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Wait, what...?

I love this

Key 'graph:

In a radical departure from previous aid packages, euro zone finance ministers want Cyprus savers to forfeit a portion of their deposits in return for a 10 billion euro ($13 billion) bailout for the island, which has been financially crippled by its exposure to neighboring Greece.

Now, can you see the current regime in the United States trying this? Well, not yet, but they're watching (in envy?) the Euro Finance Ministers attempting to do it, and if/when the waste hits the rotating airfoil they'll, I'm sure, think hard about giving it a try.

Four years ago, I never would have even considered this as a possibility in the US, but since that time I've listened to the strident class warfare being indulged in more and more on the Left: a pedal-to-the-metal, Evel Knievel-like, headlong run at the fiscal cliff and an unwillingness to acknowledge that there's economic theory and then there's plain and simple math. If we hit the wall, this is a classic outcome and one a Pelosi, or an Obama, or a Schumer would try in a heartbeat. It will be interesting to see how Americans react.


8 Comments

 Of course!  Punish the prudent to save the imprudent.

Meh.

They'd have to freeze the assets before making the announcement, else the banking system collapse from the giant sucking sound followed by the suddenly-fluffy mattresses of the citizenry.
 
 "European officials said it would not set a precedent."

In other news, a gold-farting Unicorn was seen in a park in Brussels.
 
Chuck the Schmuck would love this!  But first he wants to ensure a Cruise Passenger's Bill of Rights is enacted.  Aapprently this sequestratoin thing isn't such a high priority for him.  What a useless sack of solid waste.
 
From what I've read over at Vox Day's place, The Cyprus government has changed their minds about allowing this, as a large chunk of that money is Russian money, and those boys are very afraid of Putin and his guys, as in afraid for their very lives.
 
Actually, I'm more worried about the government getting greedy looking at IRA's and 401k's. Lot of money sitting there they'd like a nice peice of. Maybe not outright nationalization (or forcing you to transfer/invest in gov-backed securities), but maybe a special tax on your distributions? And I'm betting someone somewhere is wondering how to get an extra taste off Roth IRA's as well.
 
 Five years ago, raids on pensions of various forms were only a twinkle in the eyes of big Government. This year, there is hardly a Legislature of either Blue or Red persuasion that isn't considering some sort of pension thievery.

Oregon has about 30+ of these bills in the Legislature right now, most aimed at public employees, but if those pass legal muster, private funds won't be far behind. That's the fact that the raiders just don't get: Once this starts, it WILL spread. The GOP is behind the raids on public pensions, but few of them are bright enough to realize that any form of savings is at risk if the contracts to pay those promised public pensions are breached. It gets worse: those of us who are already retired are having our pensions nibbled away a few percent at a time by various formsof reneging.

The military is not immune: those exploding TriCare premiums and co-pays are part of this reneging as well, so can retirement pay itself be immune? I think not.
 
Yup, it's annoying, ain't it, Rivr.  I mean, why is The Collapse about to happen right now, when I'm just getting into my seventh decade on this here mudball, and thus 'way too old to play infantry games, instead of forty or so years ago when I was young and dumb and strong, or thirty years hence when I'll  be safely six feet under?

Sorry, just bitchin' and complainin'.
 
Similar to what JTG has said, Cyprus has turned their banking system into a money-laundering operation for the Russian mob.

The logic is that they're really putting the bite into the gangsters and such with this. If they were serious, they would set a minimum below which no one would suffer. The below €100,000 cut of %6.75 should be zero percent.