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.
Tag: EU
The problem ,apart from financial solutions needs political Will of the EU as the economies of the EU countries are interlinked and the fact is that some Nations like France, Germany have to bear the cost of PIIGS(Potugal,Italy,Ireland,Greece,and Spain).Let's see how artifial Union stands up?
Why should some EU share US's perception?They know what had happened with 14 member coalition for Operation Desert Storm.What did the gain out of it?Nearly all leaders of the countries who were a party to that decision have lost their jobs.Nor do the people of these countries want these wars of US.Every country has the right to decide its options.
Artificially brought under one umbrella,Nationalistic feelings are showing up.Clan mentality is Natural.You can not wipe it out by idealistic dialog or by misplaced idealism,especially between UK and France,considering their history.
Interesting to observe that the much touted one global entity,borderless world in terms of communications and the squabble for resources fighting it out.
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