Hello, for those that do not know in the past 2 months the Island country of Cyprus went through a financial crisis.
Upon the fears of a bank run Cyprus closed all of their banks so that the rich will have special privilege to withdraw their money. What I mean by that is the Cyprus banks outside of the country stayed open and then you saw wealth people just get out of the country and withdraw their cash. When the banks reopened there was a limit that people could withdraw each day and the government took into heavy consideration a TAX on deposits. Various other things happened and wiped out some peoples bank accounts.
By completely destroying the working and poor they did in fact stop a bank run but with all of that new printed Cash and rich investors being careful with where they put their cash can Cyprus really stop a financial calamity?
Central banks and governments around the world have stated Cyprus is a good model.
Do you think this is dangerous?
Remember not bailing out these institutions will not mean financial collapse, Iceland did not bail out bankers and are doing fantastic.
