As I understand it, the tax is Germany’s condition for bailing out the Cypriot banks. If Germany doesn’t bail out the banks, what happens to depositor’s money?
I wonder if the politicians there are subject to this same tax on their accounts? My guess would be no.
If Germany didn’t bail out Cyprus’ banks, it would have likely led to a systemic banking failure. And then the Cypriots would’ve had bupkis.
There were two big banks on the verge of insolvency, and the Central Bank of Cyprus couldn’t have bailed them out. If those two went, well.........that’s that. Game over for Cyprus, at least the Southern part of it.
What happens when there is a run on all euro banks genius.
I'd take a 9.9% loss over a 100% loss, but that's just me. You invest in something as inherently bankrupt as a fractional reserve bank, you should be prepared to sow misery.