Hoo, boy. I just had a feeling that, once the the EUrocracy learned it could take depositors’ money at will without a total meltdown, the temptation to do it again (and again and again and again…) would be too great to resist. Thus we read in the Telegraph:
Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief
Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe’s single currency by propping up failing banks, a senior eurozone official has announced.
The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.
The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, told the FT and Reuters that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.
“If there is a risk in a bank, our first question should be ‘Okay, what are you in the bank going to do about that? What can you do to recapitalise yourself?’,” he said.
“If the bank can’t do it, then we’ll talk to the shareholders and the bondholders, we’ll ask them to contribute in recapitalising the bank, and if necessary the uninsured deposit holders.”
Ditching a three-year-old policy of protecting senior bondholders and large depositors, over €100,000, in banks, Mr Dijsselbloem argued that the lack of market contagion surrounding Cyprus showed that private investors could now be hit to pay for bad banking debts.
Don’t you just love how Dijsselbloem puts it? “We’ll ask them to contribute.” As if Manuel the Madrid taxi driver, who’s put his life’s savings into a bank he thought he could trust, will get any chance to say no. If he’s lucky, he’ll wake one morning to discover that his masters in Brussels have left him anything at all.
This is just immoral. Depositors in Cyprus are being robbed to cover for the bad borrowing decisions of governments and the equally stupid lending decisions of bankers, and now Dijsselbloom and his fellow mandarins are casting their gaze across Europe and seeing a smorgasbord filled with tasty accounts waiting to have a bite taken out of them.
Let’s review an old principle of (real) liberalism that’s more and more forgotten these days: your bank account is your property, as it represents the fruits of your labor. Security in your right to property is essential to your liberty; if you do not have the first, then you lack the second. If some bureaucrat can come and take your property via a diktat dressed in legal finery, then you are not a free human being.
Desperate to save their precious Euro at all costs, the Eurocrats and the national governments are all but guaranteeing a future bank run and financial panic as frightened people take their money and try to put it beyond the reach of grasping, blundering officials and quite possibly creating the very crash they’re trying to avoid.
With establishment politicians like these, is it any wonder people turn in frustration and anger to radical politics?
PS: And I wish the EU would stop giving Obama ideas…
via Bryan Preston
(Crossposted at Sister Toldjah)