Monday, 18 March 2013

The Raid on Cypriots' Accounts Could Cause a Monetary Tsunami... Will Italy or Spain Be Next?

MAIL ONLINE: Until now it was felt that however bad the crisis in the euro area became, governments would move heaven and earth to protect ordinary bank depositors.

Over the weekend that Rubicon was crossed, as policymakers imposed an immediate tax on all deposits held in Cyprus, as part of a rescue package for the island’s failing economy.

This brutal decision by euroland finance ministers and the International Monetary Fund threatened a run on the whole financial system as depositors rushed to try to get their money out.

And the reverberations could reach beyond further Cyprus to hard-pressed euroland countries including Italy and Spain. Read on and comment » | Alex Brummer | Monday, March 18, 2013