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News Link • Economy - International

Cyprus: Once Again, For Those Who Are Sleeping

 The issue is not whether investors should take the loss when there is a bank failure. They should. It is whether: The ECB and other institutions that are holding or guaranteeing bank debt are being protected while others are being hit. That cannot be allowed. That you're a government or quasi-government agency does not make you "superior" in the capital structure. This is the exact scam that was run with GM and it has to stop. The ECB must take the same loss as anyone else holding those bonds, as must any other bank.

The depositors relied on a ECB and government claims of both insurance and solvency. In short, they were lied to. The insurance is being honored but the false claim of solvency is not. This isn't an "opinion" it is a formal declaration coming from a government intended to keep people from pulling their money -- that is, it's intended that you rely on these so-called "opinions." If you're going to issue such pronouncements under the premise that people should rely on them then you must be held to account when it turns out you're full of crap.

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