Maybe putting your money under the mattress isn’t such a bad idea after all:
Bank depositors in Cyprus learned today of a planned heist on their funds. It was a well organized one that will take 6.75% of all small deposit accounts and 9.90% of all large depositor accounts. What is truly shocking about this heist is that it was planned by the EU and IMF and applied to funds, at least for the small depositors, that were supposedly government insured (i.e. risk free). This is what we call a major shock to expectations.
– David Beckworth, “Echoes Of 1933: The Cyprus Heist,” Seeking Alpha, 17 March 2013
According to a related article in USA Today, the threshold between small and large depositors isn’t actually very large at all: “People with less than €100,000 in their Cypriot bank accounts will have to pay a one-time tax of 6.75%, those owning more money will lose 9.9%.” If you’ve been setting aside €5,000 a year for retirement for the last 20 years, for example, the government just decided to take almost 2 of those years of work from you.
It’s an open attack by elected officials, with the collusion of the bankers, on those of their electorate who have any smidgen of fiscal responsibility. So much for the Federal Deposit Insurance Corporation (FDIC): The very entity that is supposed to be the guarantor that individual savings are secure is the one robbing the banks!
I’m just kidding about putting your money under the mattress, of course, but it obviously isn’t safe in the bank! If ever there was a case for gold as a safe haven, this is it.