New EU Plan Will Make Every Bank Account In Europe Vulnerable
Michael T. Snyder | Jun 28, 2013 03:59AM ET
Did you actually believe that they were not going to use the precedent that they set in Cyprus? On Thursday, EU finance ministers agreed to a shocking new plan that will make every bank account in Europe vulnerable to Cyprus-style bail-ins. In other words, the wealth confiscation that we just witnessed in Cyprus will now be used as a template for future bank failures all over Europe. That means that if you have a bank account in Europe, you could wake up some morning and every penny in that account over 100,000 euros could be gone. That is exactly what happened in Cyprus, and now EU officials plan to do the same thing all over Europe. For quite a while EU officials insisted that Cyprus was a "special case", but now we see that was a lie. International outrage over what happened in Cyprus has died down, and now they are pushing forward with what they probably had planned all along. But why have they chosen this specific moment to implement such a plan? Are they anticipating that we will see a wave of bank failures soon? Do they know something that they aren't telling us?
Amazingly, this announcement received very little notice in the international media. The fact that bank account confiscation will now be a permanent part of the plan to bail out troubled banks in Europe should have made headline news all over the globe. The following is how trade war on Europe. That is not going to help struggling European industries at all.
I hope that more Americans will start paying attention to what is happening in Europe. The crippling economic problems that are sweeping across that continent will come here too.
And at some point there is a very good chance that we will also see Cyprus-style bank account confiscation in this country.
So don't put all of your eggs in one basket. It is good to have your assets spread around a bunch of different places. That makes it much harder for them to be wiped out all at once.
What we are watching in Europe right now is really unprecedented in modern times. They are declaring open season on large bank deposits. In the end, a lot of people in Europe are going to lose a lot of money.
Make sure that you are not one of them.
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