From Spain – 19th March March 26, 2013Posted by WorldbyStorm in Economy, From Spain, The Left.
A week late, my fault entirely. Here’s ejh’s take on the events in Cyprus and their possible ramifications.
This is what’s wrong with the Cyprus nonsense. It’s not the complexities that matter here so much as the simplicities. A bank, for most of us, is simply where you put your money. There’s no “moral hazard”. You’re not seeking to get something for nothing. It’s a necessity. You can scarcely operate as a citizen, and not at all as a business, without one. You are not making a bet with it. You’re not buying shares with it. You’re not making any statement about the soundness or prospects of the bank, which you are simply not in a position to know about. It is not supposed to be an act which entails any responsibility. Making a bet with it is precisely what you are not doing.
There’s something that I think is often forgotten in all this…