AEIdeas

The public policy blog of the American Enterprise Institute

Subscribe to the blog

Discussion: (3 comments)

  1. First of all, theft is theft. Period. Private deposits are private property and there is no way to justify confiscating a portion of those deposits to pay for the errors of politicians. The insured deposits were hit because there was no way for Cyprus to just go after Putin’s money without going after the money of its citizens. Its banks are already bankrupt because they were holding Greek sovereign debt against which no reserves were required. There is no way to make up for the losses due to the collapse of the value of Greek sovereign debt by going after deposits. And there is no way to keep hiding the fact that all governments and all financial systems are bankrupt. As someone wrote:

    “The world will soon wake up to the reality that everyone is broke and can collect nothing from the bankrupt, who are owed unlimited amounts by the insolvent, who are attempting to make late payments on a bank holiday in the wrong country, with an unacceptable currency, against defaulted collateral, of which nobody is sure who holds title.”

  2. All of the so called experts who claimed the Euro would overtake the US dollar as the global currency are silent these days.

    1. All of the so called experts who claimed the Euro would overtake the US dollar as the global currency are silent these days.

      Both are fiat currencies so both will ultimately fail. Had the EU allowed Italy, Greece, Portugal, and Spain to exit the Euro the Euro would have been doing much better than the USD. Given the fact that the US debt situation is not much better than that of Greece it is doubtful that the USD or UST markets survive an increase in interest rates.

Comments are closed.

Sort By:

Refine Content:

Scholar

Additional Keywords:

Refine Results

or to save searches.

Open
Refine Content