Cyp-Riots

I agree with the protesters in the streets of Nicosia, Cyprus. "No. Don't do it!"

It sets an awful precedence if banks are allowed to make bad decisions that make them insolvent, then get bailed out by the EU, IMF or their own government by confiscating their depositor's money.

Imagine if a big global bank made some horrible decisions that for all practical purposes made them insolvent. However, they knew that they could simple petition the EU, IMF or their government to bail them out for their poor decisions. What would stop them from continuing the activity? You are in effect letting them get away with the poor decisions without any real repercussions.

Think about this. The people who make the horrible decisions are still running the bank after they get bailed out! History tends to repeat itself. The likelihood of these same bankers making more mistakes in the future is very high. Why on earth would you bail out these executives at the banks when they have proven their ineptness?

Socialists believe they are entitled to everyone else's money in order to facilitate the greater good of society in general. If these socialists get this done, then "Katy bar the door". Others may follow suit. I suspect that we will see a run on banks in the EU if this happens. These people better think long and hard about what they are doing, because the repercussions can be global.

There is apparently about 30% of the Cyprus bank depositors who are Russians. Vladamir Putin is a little upset that he was not consulted about this idea. I can assure you that these smaller countries will see deposits dry up completely if they pass this idea. Those people who are affected will yank their money out and those banks will have less money on deposit in the end. In addition, they will be in worse shape, not better shape after it is done. I believe that they are going to yank their money out at the very first opportunity anyway. Watch as it happens.

It blows my mind how these people can even think of doing something like this, in order to pay for the mistakes of some inept banking executives. Bankruptcy is a better option. Let some other global bank buy the deposits. Write off the loan losses and move on. It is not that complicated. They have made things worse already. I doubt that they can put the genie back in the bottle now.

Let's hope they come to their senses.