedly (yet unnamed) ‘dubious sources.’
I’m guessing some readers can identify what many consider the world’s foremost tax haven and hot money destination– the United States. For non-Americans, the U.S. is a highly attractive place to shelter money from their own governments. The U.S. economy is also highly driven by the financial services industry.
What I read in the news and hear on the radio, therefore, might as well be “Cyprus is the model for a U.S. bailout”. Which means “we are laying the groundwork to impose capital limits and use uninsured depositor funds to pay for the casino gambling losses of banks.”
Finally, take a look into the finances of the FDIC. Are you confident that it is ready and able to respond to a black sheep event?
As one European politician accidentally admitted openly, “Cyprus is the model for future bailouts”.
Much talk has been made of Cyprus’s status a top destination for ‘hot money’ and about how its financial-services driven economy was a bubble due to all the influx of money from purportedly (yet unnamed) ‘dubious sources.’
I’m guessing some readers can identify what many consider the world’s foremost tax haven and hot money destination– the United States. For non-Americans, the U.S. is a highly attractive place to shelter money from their own governments. The U.S. economy is also highly driven by the financial services industry.
What I read in the news and hear on the radio, therefore, might as well be “Cyprus is the model for a U.S. bailout”. Which means “we are laying the groundwork to impose capital limits and use uninsured depositor funds to pay for the casino gambling losses of banks.”
Finally, take a look into the finances of the FDIC. Are you confident that it is ready and able to respond to a black sheep event?