Most of us are aware of the Financial Crisis, when the Government seized amounts from the Bank account of small investors to manage its financial crisis, which triggered of a run on Banks . by people rushing to ATMs to withdraw their cash.
To defuse the situation the EU ,along with the creditors mainly Germany, made out a Bail plan and since it was suggested as being unworkable, a new package was devised.
Under this dispensation,Deposits under 100,000 euros will be protected.
The reasoning behind this is that these amount are (small amounts) are protected by Insurance!
I fail to understand that the Government will be losing the money appropriated ((or Misappropriated) by way of the payment by the Insurers.
Even if the Insurance firms belong to private Sector, it will drive inflation further.
I do not know which Economic Genius thought out this plan!
More than this is an interesting perspective from the ‘Business Insider”
Now banks in EU may tap and seize your savings!
How long will it take to reach India?
I have been voicing about the inefficacy of the Keynesian Economics in my columns for quite some time.
First came Argentina,then Greece, Ireland,now Cyprus.
Western countries rm down an economic system which is not savings oriented, but spending oriented on unsuspecting Nations by way of lending and squeeze when the Note is duel like Germany has done now to Cyprus.