Things Falling Apart
. . . And by things falling apart, I'm talking about that international ponzi scheme known as the global financial markets, which could be on the brink of yet another meltdown triggered by some Russian money launderers in Cyprus.
Am I missing something here or is freezing bank accounts so that people can't get their money before the government takes 10% of it a really bad idea? That such an idea has even been proposed has to be setting off a lot of alarm bells around Europe -- and indeed, around the world. What it would seem to say is that at the first whiff of trouble, people should get their money immediately before the government tries to take part of it.
I can't think of a better way to cause the type of panic that leads to a run on the banks. One of the cornerstones of economic stability is the confidence of the population that if they put their money in a bank, their money is going to be there when they need it.
Now some might be wondering why the Russian government would be interested in bailing out Cypriot banks in order to protect the ill-gotten gains of organized crime. The answer to that one is simple enough -- in Russia, the government and organized crime are basically the same thing.
Am I missing something here or is freezing bank accounts so that people can't get their money before the government takes 10% of it a really bad idea? That such an idea has even been proposed has to be setting off a lot of alarm bells around Europe -- and indeed, around the world. What it would seem to say is that at the first whiff of trouble, people should get their money immediately before the government tries to take part of it.
I can't think of a better way to cause the type of panic that leads to a run on the banks. One of the cornerstones of economic stability is the confidence of the population that if they put their money in a bank, their money is going to be there when they need it.
Now some might be wondering why the Russian government would be interested in bailing out Cypriot banks in order to protect the ill-gotten gains of organized crime. The answer to that one is simple enough -- in Russia, the government and organized crime are basically the same thing.