Saturday, March 16, 2013

I Suppose This Is At Least More Transparent

But hard to see how it won't completely collapse the banking system in Cyprus. Mattress time.

European finance ministers have agreed an £8.7bn bailout for Cyprus which includes all Cypriot bank customers handing over up to 10% of their savings.

Small lenders, otherwise known as bank depositors, are having their wealth taken in order to bail out big lenders, otherwise known as banks. But it's really stupid. I have a hard time seeing how bank runs won't completely destroy the system. Who wouldn't take their money out, even if it's too late?