If you’ve been reading the international news, you’re probably familiar with the fact that the government of Cyprus, a European Union member, is under pressure from the European Central Bank to seize funds in private depositors’ bank accounts to bail out Cypriot banks.
Although when first floated, all accounts were targeted for seizure in varying percentages, the latest plan seems to include only those who were good at saving, those with more than 100,000 Euros in the bank. Up to 60% of the amount on deposit might be seized.
Imagine someone who works their whole life, saves their money and keeps it liquid in a bank account – no crazy speculation for him! – only to find that he’s paying the price for the bank’s foolish behavior. Depositors like him, who never stood to realize an upside in terms of distributions of the bank’s profits, got only the downside via confiscation.
Upon reflection, how different is balancing a banking system failure on the heads of the productive from balancing the books of the healthcare system by reducing reimbursement to physicians? Same work. Less pay. But hey, it’s patriotic.
Still complaining? Don’t you know that you’re just paying your fair share?
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Mark F. Weiss