Alert denizens of the Eurozone might take action after learning what’s in store for ordinary savers in Cyprus, after this weekend. A tax, ranging from 6.5% to 9.9% will be levied on all deposits. The money is intended to bail out the banks, as well as the government.
Cyprus, up until this time attracted a good deal of international banking business. Things might change after depositors from elsewhere discover that they will be ‘receiving’ significant NEGATIVE interest on their savings.
The prospect of negative interest, and the example of Cyprus might increase the popularity of stuffing money into mattresses, throughout Europe.
UPDATE 3/19: Amid the threat of a bank run, (which caused banks to be closed until Thursday), legislators in Cyprus rejected the plan to tax bank savings up to 10 percent. This leaves the nation to search for a more palatable way out of their financial woes.
Fellow Americans, this is what you can expect from the Regime of the Kenyan kommie….he already wants to raid people's 401k which are private funds. Expect the same for your meager savings in a "insured" bank.