Thefts Have Consequences: Cyprus Banks See Fallout After Levy
Photo: REUTERS/Yorgos Karahalis
ZeroHedge caught my eye with this post reporting that there are economic consequences to legalized bank robbery.
“Another month, another update on the inefficiency of Cypriot capital controls, where following the latest release by the central bank on the May level of deposits in the banking system, we learn that total cash holdings in Cyprus banks dropped by another EUR 1.4 billion in May to EUR55.9 billion, and 23% lower from the same month last year.”
That should surprise no one. If bank robberies were common, then we would see fewer people using banks. And when the government, enmeshed with a foreign network governing a conglomerate of nations, is the bank robber, it still has the same effect.
What I want to know is what else did anyone expect to happen? Remember, the EU and the IMF initially demanded a “one-time” levy of 6.7% for deposits up to 100,000 euros and 9.9% for all deposits above that amount, on all domestic bank accounts. So even the insured deposits were going to take a hit. Did the geniuses at the EU and the IMF not foresee that this would irreversibly undermine the use of banking? How would such a lack of confidence in the banking system help Cyprus recover?
Happily for many Cypriots, their government pushed back to some extent so that the bank robbery levy only affected those with deposits large enough to not be entirely insured. But the lengthy bank holiday, the fact that anyone’s money was taken at all, and widespread knowledge that the powers that be had wanted to take from more people, all must have severely shaken anyone’s faith that their money was safe in a bank. Frankly, I’m surprised deposits are only down by almost a quarter from this time last year.
Since the EU is making Cypress the model for how they are going to deal with their next banking crisis, it seems likely that many people will try to keep more cash out of the banks so that they don’t have to see that money disappear. Is that what the Eurocrats want?
If they hope to save the banking system I would think they should find ways to make people feel like their money is secure rather than at risk in banks.
Mark Horne has been studying the intersection of ethics and the economy since high school. He was raised in Liberia, West Africa and Kwajalein, Marshall Islands, as well as on the Atlantic coast of Florida. He graduated from Houghton College in 1989 and from Covenant Theological Seminary in 1998. He was ordained in the Presbyterian Church in America and has pastored churches in Washington state and Oklahoma, as well as serving as an assistant pastor in St. Louis.
Trending Now on Affluent Christian Investor
Antifa: The Left-Wing Version Of Fascism
Of COVID-19 And Witch Burning
Systemic Racism Is Real, But Not What You’ve Been Told
Dear David Brooks, There’s No ‘We’ Nor Is There ‘Humiliation’
Solomon On How To Learn Self Control
Hey, Disney, Hamilton Betrayed His Wife And His Country
What’s Happened To Oil Prices In 2020, And Why
The Left Sells Socialism With Race
Real Shining City Economics
What Number Will Signal When the Dollar is About to Plunge to Zero Value?
Why Billy Graham and I Read Revelation Differently
The Real Lesson Of 2020 So Far
Systemic Racism Is Not What You Think It Is
Shemitah Years and Blood Moons as Market Timing Tools
David French vs. Woke Capitalism
The Fed Bails Out The Government, But Who Could Bail Out The Fed?
FLAG vs. FAANG In The Recent Market Sell-Off
Follow Us
The Affluent Mix
Antifa: The Left-Wing Version Of Fascism July 13, 2020 | Daniel McLaughlin
Of COVID-19 And Witch Burning July 13, 2020 | Jerry Bowyer
The Left Sells Socialism With Race July 13, 2020 | Roger McKinney
Systemic Racism Is Real, But Not What You’ve Been Told... July 13, 2020 | Jerry Bowyer
What’s Happened To Oil Prices In 2020, And Why... July 13, 2020 | David Bahnsen
Real Shining City Economics July 13, 2020 | Jim Huntzinger
Solomon On How To Learn Self Control July 13, 2020 | Mark Horne
Dear David Brooks, There’s No ‘We’ Nor Is There ‘Humilia... July 13, 2020 | John Tamny
Hey, Disney, Hamilton Betrayed His Wife And His Country... July 7, 2020 | Roger McKinney
The Fed Bails Out The Government, But Who Could Bail Out The Fed?... July 7, 2020 | Jerry Bowyer
America’s Threats In The Big Picture July 7, 2020 | Frank Vernuccio
Are We Creating The Next Crisis With What We’re Doing To Get Through This Cris... July 7, 2020 | Jerry Bowyer
Protest Versus Productivity July 7, 2020 | Mark Horne
Rumors Of The Death Of Office Buildings Are Greatly Exaggerated... July 7, 2020 | John Tamny
Systemic Racism Is Not What You Think It Is... July 7, 2020 | Daniel McLaughlin
The Real Lesson Of 2020 So Far July 7, 2020 | David Bahnsen
Trampoline Cliff Diving July 7, 2020 | Michael Pento
Thwarting The Wickedness July 7, 2020 | Jim Huntzinger
Why Do-It-Yourself Investors Do So Poorly... July 7, 2020 | Eric Schrum
The Surprising Way Most People Go Wrong With Their Personal Finances... July 7, 2020 | Eric Schrum
Tulsa Race Massacre Reveals Resilience Of Black Entrepreneurs... July 1, 2020 | Roger McKinney
Some Clarification On COVID-19 And The Current Media Coverage... July 1, 2020 | David Bahnsen
Join the conversation!
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.