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The Cypriot Money Grab

March 18, 2013 | About:
Classic Socialism in Action: Backlash from the proposed 6.75% to 9.9% confiscation of savers’ deposits has caused Cypriot politicians to rethink their original plan. Monday’s Wall Street Journal now reports that a revised money grab may be more tolerable to the masses who were outraged, not at the stealing of innocents’ wealth, but at the lack of steep progressivity.

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The trial balloon proposal, which screwed even "mom and pop" from their first euro, set the stage for a revised, “This is much less bad than the original” acceptance by the masses.

Political leaders think the public will be less outraged or more tolerant of their immoral behavior if "the rich" must suffer at a far greater threshold than others.

This was the founding principle of America’s fiscal cliff resolution earlier this year. Jacking up rates only on high earners left the average person "all in favor."

Everybody loves new taxes that they perceive will never apply to them.

The coming implementation of the deceptively named Affordable Care Act (Obamacare) makes it mandatory to disclose 15 pages of financial information in order to qualify for subsidies or avoid penalties. In reality, the ACA is the beginning of a push for our government to know everything about everyone’s full net worth.

Once that happens, expect wealth taxes worse than what was just announced in Cyprus to be instituted here in America, all in the name of social justice.

About the author:

Dr. Paul Price
http://www.RealMoneyPro.com
http://www.gurufocus.com/peter_lynch.php
http://www.TalkMarkets.com
http://www.MutualFunds.com

Visit Dr. Paul Price's Website


Rating: 2.2/5 (10 votes)

Comments

batbeer2
Batbeer2 premium member - 1 year ago
Some facts:

- Cyprus is an island.

- Cyprus has 1m citizens.

- They just got a $10B bailout without which their local banks would be bankrupt.

- Cyprus has a GDP of roughly €35bn

- The government of Cyprus has chosen NOT to wipe out the equity or debt of their banks.

Do the math. At 10k per capita, the bailout is roughly equal to 30% of GDP.

How is this possible?

10,000 Russians expats have €35bn in deposit accounts. Again, do the math.

These banks didn't lose 10bn shoveling around the money of the good people of Cyprus. These banks were laundering Russian rubles. Basically, the EU is bailing out Russian crooks and that is simply not acceptable to the countries footing the bill. Including my own.

The Cypriots are going to vote for a steeply progressive tax because that way they can take some dodgy Russian money to shore up the balance sheets of their broken banks.

I've seen this movie before. Back then it was Iceland.

This is not socialism. This is Angela Merkel showing the Russian mafia who's boss and the government of Cyprus using Russian deposits to enrich (local) shareholders.
Cornelius Chan
Cornelius Chan - 1 year ago
Dr. Price makes some good points.

Please leave your comment:


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