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You do not think they can attack those assets also?
Sure they can.
However;
a) lopping cash off of people's bank accounts is simply easier.
b) For Europeans, it's become very clear the ECB and governments represent the interests of rich, connected people in Southern Europe and creditors in Germany/etc., and having your money in the same pool as those people, rather than in a bank account, is much more politically protective.
c) For Americans, I don't think flat-out expropriation is a risk at all. If and when our government ever does this nonsense, it will be in a distinctly American style -- i.e. just print/inflate away everything.
So I totally recognize that it isn't a panacea, but yeah, I do think on both sides of the Atlantic you're better off avoiding having more in cash than you absolutely need to, and this is a bit of a wake-up call for everyone (myself included) who has known this on an academic level but hasn't adequately acted on it yet.
This is really a bad idea. When people can't be sure anymore that their savings are safe, they will no longer take their money to the bank, which will ruin the economy as banks have to provide companies and people with money.
And it might set a very bad example for other trouble countries - like Portugal - where politicians are also desperately looking for additional sources of income. I transferred most of my money to my parents' account yesterday.
Interestingly, I read that it was mostly Merkel who pushed that idea, while her party announced tax cuts in Germany. They have general elections in Germany this year...
Cyprus is a haven for tax criminals from Russia and Britain, about one third of the money in Cyprian banks belongs to them. So if they feel they need to steal money from citizens in that way, they should at least limit it to foreigners.
We are definitely looking at a tank. How much depends on whether people across the globe are spooked by this move or if they see it as an isolated incident.
Now this Cyprus mess, before that all those ill-fated austerity measures in several countries, that have lead to deep recession... Those responsible are obviously not up to the task, ignoring all common sense and warnings from independent experts.
And to what end? Only to save the Euro, that monstrosity of a currency that only benefits a few...
Now this Cyprus mess, before that all those ill-fated austerity measures in several countries, that have lead to deep recession... Those responsible are obviously not up to the task, ignoring all common sense and warnings from independent experts.
And to what end? Only to save the Euro, that monstrosity of a currency that only benefits a few...
There hasn't been any real austerity measures which is why nothing has been fixed.
Latvia instituted Austerity and are turning things around.
Each country is a separate case and I know nothing about Latvia, it is not even a PIIGS country...
Here in Portugal civil servants (not to mention employees in the private sector) are being fired, taxes have been raised considerably, the budgets of social security and most other areas have been cut, still the country is in a downward spiral. And many people have predicted that as none of those measures changes anything about the sources of the problems...
Each country is a separate case and I know nothing about Latvia, it is not even a PIIGS country...
Here in Portugal civil servants (not to mention employees in the private sector) are being fired, taxes have been raised considerably, the budgets of social security and most other areas have been cut, still the country is in a downward spiral. And many people have predicted that as none of those measures changes anything about the sources of the problems...
Austerity hurts in the short term, but kicking the can down the road will eventually result in a much more painful event. And if these countries had not kicked the can so far down the road already, they would not need to institute such painful measures today. But it is good that they institute an organized system of debt reduction now, and avert a massive collapse later.
Apparently the froze the percentage they were stealing before folks could go get it withdrawn. Germany is pissing a lot of folks off over there with this stuff.
steal too much of their money and the bankers and politicians might just end up dead.
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