In response to:

Private Bank Account Raids Spread to Italy, Spain

liberty not license Wrote: Mar 26, 2013 12:51 PM
I disagree. Was it the depositors who made the bank fail? Maybe I am missing something here, but when I put my money in the bank, that seems to help the bank, not make it fail. And apparently, Cyprus's failings are being subsidized by Russian depositors' money. Why are the people responsible for the failures not the ones paying? I would assume those to be those who made bad loans or bad policy.

Despite the small country of Cyprus receiving a bailout from Russia to prevent an economic collapse and bankruptcy, many with deposits in the banking system will see as much as 40 percent in losses. Before the bailout, the Cyprus government suggested confiscating private bank savings to solve the short term problem. Some have argued the confiscation of personal funds can only happen in tiny countries like Cyprus and of course couldn't happen anywhere else however, it looks like Italy and Spain are getting ready to raid private bank accounts in an attempt to offset decades of poor economic decisions.