EU Banking Crisis Over...Tell that to the Cypriots

They said the crisis was over.


‘This is theft, pure and simple’: Cyprus bail-out slicing average depositors’ savings up to 10%

As I write this, I am pondering what has just happened and can scarcely do so whilst believing that Europe should still be called a democracy. In effect, ordinary individuals - people who have worked hard, who have not participated in credit default swaps, who do not earn EUR 2 million a year...have had someone come in and steal an obscene percentage of their savings, to bail out those who do not work hard, who did participate in credit default swaps and who do earn EUR 2 million a year - or much more. 

There is talk about this measure hitting funds laundered by Russian mobsters. It may well do so. But I fail to understand why the Russian mafia has so many 60 and 70 year old Cypriot pensioners in its ranks - these seem to the ones standing outside a few non functional ATMs. Not seeing too many black AMG Mercs here...

I used to wonder about how the Stalins, Hitlers and Maos of this world got to where they did. How could people let these butchers come to power?

Well, I now have a good idea of one way it starts.

Something happens that is so obscene, so wrong and so despised by ordinary people, that they suspend their innate checks, balances and limits as to what would be a better alternative. This is how communism, racism and fascism starts. People lose faith in the norms and begin to look to the extremes.

Because the norms suddenly seem pretty extreme themselves.

Think about it - how would you feel if you went to the bank on Friday to make a deposit, saw your savings at one level, then over the weekend you found out that 10% would not be there by the time the banks would open...and there was not a damn thing you could do about it?

That's how revolutions start.

Think it can't happen to you?

I just hope you're not reading this in Portugal, Italy, Greece or Spain.