16
Mar
2013

The War on Savers Intensifies as Cyprus nabs depositors in bailout

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As reported via Bloomberg:

Euro-area finance ministers agreed to an unprecedented tax on Cypriot bank deposits as officials unveiled a 10 billion-euro ($13 billion) rescue plan for the country, the fifth since Europe’s debt crisis broke out in 2009.

Cyprus will impose a levy of 6.75 percent on deposits of less than 100,000 euros — the ceiling for European Union account insurance — and 9.9 percent above that.”

Used to be a time you actually earned interest on your savings. Now in this era of ZIRP for as far as the eye can see and QEternity, savers get screwed again as their reward for thinking ahead is to take a haircut to fund economic profligacy.

Queue the bank runs in 3-2-1.

Zerohedge coverage here.

Also see (for the second time today) The Tragedy of Contrarianism.

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