Monday, March 25, 2013

A goat is still a goat ~ Black Swan Capital

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"The one permanent emotion of the inferior man is fear - fear of the unknown, the complex, the inexplicable. What he wants above everything else is safety."

-- H.L. Mencken

25 March 2013

Don't like a tax on Cypriot depositors? No problem - we'll pretend to scrap it.

It seems a deal has been reached to offer Cyprus a bailout. But the only difference between this deal and previous proposals is the difference between taxation and confiscation. Doesn't sound like much of a difference.


It got too much play. The proposal to levy an across-the-board tax on deposits in Cypriot banks, for good reason, was being called theft.

So in order to quell the uprising and avoid setting a precedent everyone around the world could fear, Cyprus has agreed to a deal different only in semantics.

We can all rest assured a tax will not be levied on depositors. Instead, a portion of uninsured deposits will simply be confiscated to pay off debts of a failed bank and raise enough money to satisfy bailout conditions.

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